|Bid||66.61 x 900|
|Ask||66.67 x 800|
|Day's Range||66.08 - 67.41|
|52 Week Range||41.62 - 68.64|
|Beta (5Y Monthly)||0.90|
|PE Ratio (TTM)||21.29|
|Earnings Date||Apr 20, 2020 - Apr 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||81.21|
Wall Street analysts’ wealth of experience and in-depth knowledge of the market can help investors determine whether to add a new name to a portfolio. Additionally, the use of technical indicators and fundamentals can point the direction of a stock’s near-term trajectory. Another way, though, is to gauge the sentiment amongst fellow investors. As the old saying goes, imitation is the sincerest form of flattery.TipRanks’ Stock Screener has a set of filters which allows you to search out a stock according to your needs, be it by market cap, analyst consensus or various other metrics. In our case, we searched for three tickers boasting “very positive” sentiment from top TipRanks investors – a readout of individual investor portfolios tracked by TipRanks on its Smart Portfolio platform.What’s more, in addition to piquing investors’ interest, all 3 have a further characteristic in common; all currently score a Strong Buy consensus rating from the Street. Let’s explore, then, why investors and analysts alike, are finding these names so compelling right now.Centene Corp (CNC)With a market-cap of $38 billion, Centene has established itself as a major player in healthcare services. The large cap has more than 33,000 employees across the country, has health plans that serve 12.3 million members in 29 states and offers health insurance to other healthcare and commercial organizations. With roughly 22 million members, Centene is the largest provider of government-sponsored health plans.The company’s recent earnings results were a mixed affair. Centene’s Q4 revenue came in at $18.9 billion, 14% up from last year’s $16.6 billion, while also beating the analysts' estimate of $18.43 billion. The company’s higher-than-expected medical benefit ratio (the percentage of health insurance premiums paid out in claims), though, was a disappointment for investors. At 88.4%, the figure came in higher than the Street’s estimate of 87.6% and impacted the company’s medical costs.Nevertheless, J.P. Morgan’s Gary Taylor believes CNC trades at a discount to its group. Multiple overhangs including the election, block grant and public charge, according to the analyst, “will all likely prove immaterial.” Taylor also believes Centene’s acquisition of WellCare for $17 billion in March of last year will lead to further long -term value creation.The 4-star analyst further said, “We believe that CNC remains a long-term growth story as managed care penetration of Medicaid grows from ~68% of spending towards 75-80% over the next decade. We believe CNC’s organic opportunity (primarily fueled by its Medicaid and Medicare exposure) certainly remains above-average for the sector.”Bottom line, then? Taylor reboots his rating on Centene with an Overweight along with a price target of $88. Should the target be met, investors stand to take home a 33% gain over the next year. (To watch Taylor’s track record, click here)Overall, the healthcare service specialist is getting a lot of healthy love from the Street right now. 13 Buys and a single Hold converge to a Strong Buy consensus rating. At $80.54, the average target implies possible upside of 24%.CNC has a ‘Very Positive’ investor sentiment with the number of portfolios holding CNC rising on both a 1 week and 1-month basis. (See Centene stock analysis on TipRanks)Applied Materials (AMAT)Next up is a fellow large cap, though from an entirely different sector. Semi-conductor company Applied Materials makes integrated circuit chips for a wide range of electronics, including TVs, smartphones and flat panel display screens. The $61 billion heavyweight’s robust start to 2020 is a direct continuation of 2019’s stellar performance; last year’s gains of 90% have been boosted by a further 9% year-to-date.As per expectations, AMAT’s latest earnings results delivered a strong quarter and guidance. F1Q20’s revenue of $4.16 billion indicated a quarter-over-quarter increase of 11% and beat the Street’s estimate of $4.11 billion. At $0.98, EPS came in above the high end of the company's $0.87-0.95 guidance and above