With a market value of $21.3 billion, Centene Corporation (CNC) is a managed care company that provides programs and services to insured households and commercial organizations. The St. Louis, Missouri-based company focuses on managing health plans for Medicaid and Medicare beneficiaries, as well as providing insurance solutions through the health insurance marketplace.
Companies valued at $10 billion or more are generally classified as “large-cap stocks,” and CNC fits the label perfectly, with its market cap exceeding that threshold, indicating its size, influence, and dominance in the healthcare industry. The company differentiates itself with a “local leadership” strategy, leveraging local brands and teams to deliver integrated, affordable care that addresses the social determinants of health and unique community needs.
The healthcare company is down 44.2% from its 52-week high of $66.03 on April 8, 2025. Shares of CNC are down 4.3% over the past three months, while the Nasdaq Composite ($NASX) is down 3.8% over the same time frame.
Additionally, on a YTD basis, CNC shares are down 10.1%, compared to the NASX’s 2.1% decline. In the long term, CNC has fallen 37.7% over the past 52 weeks, notably lagging behind the NASX’s 30.2% rise over the same time frame.
To confirm its price trend, CNC has been trading below its 200-day and 50-day moving averages since early March.
On February 6, CNC shares fell 3.7% following the release of Q4 earnings. The company’s total revenue rose 21.9% year over year to $49.7 billion, beating consensus estimates by 3.1%. Meanwhile, adjusted loss per share came in at $1.19, down from an adjusted profit of $0.80 per share in the year-ago quarter, but ahead of analysts’ expectations for a loss of $1.25.
CNC has outperformed its rival, UnitedHealth Group Inc. ( UNH ), which has declined 41.2% over the past 52 weeks and is down 14.5% on a YTD basis.
Given CNC’s recent poor performance, analysts are cautious about its prospects. The stock has a consensus rating of “Hold” from the 20 analysts that cover it, and an average price target of $45.35 suggests a 24.6% premium to its current price level.
As of the date of publication, Niharika Jain held no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
