Evaluating Centene: Insights From 7 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Centene CNC in the last three months.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Centene, revealing an average target of $91.0, a high estimate of $101.00, and a low estimate of $85.00. Observing a downward trend, the current average is 0.44% lower than the prior average price target of $91.40.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive Centene. The following summary outlines 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Centene compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Centene's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Centene's market position. Stay informed and make data-driven decisions with the assistance of 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.

Unraveling the Financial Story of Centene

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Centene showcased positive performance, achieving a revenue growth rate of 10.96% as of 31 December, 2023. This reflects 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 ROE excels beyond industry benchmarks, reaching 0.18%. This signifies robust financial management and efficient use of shareholder equity capital.

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 stands notably higher than the industry average, reaching 0.73. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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