Why Cigna Corporation (CI), First Solar, Inc. (FSLR), and Aetna Inc (AET) Were 3 of Monday’s Best Stocks

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Well, time keeps marching on but it sure doesn’t seem like these Greece talks are. Talks between the troubled Mediterranean nation and its creditors broke down on Monday, bringing global stock markets with it. With a major debt payment due on June 30, it’s time for Greece to illustrate exactly how it plans to make the payment.

cigna-corporation-ci-stock-185But Greece’s proposals were considered too vague to be meaningful, and fears mounted that the country could flat-out default on what it owes. The S&P 500 lost 9 points, or 0.5%,ending at 2,084 in trading.

Less than a third of U.S. stocks managed to end higher on Monday, but Cigna Corporation (CI), First Solar, Inc. (FSLR), and Aetna Inc (AET) all charged higher, ending as three of the best performers in the stock market.

Cigna (CI)

If you were looking at Cigna stock in a vacuum, you’d think Wall Street went bonkers on Monday. (You’d probably also wonder how a stock got in a vacuum). Shares of the health insurance company roared 11.8% higher on Monday, bringing its year-to-date gains to 49%.

The jump wasn’t apropos of nothing, of course. A Wall Street Journal article fingered CI stock as an acquisition target of Anthem Inc (ANTM), which is said to be in high-level negotiations to acquire Cigna. The report claimed that two bids had been made in the last 10 days alone, the latter being in the $175 per share area.

Understandably, Cigna stock shot up on the news, as the stock’s closing price last Friday was just $137.31, giving it 27% upside to $175.

First Solar (FSLR)

Shares of First Solar also took off yesterday, shooting 5.9% higher. Rather than a takeover offer, the spark behind the rally was a new efficiency milestone for the company’s solar panels.

In an objective demonstration of how solar technology continues to progress, FSLR announced that it had set a world record for cadmium-telluride (CdTe) photovoltaic (PV) module conversion efficiency. Specifically, it recorded an “18.6 percent aperture efficiency for an advanced full size module.”

Being that it’s a touch obscure, it’s probably not the most exciting world record you’ll ever hear about, but for investors in FSLR stock, going down in the books for CdTe PV module conversion efficiency ain’t half bad, and the company’s CdTe thin film can now be classified as a high performance product according to First Solar’s CTO.

Aetna (AET)

Rounding out Monday’s best stocks is Aetna, another health insurance company. Up 4.4%, you might suspect that AET merely ended higher because the talks between Anthem and Cigna point to consolidation in the industry.

Nope. The same WSJ report that announced the Cigna-Anthem discussions also cited anonymous sources “familiar with the matter” as saying UnitedHealth Group Inc. (UNH) — the largest health insurer by revenue — is thinking seriously about acquiring either Cigna or Aetna.

With the prospects of a bidding war against Anthem making a Cigna deal at least marginally less likely, AET stock ended as one of the best performers in the market in the wake of the UNH takeover talk.

As of this writing, John Divine did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @divinebizkid or email him at editor@investorplace.com.


Article printed from InvestorPlace Media, https://investorplace.com/2015/06/why-cigna-corporation-ci-first-solar-inc-fslr-and-aetna-inc-aet-are-3-of-best-stocks/.

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