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Centene (CNC) Gains But Lags Market: What You Should Know

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Centene (CNC - Free Report) closed at $53.78 in the latest trading session, marking a +0.17% move from the prior day. This change lagged the S&P 500's 0.41% gain on the day. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 0.57%.

Coming into today, shares of the healthcare company had lost 1.36% in the past month. In that same time, the Medical sector gained 2.28%, while the S&P 500 gained 0.1%.

Wall Street will be looking for positivity from CNC as it approaches its next earnings report date. In that report, analysts expect CNC to post earnings of $1.26 per share. This would mark year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.99 billion, up 26.85% from the year-ago period.

CNC's full-year Zacks Consensus Estimates are calling for earnings of $4.37 per share and revenue of $73.26 billion. These results would represent year-over-year changes of +23.45% and +21.87%, respectively.

Any recent changes to analyst estimates for CNC should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. CNC is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, CNC currently has a Forward P/E ratio of 12.28. This represents a discount compared to its industry's average Forward P/E of 14.29.

We can also see that CNC currently has a PEG ratio of 0.91. 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 1.02 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.

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