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Centene Corporation (CNC) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Centene (CNC - Free Report) ? Shares have been on the move with the stock up 7.8% over the past month. The stock hit a new 52-week high of $69.63 in the previous session. Centene has gained 68.7% since the start of the year compared to the 2.4% move for the Zacks Medical sector and the 20% return for the Zacks Medical - HMOs industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 28, 2026, Centene reported EPS of $2.51 versus consensus estimate of $0.89 while it beat the consensus revenue estimate by 12.73%.
For the current fiscal year, Centene is expected to post earnings of $4.89 per share on $196.29 in revenues. This represents a 135.1% change in EPS on a 0.77% change in revenues. For the next fiscal year, the company is expected to earn $5.34 per share on $192.58 in revenues. This represents a year-over-year change of 9.19% and -1.89%, respectively.
Valuation Metrics
While Centene has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Centene has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.1X. On a trailing cash flow basis, the stock currently trades at 14.8X versus its peer group's average of 15.9X. Additionally, the stock has a PEG ratio of 0.44. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Centene an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Centene currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Centene fits the bill. Thus, it seems as though Centene shares could have a bit more room to run in the near term.
View the Zacks #1 Rank List
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Centene Corporation (CNC) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Centene (CNC - Free Report) ? Shares have been on the move with the stock up 7.8% over the past month. The stock hit a new 52-week high of $69.63 in the previous session. Centene has gained 68.7% since the start of the year compared to the 2.4% move for the Zacks Medical sector and the 20% return for the Zacks Medical - HMOs industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 28, 2026, Centene reported EPS of $2.51 versus consensus estimate of $0.89 while it beat the consensus revenue estimate by 12.73%.
For the current fiscal year, Centene is expected to post earnings of $4.89 per share on $196.29 in revenues. This represents a 135.1% change in EPS on a 0.77% change in revenues. For the next fiscal year, the company is expected to earn $5.34 per share on $192.58 in revenues. This represents a year-over-year change of 9.19% and -1.89%, respectively.
Valuation Metrics
While Centene has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Centene has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.1X. On a trailing cash flow basis, the stock currently trades at 14.8X versus its peer group's average of 15.9X. Additionally, the stock has a PEG ratio of 0.44. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Centene an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Centene currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Centene fits the bill. Thus, it seems as though Centene shares could have a bit more room to run in the near term.