Cigna Corporation
Thesis
Cigna is trading at 8x earnings, which is exceedingly cheap compared to its growth potential. The company is expected to benefit from the influx of uninsured individuals entering the market in 2014 due to healthcare reform, which should positively impact its customer base and revenue.
Did it work?
No price performance or pitch date is available, so the verdict rests on whether the thesis's stated catalyst occurred. The core event — uninsured individuals entering the market in 2014 under healthcare reform — did materialize, and managed-care insurers including Cigna saw enrollment and revenue growth from the expansion of insured lives, supporting the demand-side of the thesis. However, without price data we cannot confirm whether the cheap 8x earnings valuation re-rated or the stock actually delivered gains, so the investment outcome is only partially verifiable.