Centene (NYSE:CNC) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Centene to “Strong Buy” from “Hold,” although the broader analyst consensus remains “Hold” with an average price target of $67.
• Centene reported strong quarterly results, with EPS of $2.51 versus the $1.09 estimate and revenue of $53.58 billion, up 9.9% year over year. Management raised its 2026 EPS outlook to approximately $4.80.
• Despite improving earnings and margins, investors remain cautious because of declining Medicaid enrollment and potential pressure from higher medical utilization.

Centene (NYSE:CNC - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Other equities analysts also recently issued research reports about the stock. Raymond James Financial set a $75.00 price objective on shares of Centene in a report on Tuesday, July 7th. TD Cowen reiterated a "hold" rating and issued a $65.00 price target (up from $47.00) on shares of Centene in a research report on Tuesday, July 14th. Oppenheimer lifted their price target on shares of Centene from $58.00 to $67.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 27th. Royal Bank Of Canada boosted their price objective on shares of Centene from $70.00 to $71.00 and gave the company a "sector perform" rating in a research report on Thursday, July 9th. Finally, Morgan Stanley set a $66.00 price objective on Centene in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $67.00.

Centene Stock Performance

Shares of CNC opened at $60.84 on Wednesday. The firm has a market capitalization of $30.05 billion, a P/E ratio of -5.83, a PEG ratio of 0.33 and a beta of 1.07. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.15 and a quick ratio of 1.12. Centene has a one year low of $25.08 and a one year high of $69.36. The business has a fifty day moving average of $63.81 and a 200 day moving average of $50.19.

Centene (NYSE:CNC - Get Free Report) last posted its earnings results on Tuesday, July 28th. The company reported $2.51 earnings per share for the quarter, beating analysts' consensus estimates of $1.09 by $1.42. The company had revenue of $53.58 billion for the quarter, compared to the consensus estimate of $47.64 billion. Centene had a positive return on equity of 12.12% and a negative net margin of 2.51%.Centene's revenue was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.16) earnings per share. Centene has set its FY 2026 guidance at 4.800- EPS. As a group, sell-side analysts anticipate that Centene will post 4.95 EPS for the current year.

Institutional Investors Weigh In On Centene

Institutional investors have recently added to or reduced their stakes in the stock. DV Equities LLC bought a new position in shares of Centene during the fourth quarter worth $26,000. IFC & Insurance Marketing Inc. bought a new stake in Centene in the 4th quarter valued at $28,000. SBI Securities Co. Ltd. lifted its stake in Centene by 118.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 749 shares of the company's stock worth $31,000 after purchasing an additional 406 shares in the last quarter. Bayban purchased a new stake in Centene in the 4th quarter worth $33,000. Finally, MV Capital Management Inc. bought a new position in shares of Centene during the 4th quarter valued at about $34,000. 93.63% of the stock is owned by hedge funds and other institutional investors.

Centene News Roundup

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Centene reported adjusted second-quarter EPS of $2.51, well above the $1.09 consensus estimate, while revenue rose 9.9% year over year to $53.58 billion. Margin recovery, cost discipline and stronger Marketplace performance supported the results. Centene Could Be 3% Undervalued After Strong Q2 Earnings And Higher Outlook
• Positive Sentiment: Management raised its 2026 outlook to approximately $4.80 in EPS, citing contained medical costs and continued margin improvement. The guidance increase initially prompted a positive market reaction. Centene Lifts 2026 Outlook as Insurer Contains Medical Costs
• Positive Sentiment: Positive momentum and value assessments continue: Zacks included CNC among its Rank #1 Strong Buy momentum stocks, while other coverage described the shares as potentially undervalued following their substantial recovery. Best Momentum Stock to Buy for July 30th
• Neutral Sentiment: Robert W. Baird raised its price target from $46 to $66 but maintained a Neutral rating, implying limited upside from the current trading level. Centene also announced plans to redeem $500 million of its 2027 notes, reducing future debt obligations. Centene Announces Partial Redemption of 2027 Notes
• Negative Sentiment: The main pressure is concern over declining Medicaid enrollment and the sustainability of the earnings recovery. Investors appear to be treating the improved outlook cautiously because lower membership could weigh on future revenue, while higher medical utilization remains a risk. Oscar Health Flashes Buy Signal As Medicaid Weighs On Centene

About Centene

Centene Corporation NYSE: CNC is a diversified, multi-national healthcare enterprise that specializes in providing services to government-sponsored and national health programs. The company primarily acts as a managed care organization, delivering healthcare coverage and administering benefits for Medicaid, the Children's Health Insurance Program (CHIP), Medicare Advantage, and individual marketplace plans. Centene also contracts with federal and state agencies to manage specialty care programs and community-based services for vulnerable populations.

Centene's offerings extend beyond traditional insurance to include a range of specialty and support services.

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