Cigna Group (CI)

The sleeper story is that CI just converted their biggest regulatory risk into a competitive advantage - the FTC settlement forces the rebate-free model they were already building while competitors scramble to catch up. Yes, PBM margins compress in 2026-2027, but this is strategic investment with a clear end date ('largely dissipate after 2027') and locked $90B revenue base through 2030. The binding constraint isn't demand or competition - it's their own technology build-out timeline for the rebate-free platform. Most revealing quote: 'We were well-positioned to execute on the terms of this settlement because of the new pharmacy benefit model that we began developing at the beginning of 2025.' My view changes if the 50% EverNorth adoption target by 2028 starts slipping or if rebate-free client margins prove materially lower than legacy contracts.