Centene Stock: A Deep Dive Into Analyst Perspectives (8 Ratings)

Across the recent three months, 8 analysts have shared their insights on Centene CNC, expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $82.25, along with a high estimate of $91.00 and a low estimate of $52.00. Highlighting a 7.06% decrease, the current average has fallen from the previous average price target of $88.50.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Centene among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Centene compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Centene's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Centene's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Centene analyst ratings.

Discovering Centene: A Closer Look

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 September, mostly in Medicaid (about 60% of membership), the individual exchanges (about 20%), and Medicare Advantage (about 5%). The company also serves traditional Medicare users with its Medicare Part D pharmaceutical program and has a military contract.

Centene's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Centene displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 10.46%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Centene's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 1.7%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Centene's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.61% ROE, the company effectively utilizes 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 0.86%, the company showcases efficient use of assets and strong financial health.

Debt Management: Centene's debt-to-equity ratio is below the industry average. With a ratio of 0.64, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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