We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Centene (CNC) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Centene (CNC - Free Report) closed the most recent trading day at $75.26, moving +1.26% from the previous trading session. This change lagged the S&P 500's 2.6% gain on the day. At the same time, the Dow added 2.83%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the healthcare company had lost 11.44% in the past month. In that same time, the Medical sector lost 8.72%, while the S&P 500 lost 12.9%.
Investors will be hoping for strength from Centene as it approaches its next earnings release, which is expected to be October 25, 2022. On that day, Centene is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 3.17%. Meanwhile, our latest consensus estimate is calling for revenue of $35.48 billion, up 9.5% from the prior-year quarter.
CNC's full-year Zacks Consensus Estimates are calling for earnings of $5.70 per share and revenue of $143.6 billion. These results would represent year-over-year changes of +10.68% and +13.98%, respectively.
Investors might also notice recent changes to analyst estimates for Centene. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Centene is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Centene has a Forward P/E ratio of 13.04 right now. For comparison, its industry has an average Forward P/E of 19.76, which means Centene is trading at a discount to the group.
Also, we should mention that CNC has a PEG ratio of 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - HMOs industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Centene (CNC) Gains But Lags Market: What You Should Know
Centene (CNC - Free Report) closed the most recent trading day at $75.26, moving +1.26% from the previous trading session. This change lagged the S&P 500's 2.6% gain on the day. At the same time, the Dow added 2.83%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the healthcare company had lost 11.44% in the past month. In that same time, the Medical sector lost 8.72%, while the S&P 500 lost 12.9%.
Investors will be hoping for strength from Centene as it approaches its next earnings release, which is expected to be October 25, 2022. On that day, Centene is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 3.17%. Meanwhile, our latest consensus estimate is calling for revenue of $35.48 billion, up 9.5% from the prior-year quarter.
CNC's full-year Zacks Consensus Estimates are calling for earnings of $5.70 per share and revenue of $143.6 billion. These results would represent year-over-year changes of +10.68% and +13.98%, respectively.
Investors might also notice recent changes to analyst estimates for Centene. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Centene is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Centene has a Forward P/E ratio of 13.04 right now. For comparison, its industry has an average Forward P/E of 19.76, which means Centene is trading at a discount to the group.
Also, we should mention that CNC has a PEG ratio of 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - HMOs industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.