Back to top

Image: Bigstock

Centene (CNC) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Centene (CNC - Free Report) closed the most recent trading day at $82.95, moving -0.82% from the previous trading session. This change lagged the S&P 500's daily gain of 3.06%. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Prior to today's trading, shares of the healthcare company had gained 2.14% over the past month. This has outpaced the Medical sector's loss of 2.37% and the S&P 500's loss of 4.31% in that time.

Centene will be looking to display strength as it nears its next earnings release. In that report, analysts expect Centene to post earnings of $1.69 per share. This would mark year-over-year growth of 35.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.44 billion, up 14.23% from the year-ago period.

CNC's full-year Zacks Consensus Estimates are calling for earnings of $5.62 per share and revenue of $142.41 billion. These results would represent year-over-year changes of +9.13% and +13.04%, respectively.

Investors should also note any recent changes to analyst estimates for Centene. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.56% higher. Centene currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Centene is currently trading at a Forward P/E ratio of 14.89. This valuation marks a discount compared to its industry's average Forward P/E of 16.01.

Also, we should mention that CNC has a PEG ratio of 1.05. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Centene Corporation (CNC) - free report >>

Published in