the Street’s call for $0.93. Looking ahead, galvanized by a continued robust foundry/logic business and the return of some memory spending, AMAT expects to see "strong double-digit" growth in its semiconductor business this year.Deutsche bank’s Sidney Ho applauded the print and notes the guide would have been even stronger without the estimated $300 million impact of the coronavirus on its operations. Ho said, “AMAT continues to benefit from a robust foundry/logic environment and with this strength expected to continue throughout CY20, early signs of a memory recovery, and expectations for continued share gains, the company appears well positioned for a strong CY20… Post earnings, we remain encouraged by AMAT's near and long-term outlook and believe that the risk-reward for AMAT, which trades at ~12x (including pending acquisition) vs. its large cap peers at 1415x, is favorable.”The 5-star analyst, therefore, keeps his Buy rating intact, while raising his price target up from the previous $72 to $75. The new figure implies possible upside of 15% from current levels. (To watch Ho’s track record, click here)It turns out that the rest of the Street wholeheartedly agrees with the Deutsche bank analyst. With 19 "buy" ratings vs. 1 "sell" and 1 "hols," the message is clear: AMAT is a Strong Buy. Possible gains of 17% could be heading investors’ way should the average price target of $75.71 be met over the coming months.In addition, based on top investor portfolios in TipRanks’ database, 6.9% hold AMAT stock. On average, top investors allocate 3.7% of their portfolios to AMAT. This gives the stock its ‘Very Positive’ investor sentiment score. (See AMAT stock analysis on TipRanks)Microchip (MCHP)Staying in the semi-conductor field, we come across another big player in the shape of Microchip. This company does what it says on the tin: Sells microcontrollers, analog, and field-programmable gate array [FPGA] chips to a wide array of customers.With earnings season in full swing, Microchip has been posting results, too. The solid quarter exhibited a beat on revenue and earnings: MCHP reported sales of $1.29 billion, compared to the $1.26 billion estimated by the street. NonGAAP EPS came in at $1.32, above the street’s estimate of $1.26. For the current quarter, MCHP expects revenue of $1.36 billion, guiding above the street’s call for $1.33 billion.Needham’s Rajvindra Gill sees “multiple inflection points in MCHP's business.” The 5-star analyst notes the company has seen a continuation of strong backlog and bookings trends. Additionally, Gill notes MCHP’s ongoing strength in data center and industrial and auto, all recovering from a bottom, with the trends expected to continue in 2HCY20.Gill summarized, “We could envision an optimistic scenario where we see an inventory restocking, given the historical low levels of distribution inventory, combined with genuine demand pull through driven by data center, ADAS, industrial IoT and 5G. While lead times may extend, we do think MCHP has built enough capacity to support a return in demand. In that environment, we believe revenue could return to pre-downturn levels and grow from there. Moreover, we believe MCHP is on track to hit its LT GM target of 63% (vs. 61.7% MRQ) as the $16MM underutilization charges roll-off the P&L. Net, we see upside at current levels as we roll out our new FY22 Non-GAAP estimates."As a result Gill reiterated a Buy rating on MCHP shares, while raising his price target to $140 (from $130). The implication for investors? Potential upside movement of 30%. (To watch Gill’s track record, click here)The consensus breakdown provides further cheer; 15 Buys and 2 Holds coalesce to a Strong Buy consensus rating. With an average price target of $123.13, analysts expect an additional 15% to be added to the share price over the next year.Furthermore, 2.4% of all portfolios hold MCHP, with 0.2% being added in the last month alone. Top investors allocate, on average, 1.7% of their portfolio to the chipmaker’s stock. (See Microchip stock analysis on TipRanks)
Shares of several health care companies rose Tuesday, to buck the broader stock market selloff, after Deutsche Bank analyst George Hill said the “muddled” race for the Democratic nominee suggests the political threats to health-care reform are fading.
