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Centene Corporation (CNC), with a market cap of $40.26 billion, is a multinational healthcare enterprise. Headquartered in St. Louis, Missouri, Centene is committed to providing individuals and families with high-quality and affordable healthcare solutions. Operating through a wide range of health plans and services, Centene serves millions of members across the U.S., focusing on government-sponsored programs such as Medicaid, Medicare, and the Health Insurance Marketplace.
Centene has underperformed the broader market over the last year. The stock has gained 11.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.1%. Also, in 2024, the stock is up marginally compared to SPX's 9% gains on a YTD basis.
Narrowing the focus, CNC underperformed the US Healthcare Providers Ishares ETF (IHF). The exchange-traded fund has gained 3.7% on the YTD basis, dwarfing CNC’s returns during the same period.
On Jul. 26, Centene reported its Q2 results. The stock gained marginally on the day it released results, as the company’s revenue of $39.84 billion beat analysts’ expectations of $36.54 billion. Moreover, CNC guided full-year revenue between $155 billion to $157 billion.
In addition, on Jul. 16, CNC shares rose more than 4% after UnitedHealth Group (UNH) announced a stronger-than-expected full-year adjusted EPS forecast, which boosted most health insurance stocks.
For the current fiscal year, ending in December, analysts expect CNC’s EPS to grow 2.4% to $6.84 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 18 analysts covering CNC stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings and 10 “Holds.”
This configuration is less bullish than three months ago, with nine suggesting a “Strong Buy.”
On Aug. 5, Wells Fargo & Company (WFC) analyst Steve Baxter maintained a “Buy” rating on Centene, with a price target of $93, which indicates a 24.4% upside from the current levels.
The mean price target of $85.06 represents a 13.7% premium to CNC’s current price levels. The Street-high price target of $96 suggests an upside potential of 28.4%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
