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Centene Corporation (CNC) Hits Fresh High: Is There Still Room to Run?
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A strong stock as of late has been Centene (CNC - Free Report) . Shares have been marching higher, with the stock up 17% over the past month. The stock hit a new 52-week high of $77.05 in the previous session. Centene has gained 84.7% since the start of the year compared to the 11.4% move for the Zacks Medical sector and the 27.3% return for the Zacks Medical - HMOs industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 27, 2026, Centene reported EPS of $0.58 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 7.63%.
For the current fiscal year, Centene is expected to post earnings of $5.26 per share on $199.96 in revenues. This represents a 152.88% change in EPS on a 2.66% change in revenues. For the next fiscal year, the company is expected to earn $5.55 per share on $195.95 in revenues. This represents a year-over-year change of 5.65% and -2%, 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 has run ahead of itself.
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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22X. On a trailing cash flow basis, the stock currently trades at 16.2X versus its peer group's average of 16.8X. Additionally, the stock has a PEG ratio of 0.45. 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 #2 (Buy) thanks to a solid earnings estimate revision trend.
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 passes the test. Thus, it seems as though Centene shares could have potential in the weeks and months to come.
How Does CNC Stack Up to the Competition?
Shares of CNC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Humana Inc. (HUM - Free Report) . HUM has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Humana Inc. beat our consensus estimate by 22.35%, and for the current fiscal year, HUM is expected to post earnings of $9.12 per share on revenue of $161.28 billion.
Shares of Humana Inc. have gained 5.3% over the past month, and currently trade at a forward P/E of 45.76X and a P/CF of 17.35X.
The Medical - HMOs industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CNC and HUM, even beyond their own solid fundamental situation.
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Centene Corporation (CNC) Hits Fresh High: Is There Still Room to Run?
A strong stock as of late has been Centene (CNC - Free Report) . Shares have been marching higher, with the stock up 17% over the past month. The stock hit a new 52-week high of $77.05 in the previous session. Centene has gained 84.7% since the start of the year compared to the 11.4% move for the Zacks Medical sector and the 27.3% return for the Zacks Medical - HMOs industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 27, 2026, Centene reported EPS of $0.58 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 7.63%.
For the current fiscal year, Centene is expected to post earnings of $5.26 per share on $199.96 in revenues. This represents a 152.88% change in EPS on a 2.66% change in revenues. For the next fiscal year, the company is expected to earn $5.55 per share on $195.95 in revenues. This represents a year-over-year change of 5.65% and -2%, 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 has run ahead of itself.
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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22X. On a trailing cash flow basis, the stock currently trades at 16.2X versus its peer group's average of 16.8X. Additionally, the stock has a PEG ratio of 0.45. 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 #2 (Buy) thanks to a solid earnings estimate revision trend.
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 passes the test. Thus, it seems as though Centene shares could have potential in the weeks and months to come.
How Does CNC Stack Up to the Competition?
Shares of CNC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Humana Inc. (HUM - Free Report) . HUM has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Humana Inc. beat our consensus estimate by 22.35%, and for the current fiscal year, HUM is expected to post earnings of $9.12 per share on revenue of $161.28 billion.
Shares of Humana Inc. have gained 5.3% over the past month, and currently trade at a forward P/E of 45.76X and a P/CF of 17.35X.
The Medical - HMOs industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CNC and HUM, even beyond their own solid fundamental situation.