Back to top

Image: Bigstock

Centene (CNC) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Centene (CNC - Free Report) closed at $83.41, marking a -1.6% move from the previous day. This change lagged the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the healthcare company had lost 12.43% in the past month. In that same time, the Medical sector lost 4.89%, while the S&P 500 lost 7.59%.

Centene will be looking to display strength as it nears its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $35.48 billion, up 9.5% from the year-ago period.

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.

Any recent changes to analyst estimates for Centene should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 sporting a Zacks Rank of #3 (Hold).

Investors should also note Centene's current valuation metrics, including its Forward P/E ratio of 14.87. This represents a discount compared to its industry's average Forward P/E of 19.47.

We can also see that CNC currently has a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CNC's industry had an average PEG ratio of 1.16 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

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