It's never easy to marry companies that seem to exist in different industries. This is especially true if a buyer is on what looks like the "failing" side of the equation.Source: Jonathan Weiss / Shutterstock.com That's the case for CVS Health (NYSE:CVS).Net income of $1.7 billion, $1.73 per share, on revenue of $66.9 billion beat analyst estimates by 5 cents per share. Those numbers even beat the company's own projections.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis didn't cause investors to rush into the stock. That's because results from other health insurers, most notably UnitedHealth Group (NYSE:UNH), looked better. The jury is still out, one reporter wrote, on whether combining a company that takes healthcare premiums with one that sells healthcare services makes sense.No, it isn't. Could be WalgreensDon't compare CVS to UNH, which has been walking down the managed care road for years, or Centene (NYSE:CNC), built to serve Medicare and Medicaid patients. Compare it to Walgreens Boots Alliance (NASDAQ:WBA), the other major drug store chain. * 20 Stocks to Buy From the Law of Accelerating Returns There's no comparison. Over the last year CVS stock is up 8.6%, mid-way between the gains of UNH and CNC. Walgreens is down 25.1%.Cynics will say CVS' results only looked good because it sold more drugs and charged higher prices for branded drugs. They will say CVS only bought Aetna, a major health insurer, for $69 billion to lower its costs.But CVS didn't buy Aetna to lower drug costs. CVS bought Aetna so it could match the income from premiums to the outgo of healthcare spending. The income is now starting to flow. Revenue for the entire company was up 32% over a year ago, representing Aetna premiums. The shift of claims into CVS is still ongoing.There are other benefits to CVS from getting into insurance. The repeal of the Health Insurance Fee (HIF) will flow through to CVS, through Aetna. More to ComeWhat remains to be seen is how competitive Aetna can be, now that more benefits are being served through CVS stores. CVS MinuteClinics can now handle 80% of what a primary care physician can treat, often with no copay or reduced costs.CVS is building on that by turning 1,500 stores into HeathHUBs, selling services as well as products. The plan is for the new stores to add incremental business from Walgreens. It also makes Aetna more attractive, by lowering out-of-pocket costs. Stores that have converted to the new format outperform traditional CVS stores, the company said on its conference call.CVS is now projecting earnings between $7.04 and $7.17 per share in 2020. Based on the stock's Feb. 13 opening price of $73.45, that's a forward price-to-earnings ratio of barely 10. The 50 cent per share dividend also pays a yield of 2.7%. By way of comparison, the yield on UNH is 1.5%. The Bottom Line on CVS StockIt's true that CVS is trying to become more like UnitedHealth. It's becoming less like Walgreens. CVS is aiming to be a low-cost leader in managed care for the private insurance market.That's good news for both income and growth investors.For income investors, you're already getting a better yield on a new CVS investment than on any managed care stock. For growth investors, you are still getting in early on the transition.Managed care is the model for all insurers going forward. This is true whether they're taking money from government, corporations or individuals. You can't have an unlimited draw from a limited pool of funds. That's the road CVS Health has embarked on.Dana Blankenhorn is a financial and technology journalist. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn. As of this writing he owned shares in CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Income and Growth Investors Will Benefit as CVS Adopts Managed Care appeared first on InvestorPlace.
When looking for the best stocks to buy and watch, focus on those with rising relative price strength. One stock that fits that bill is Centene, which had its Relative Strength (RS) Rating upgraded from 78 to 84 Thursday. Centene has climbed more than 5% past a 61.38 entry in a first-stage cup with handle, meaning it's now out of a proper buy zone.
Centene Corporation (NYSE: CNC) today issued a reminder that it will provide its consolidated 2020 annual guidance, including WellCare Health Plans, Inc. (WellCare), after the close of trading on Tuesday, March 3, 2020, and host a conference call on Wednesday, March 4, 2020 at approximately 8:30 a.m. (Eastern Time). Michael F. Neidorff, Chairman, President and Chief Executive Officer, and Jeffrey A. Schwaneke, Executive Vice President and Chief Financial Officer, of Centene Corporation will host the call.
Shares of health insurers charged higher Wednesday, as Bernie Sanders’ victory in the New Hampshire primary was seen as increasing the odds that President Trump will be re-elected, which Wall Street views as a positive for insurers, as well as the broader stock market.
Wall Street's main indexes hit record highs on Wednesday on optimism that the coronavirus epidemic will be contained and as Bernie Sanders cemented his front-runner status in the race of the Democratic nomination.
