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Saint Louis, Missouri-based Centene Corporation (CNC) is a healthcare enterprise that provides programs and services to underinsured, uninsured families, and commercial organizations. Valued at a market cap of $29.4 billion, Centene is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Centene fits the label perfectly, with its market cap exceeding this threshold. The company benefits from strong government contracts, diversified revenue streams, and a focus on cost-effective healthcare solutions. Additionally, Centene’s strategic acquisitions and expansions have strengthened its market position, while its commitment to digital transformation and value-based care enhances operational efficiency and customer experience. With a focus on innovation and growth, Centene continues to expand its influence in the managed healthcare sector.
Shares of Centene are currently down 26.5% from its 52-week high of $80.59, reached on Sep. 3. It has gained 2.5% over the past three months, outpacing the broader Dow Jones Industrials Average’s ($DOWI) 3.7% dip over the same time frame.
However, in the longer term, CNC stock has declined 21.5% over the past 52 weeks, considerably lagging behind DOWI’s 8.1% rise.
To confirm its bearish trend, Centene has been trading below its 200-day moving average since October and has remained under its 50-day moving average since early February, with slight fluctuations.
On Feb. 4, shares of Centene plummeted 5.5% after its Q4 earnings release, despite delivering better-than-expected Q4 adjusted EPS of $0.80 and revenue of $40.8 billion. Moreover, the bottom line climbed 77.8% year over year, while the top line improved by 3.4% annually. While total membership grew by 4.1% annually, Medicaid membership saw a notable decline of 10.1% from the previous year's quarter. Further contributing to the negative market reaction, service revenues fell by 29.7% year over year, raising concerns among investors despite the company's overall revenue growth.
Centene has considerably lagged behind its rival, The Cigna Group’s (CI) 10% decline over the past 52 weeks.
Wall Street analysts remain moderately optimistic about CNC stock's potential. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $77.41 suggests 30.7% premium to its current levels.
