With a market cap of $36.7 billion, Centene Corporation (CNC) is a managed care company that provides healthcare programs and services to under-insured families and commercial organizations across the United States. It operates through Medicaid, Medicare, Commercial, and Other segments, offering a wide range of services including health insurance, specialty care, pharmacy services, and behavioral health support.
Shares of the Saint Louis, Missouri-based company have surpassed the broader market over the past 52 weeks. CNC stock has climbed 101.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 8.2%. Moreover, the stock has surged 80.2% on a YTD basis, compared to SPX's 7.4% return.
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In addition, shares of Centene have outpaced the State Street Health Care Select Sector SPDR ETF's (XLV) nearly 27% increase over the past 52 weeks.
www.barchart.com Centene shares rose 1% on Oct. 27 after the company raised its 2026 adjusted EPS forecast to above $5.20 and projected further earnings growth in 2027, building on an updated baseline of $4.70 per share. The company lowered its full-year medical cost ratio forecast to 90.4% - 91.1% and its Q3 ratio of 92.7% came in below the analyst estimate, reflecting improved pricing in Obamacare plans and better Medicare Advantage performance.
Centene also reported Q3 2026 adjusted EPS of $0.58, or $0.16 excluding certain severance costs versus the $0.10 estimate, and said its Medicare Advantage business was on track to break even in 2026, a year earlier than previously expected.
For the fiscal year ending in December 2026, analysts expect CNC's adjusted EPS to climb 153.4% year-over-year to $5.27. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 12 “Holds,” and one “Strong Sell.”
www.barchart.com This configuration has remained unchanged over the past three months.
On Sept. 11, BofA raised its Centene price target to $80 and maintained a “Buy" rating.
The mean price target of $75.42 represents a 1.7% premium to CNC’s current price levels. The Street-high price target of $87 suggests a 17.3% potential upside.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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