Centene stock: buy or sell?

CNC stock price: $53.75 -0.57% At close on July 16th, 2019

Updated on:
July 16th, 2019

1

Centene shares slightly fell -0.57% to $53.75 today.

Centene Corporation operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States.

Should I buy Centene stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Centene stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CNC will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Centene stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 11 ratings published for CNC stock in the last month.

The general sentiment of these ratings is bullish for CNC stock, with 9 positive ratings.
Is CNC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-12Morgan Stanleyn/aOverweight
2019-5-10CitigroupNeutralBuy
2019-4-24SunTrust Banksn/aBuy
2019-4-24Morgan StanleyOverweightOverweight
2019-3-29Credit Suisse GroupNeutralNeutral
2019-3-29Argusn/aHold
2019-2-7Jefferies Financial Groupn/aBuy
2019-2-6Oppenheimern/aOutperform
2019-2-28Cowenn/aOutperform
2019-2-27Cantor Fitzgeraldn/aBuy
2019-1-14Stephensn/aOverweight

Centene stock analysis

Daily outlook

Centene shares slightly fell -0.57% to $53.75 today.

Shares of Centene ended today at $53.75 and slightly fell an ugly -0.57%.

CNC stock chart (daily)

Weekly outlook

After boosting a phenomenal 5.56% in a week last week, Centene closed this week at $53.75 and decreased an unpleasant -1.39%. Late June CNC collapsed a hair-raising -7.49% in just one week.

Observing the weekly chart, price is in a simple uptrend, tested $49.96 level and now climbing back aiming its last top at $58.24. Far behind is the all-time high Centene hit early December and since then the price is -27.84% below that top. Since early February, when CNC stock price broke down the 40-weeks moving avarage line, it slid $-12.14 per share (-18.42%). Stocks below the 40w moving average line are usually not recommended for average traders.

CNC stock chart (weekly)

Centene stock price history

Centene IPO was on December 13th, 2001 at $1.19 per share1. Since then, CNC stock surged a 4,416.80%, with a yearly average of 259.80%. If you had invested right after CNC's IPO a $1,000 in Centene stock in 2001, it would worth $44,168.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Centene stock historical price chart

CNC stock reached all-time highs on December with a price of $74.49.

Centene stock price target is $75.20

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 9 price targets for CNC stock:
CNC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-12Morgan StanleyLowers Target$75.00$71.00-5.3%
2019-5-10CitigroupUpgradesn/a$69.00-
2019-4-24SunTrust BanksLowers Targetn/a$80.00-
2019-4-24Morgan StanleyLowers Target$83.00$75.00-9.6%
2019-3-29Credit Suisse GroupLowers Target$76.00$63.00-17.1%
2019-2-7Jefferies Financial GroupReiteratesn/a$76.00-
2019-2-6OppenheimerLowers Target$165.00$83.00-49.7%
2019-2-28CowenInitiatesn/a$77.00-
2019-2-27Cantor FitzgeraldReiteratesn/a$83.00-
(in average)$99.80$75.20-25.0%
The price target for Centene stock is $75.20, moving in a range between $83.00 and $63.00. In average, analysts' outlook on CNC price target is negative, downsizing the forecast by a -25.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Centene was in line with the estimates of the experts and posted an EPS of $0.69 per share. As soon as we get its actual EPS from the earnings report, we will extend this report.
CNC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.44n/a
2017-Q32017-10-241.241.358.9%
2017-Q42018-02-060.930.974.3%
2018-Q12018-04-240.961.0913.5%
2018-Q22018-07-240.880.92.3%
2018-Q32018-10-230.880.891.1%
2018-Q42019-02-050.670.693.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Centene annual sales climbed a super good 24.25% to $60,116.00 million USD from $48,382.00 marked in 2017. Instead, its income margin (compared to sales) remained steady to 1.50%, that is $900.00 million.

CNC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$10,860 M-$161 M1.5%-
2014$16,560 M52.49%$271 M1.6%68.09%
2015$22,760 M37.44%$355 M1.6%31.00%
2016$40,607 M78.41%$562 M1.4%58.31%
2017$48,382 M19.15%$828 M1.7%47.33%
2018$60,116 M24.25%$900 M1.5%8.70%

Quarterly financial results

Centene reported $16,559.00 M in sales for 2018-Q4, a 2.33% up compared to previous quarter. Reported quarter income marked $241.00 M with a profit margin of 1.46%. Profit margin stepped up a 1.34% compared to previous quarter when profit margin was 0.12%. When comparing revenues to same quarter last year, Centene sales marked an exceptional gain and skyrocketed a 29.31%. Looking back to recent quarterly results, Centene posted 5 positive quarters in a row.
CNC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$11,950 M-$254 M2.1%-
2017-Q3$11,900 M-0.42%$205 M1.7%-19.29%
2017-Q4$12,806 M7.61%$230 M1.8%12.20%
2018-Q1$13,194 M3.03%$340 M2.6%47.83%
2018-Q2$14,181 M7.48%$300 M2.1%-11.76%
2018-Q3$16,182 M14.11%$19 M0.1%-93.67%
2018-Q4$16,559 M2.33%$241 M1.5%1,168.42%
2019-Q1$18,444 M11.38%$522 M2.8%116.60%

Centene ownership

When you are planning to invest in a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Centene, 2.40% of all outstanding shares are owned by its staff.

Bearish positions for CNC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Centene:

CNCANTMGTSHUMMOH
Market cap$9.3 B$78.5 B$547.1 M$38.4 B$8.9 B
Total shares173.6 M257.2 M22.2 M135.0 M62.6 M
Float shares407.9 M256.9 M21.3 M134.7 M52.0 M
  - Institutional holdings (%)92.3%91.4%85.6%96.4%106.5%
  - Insider holdings (%)2.4%0.2%2.5%0.2%0.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Centene summary

Tuesday, July 16th, 2019
Open$54.11
Close$53.75
Day range$53.48 - $54.16
Previous close$54.06
Session gain-0.57%
Average true range$1.47
50d mov avg$54.37
100d mov avg$54.97
200d mov avg$60.20
Daily pattern
Weekly pattern lb01a

Centene performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Centene against Anthem, Triple-S Management, Humana, Molina Healthcare and WellCare Health Plans in the following table:
Stock3m6m12m
CNCCentene11.51%-15.10%-20.63%
ANTMAnthem27.78%15.36%24.18%
GTSTriple-S Manageme...18.25%25.84%-34.16%
HUMHumana18.38%-3.40%-9.87%
MOHMolina Healthcare17.68%3.69%33.79%
WCGWellCare Health P...15.11%9.85%13.36%

Centene competitors

We selected a few stocks to conform a list of Centene competitors to watch if you are interested in investing in CNC:

Latest Centene stock news