Shares of health insurers surged in morning trading Wednesday, as the New Hampshire primary victory by Bernie Sanders, who proposes Medicare for All, was seen as bolstering the chances that Donald Trump will win re-election. UnitedHealth Group Inc.'s stock shot up $12.13, or 4.2%, to pace the Dow Jones Industrial Average's gainers, putting it on track for a record close. The price gain was adding about 82 points to the Dow, which was up 191 points. Among other insurers, shares of Cigna Corp. rallied 4.0%, Anthem Inc. hiked up 4.6%, Humana Inc. climbed 4.0% and Centene Corp. advanced 4.4%. On Tuesday, Raymond James analysts wrote that a Sanders nomination or a contested Democratic convention "increases the likelihood of a Trump victory, and potentially even an all-Republican government," which they said would be good for the broader stock market.
The U.S. government on Wednesday proposed an increase of 0.93% on average in its 2021 payments to the health insurers that manage Medicare Advantage insurance plans for about 22 million people aged 65 or older or disabled. The government will finalize the rate in April. UnitedHealth Group Inc, Humana Inc, Anthem Inc, CVS Health Corp and Centene Corp are among the largest players in the Medicare Advantage market in which private insurers are paid a set rate by the government to manage member healthcare.
Centene Corporation (NYSE: CNC) ("Centene" or the "Company") announced today that it has priced its offering of $2,000,000,000 aggregate principal amount of 3.375% of new senior notes due 2030 (the "Notes").
In his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer again sat down with Michael Neidorff, chairman and CEO of Centene Corp. , the health plan provider with shares that are up over 50% in just the past four months. Neidorff said that Centene is still not a household name, but they are a $100 billion company and have $7 billion in organic growth. In the daily bar chart of CNC, below, we can see that prices turned sharply higher in early October when the broad market soared.
Centene Corporation (NYSE: CNC) ("Centene" or the "Company") announced today that it has commenced an offering to sell $2,000,000,000 of senior notes due 2030 (the "Notes"), subject to market and other conditions.
U.S. stocks surged on Tuesday and the S&P 500 and Nasdaq were on pace to unwind losses from last week as fears of a heavy economic impact from the coronavirus epidemic tapered off after China's central bank intervened for the second day. "If China is doing what it needs to contain the worst-case scenario from a financial perspective, then maybe the weakness we saw last week was a little overdone," said Willie Delwiche, investment strategist at Baird. The Nasdaq was just shy of a record high.
Recent acquisitions and growth in the health insurance marketplace business helped Clayton-based managed care provider Centene add members and revenue in 2019.
The iShares U.S. Healthcare Providers ETF (IHF) appeared to be off to a fine start to 2020. With the Iowa Democratic caucus scheduled for Monday and Vermont Sen. Bernie Sanders, a supporter of Medicare For All surging in the polls, markets are becoming concerned about the near-term outlook for managed care providers, the companies residing in IHF. IHF is a traditional index fund that targets U.S. equities in the healthcare providers sector.
Wall Street's main indexes were set to open sharply higher on Tuesday, marking a second day of recovery from a coronavirus-driven sellfoff last week, with fresh intervention by China's central bank calming investor nerves. In a bid to cushion the economic blow of the epidemic, China injected 1.7 trillion yuan ($242.74 billion) via reverse repos on Monday and Tuesday, helping Chinese stocks reverse some losses and lifting the world equity index. The monetary intervention boosted investor sentiment even as several economists cut their forecasts for 2020 global growth, with the spread of coronavirus showing no signs of slowing.
U.S. stock index futures jumped 1% on Tuesday, signaling a recovery for Wall Street from a sharp coronavirus-led pullback last week, with fresh intervention by China's central bank calming investor nerves. In a bid to cushion the economic blow of the epidemic, China injected 1.7 trillion yuan ($242.74 billion) via reverse repos on Monday and Tuesday, helping Chinese stocks reverse some losses and lifting the world equity index. The monetary intervention boosted investor sentiment even as several economists cut their forecasts for 2020 global growth as the death toll from the outbreak mounts and business operations in China remain suspended.
NEW YORK, NY / ACCESSWIRE / February 4, 2020 / Centene Corp. (NYSE:CNC) will be discussing their earnings results in their 2019 Fourth Quarter Earnings to be held on February 4, 2020 at 8:30 AM Eastern ...