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.
Is a Beat in the Cards for Centene (CNC) in Q2 Earnings?
Read MoreHide Full Article
Centene Corporation (CNC - Free Report) will release second-quarter 2018 results on Jul 24, before the market opens.
Centene’s top line will be buoyed by strong performances by its Government business and Medicaid businesses. We specifically expect to see business growth from Maryland, Missouri, Nevada and Florida regions. The Zacks Consensus Estimate for second-quarter revenues is pegged at $13.8 billion, reflecting a year-over-year rise of nearly 16.1%.
Medicaid membership is expected to increase driven by new contracts. Apart from Medicaid, the company’s Medicare business is poised for long-term growth. Increase in the company’s Medicare membership is also anticipated in the impending quarterly results.
The company has likely positioned itself by constantly investing in systems and capabilities.
The investment in RX Advance, a full-service pharmacy benefits manager, has likely helped the company reduce its administrative cost and affordable drug-impacted medical cost.
The company has likely experienced stable medical cost trends and has expanded through organic growth.
In the second quarter, Centene has likely seen its margins expand as it remains focused on process efficiencies to automation as well as on improving its scale.
What the Quantitative Model States
Per our proven model, Centene Corporation is likely to beat on earnings this quarter to be reported. This is because the stock has the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Zacks ESP: Centene Corporation has an Earnings ESP of +0.63%. This is because the Most Accurate estimate is pegged at $1.77, higher than the Zacks Consensus Estimate of $1.76. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Centene Corporation carries a Zacks Rank #3, which increases the predictive power of ESP.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the medical sector with the perfect combination of elements to surpass estimates in the next releases are as follows:
Align Technology, Inc. (ALGN - Free Report) is set to report second-quarter earnings on Jul 25. This #1 Ranked stock has an Earnings ESP of +7.34%.
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +154.55%. This #3 Ranked company is set to report second-quarter earnings on Jul 26.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Is a Beat in the Cards for Centene (CNC) in Q2 Earnings?
Centene Corporation (CNC - Free Report) will release second-quarter 2018 results on Jul 24, before the market opens.
Centene’s top line will be buoyed by strong performances by its Government business and Medicaid businesses. We specifically expect to see business growth from Maryland, Missouri, Nevada and Florida regions. The Zacks Consensus Estimate for second-quarter revenues is pegged at $13.8 billion, reflecting a year-over-year rise of nearly 16.1%.
Medicaid membership is expected to increase driven by new contracts. Apart from Medicaid, the company’s Medicare business is poised for long-term growth. Increase in the company’s Medicare membership is also anticipated in the impending quarterly results.
The company has likely positioned itself by constantly investing in systems and capabilities.
The investment in RX Advance, a full-service pharmacy benefits manager, has likely helped the company reduce its administrative cost and affordable drug-impacted medical cost.
The company has likely experienced stable medical cost trends and has expanded through organic growth.
In the second quarter, Centene has likely seen its margins expand as it remains focused on process efficiencies to automation as well as on improving its scale.
What the Quantitative Model States
Per our proven model, Centene Corporation is likely to beat on earnings this quarter to be reported. This is because the stock has the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Zacks ESP: Centene Corporation has an Earnings ESP of +0.63%. This is because the Most Accurate estimate is pegged at $1.77, higher than the Zacks Consensus Estimate of $1.76. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Centene Corporation Price and EPS Surprise
Centene Corporation Price and EPS Surprise | Centene Corporation Quote
Zacks Rank: Centene Corporation carries a Zacks Rank #3, which increases the predictive power of ESP.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the medical sector with the perfect combination of elements to surpass estimates in the next releases are as follows:
Magellan Health, Inc. is set to report second-quarter 2018 earnings on Jul 24. The stock has an Earnings ESP of +2.83% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology, Inc. (ALGN - Free Report) is set to report second-quarter earnings on Jul 25. This #1 Ranked stock has an Earnings ESP of +7.34%.
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +154.55%. This #3 Ranked company is set to report second-quarter earnings on Jul 26.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>