Centene Corp (CNC) Stock Analysis
Verdict: BUY
Medicaid rate repricing and ACA margin recovery drive rapid EPS normalization, offset by ongoing Medicaid membership attrition.
Investment score: 68/100
Analysis as of
Is Centene Corp stock worth reviewing? AI model thesis
Centene's core Medicaid and Marketplace businesses are undergoing a profitable turnaround as rate adjustments realign with post-redetermination member acuity, driving strong free cash flow and a forward P/E discount to peers.
7-factor investment score
- Valuation: 78/100 (weight 20%)
- Financial Health: 72/100 (weight 15%)
- Technical Momentum: 68/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 70/100 (weight 15%)
Centene Corp opportunities and risks
What speaks for CNC
- Medicaid Rate Repricing Re-aligns with Member Acuity
What speaks against CNC
- Medicaid Membership Attrition Over-Shoots Expectations
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CNC | n/a | 0.2x | n/a | 16.1% | -2.6% | 27.9% |
| UNH | 24.3x | 0.8x | 15.0x | 22.5% | 3.1% | 6.9% |
| ELV | 18.2x | 0.4x | 13.7x | 39.0% | 2.5% | 7.1% |
| HUM | 35.5x | 0.3x | 17.2x | 13.7% | 0.9% | -1.0% |
| MOH | 1236.2x | 0.2x | 25.0x | 34.6% | -0.0% | 2.6% |
| HQY | 33.8x | 5.8x | 18.4x | 75.2% | 17.4% | 6.0% |
| Peer median | 33.8x | 0.4x | 17.2x | 34.6% | 2.5% | 6.0% |
Frequently asked questions about Centene Corp (CNC)
Is CNC stock a good investment?
The cached TradeMates AI model rates Centene Corp as BUY with an investment score of 68/100. Centene's core Medicaid and Marketplace businesses are undergoing a profitable turnaround as rate adjustments realign with post-redetermination member acuity, driving strong free cash flow and a forward P/E discount to peers. This is algorithmic model output, not personal investment advice.
Is CNC stock a buy?
The TradeMates model verdict for CNC is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.