Assessing Centene: Insights From 6 Financial Analysts

In the preceding three months, 6 analysts have released ratings for Centene CNC, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $88.0, a high estimate of $101.00, and a low estimate of $79.00. Marking an increase of 11.96%, the current average surpasses the previous average price target of $78.60.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Centene by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Centene. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Centene compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Centene's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Centene's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Centene analyst ratings.

All You Need to Know About Centene

Centene is a managed-care organization focused on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. Centene served 24 million medical members as of June 2023, mostly in Medicaid (67% of membership), the individual exchanges (14%), and Medicare Advantage (6%) plans. The company also serves traditional Medicare users with its Medicare Part D pharmaceutical program.

Financial Insights: Centene

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Centene's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 10.96%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Centene's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.11%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Centene's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 0.18%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Centene's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.05%, the company showcases efficient use of assets and strong financial health.

Debt Management: Centene's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.73, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.