IBD 50 member Cigna is forming a base , offering a 272.91 buy point as it gets set to report its next round of earnings on May 6. The entry is based on a first-stage cup without handle on a MarketSmith weekly chart. With headlines driving the market, Friday may be a good day to add to watchlists for weekend homework.
Understand that it's risky to buy any stock just before it reports. You can reduce your risk by waiting to see the actual numbers and the market's reaction. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.
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Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 36%, compared to 30% in the prior report. Revenue increased from 8% to 10%.
Analysts expect earnings-per-share growth of 9% for the quarter, and 10% growth for the full year.
The company has a 94 Composite Rating and holds the No. 4 rank among its peers in the Medical-Managed Care industry group. Anthem is the No. 1-ranked stock within the group.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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