Back to top

Is Centene (CNC) a Great Value Stock Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Centene (CNC - Free Report) is a stock many investors are watching right now. CNC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.05. This compares to its industry's average Forward P/E of 15.89. CNC's Forward P/E has been as high as 19.04 and as low as 13.08, with a median of 16.35, all within the past year.

CNC is also sporting a PEG ratio of 0.93. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CNC's PEG compares to its industry's average PEG of 1.16. Over the past 52 weeks, CNC's PEG has been as high as 1.36 and as low as 0.87, with a median of 1.10.

We should also highlight that CNC has a P/B ratio of 2.26. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.54. Over the past 12 months, CNC's P/B has been as high as 2.96 and as low as 2.08, with a median of 2.64.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Centene is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CNC feels like a great value stock at the moment.

In-Depth Zacks Research for the Tickers Above

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

Centene Corporation (CNC) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in