In the latest trading session, Centene (CNC) closed at $89.74, marking a -1.59% move from the previous day. This change lagged the S&P 500's daily loss of 0.78%. At the same time, the Dow lost 0.88%, and the tech-heavy Nasdaq lost 0.19%.
Prior to today's trading, shares of the healthcare company had lost 2.27% over the past month. This has was narrower than the Medical sector's loss of 5.42% and the S&P 500's loss of 3.4% in that time.
Centene will be looking to display strength as it nears its next earnings release. In that report, analysts expect Centene to post earnings of $1.22 per share. This would mark a year-over-year decline of 3.17%. Meanwhile, our latest consensus estimate is calling for revenue of $35.51 billion, up 9.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.70 per share and revenue of $143.62 billion, which would represent changes of +10.68% and +14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Centene. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Centene is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Centene is currently trading at a Forward P/E ratio of 15.99. This represents a discount compared to its industry's average Forward P/E of 19.11.
It is also worth noting that CNC currently has a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - HMOs was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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