We recently compiled a list of the 11 Cheap ESG Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where The Cigna Group (NYSE:CI) stands against the other cheap ESG stocks.
These days, it seems like everyone wants to wear the “saving the world” cape. Whether this urge to make a real impact on the world stems from a desire to ride the social trend wave or simply out of genuine concern is, well, a debate for another day. For now, let’s focus on the fact that all companies must adhere to Corporate Social Responsibility (CSR) by law.
In other words, ESG companies are those that incorporate Environmental, Social, and Governance factors into their operations and decision-making. This framework is utilized to measure an organization’s practices and performance on sustainability and ethical grounds. In capital markets, some investors employ ESG criteria to assess companies and make their investment decisions accordingly, a practice known as ESG investing. While investing delivers financial returns, ESG investing offers both financial returns and societal impacts, and that’s what is most valued by some investors.
Some believe ESG investing is aligned with reduced risk exposure, stakeholder interests, and superior returns. Not only attractive in theory, but there are reports that back this form of investing. For instance, the Sustainability Megatrends Report by Cushman & Wakefield reveals that ESG companies are gaining traction from institutional investors. A survey of 250 institutional investors indicated that around 60% noted higher performance yield from ESG investments, and 78% were willing to pay higher premiums for these funds.
“Institutional investors are showing increased demand for properties with strong ESG-related management and activities,” the report underscores.
A US SIF “Trends Report” reveals that out of the US market size of $52.5 trillion, $6.5 trillion (12%) is identified as a sustainable or ESG investment. Having said that, as many as 73% of respondents believe the sustainable investment market will grow over the next few years. Therefore, community investing continues to shine with rising enthusiasm across several types of investors.
ESG companies are mainly ranked by third-party ranking agencies based on how well they perform across Environmental, Social, and Governance indicators. Using standardized metrics, proprietary models, and disclosures, the companies are then assessed and compared. Among the most notable agencies are MSCI, Sustainalytics (by Morningstar), Refinitiv ESG Scores, and S&P Global ESG Scores. In this analysis, we have used the ratings by Sustainalytics, which covers over 15,000 firms across 42 industries globally. The firm recently disclosed its 2025 list of ESG Top-Rated Companies, identifying Global 50 Top-Rated companies and other regional and industry leaders. Given this, we will take a look at some of the best ESG stocks to consider.
Our Methodology:
We have compiled a list of 11 companies ranked by Sustainalytics (by Morningstar) in its recent ESG Top-Rated Companies report. From the report, we identified companies with a forward P/E less than 15, extracted from FINVIZ. From there, we picked companies with the highest number of hedge fund investors, as per Insider Monkey’s database of Q4 2024. From less preferred to highly preferred, according to hedge funds, the selected stocks are listed in either the global, regional, or industry standings in the report.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A healthcare team discussing strategies for patient advocacy programs.
The Cigna Group (NYSE:CI)
Number of Hedge funds holding: 72
Forward P/E as of May 06, 2025: 10.09
The Cigna Group (NYSE:CI) is a global health company providing insurance and related products. With two main segments: Evernorth Health Services and Cigna Healthcare, it has a vast offering including coordinated and point solution health services, and pharma-related care. Based in Connecticut, the company is committed to a better future.
The company maintains a strong ESG vision to revolutionize the health ecosystem into one that is well-functioning, sustainable, accessible, and equitable. The Cigna Group (NYSE:CI) seeks to recognize advanced efficiencies and make strategic investments to mitigate not only operational costs but also environmental impacts, as it believes responsible environmental stewardship has the potential to improve health and vitality.
The Cigna Group (NYSE:CI) collaborated with the Houston Parks Board to improve neighborhood parks as it strives to improve health outcomes through elevated environmental exposures. As part of the project, Grimes Park in the Sunnyside neighborhood now has a football field, playground, picnic area, walking path, and basketball pavilion, among others. The company is also partnering with Brighter Bites to provide healthy food guidelines and 20 pounds of free fruits and vegetables each week to around 500 elementary students and their families.
Just recently, The Cigna Group (NYSE:CI) Foundation announced an additional $1 million to youth clubs to support mental health in America over the next two years. The funding will go into the training of staff to identify mental health-related symptoms in individuals, incorporating trauma-informed strategies in their practices, and expanding its Behavioral Support Toolkit to all Clubs. Over the last year, the platform extended a $250,000 grant for developing a teen mental health guide, strengthening youth mental health programming. With this, we can say that the company is in the right direction to invest over $27 million in grants to nonprofit organizations through 2026.
The Cigna Group (NYSE:CI)’s water management and waste reduction efforts, too, are quite commendable. The company prioritizes leasing LEED-certified buildings by working towards embedding green language into their leases. It tracks water performance, safeguards natural habitats by building discharge water, offers an efficient irrigation system, and adopts a data-driven approach to mitigating pharmaceutical inventory waste. On that note, we can label it as one of the best ESG stocks to keep an eye on.
Overall CI ranks 5th on our list of cheap ESG stocks to buy according to hedge funds. While we acknowledge the potential of CI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.