Saint Louis, Missouri-based Centene Corporation (CNC) is a healthcare enterprise that provides programs and services to under-insured and uninsured families, and commercial organizations. Valued at a market cap of $27.6 billion, the company operates across all 50 states and serves millions of members with a focus on accessible, affordable, and high-quality healthcare. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and CNC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the healthcare plans industry. The company excels in providing cost-effective, community-based care that is culturally sensitive and locally tailored, giving it a competitive edge in underserved markets. As the largest Medicaid managed care organization in the U.S., it has a well-diversified membership base and operates efficiently at scale.

This healthcare company is currently trading 31.1% below its 52-week high of $80.59, reached on Sep. 3, 2024. CNC has fallen 6.6% over the past three months, outpacing the Health Care Select Sector SPDR Fund’s (XLV) 8.1% downtick during the same time frame.

However, in the longer term, CNC has declined 20.5% over the past 52 weeks, lagging behind XLV’s 7.7% drop over the same time frame. Moreover, on a YTD basis, shares of CNC are down 8.4%, compared to XLV’s 1.4% loss.   

To confirm its bearish trend, Centene has been trading below its 200-day moving average since early October, 2024, and has remained below its 50-day moving average since late May. 

On Apr. 25, Centene’s shares plunged 6.3% after its Q1 earnings release, despite delivering a better-than-expected performance. The company’s revenue improved 15.4% year-over-year to $46.6 billion and exceeded the consensus estimates by 7.2%. Moreover, its adjusted EPS of $2.90 advanced 28.3% from the year-ago quarter and came in 22.9% above analyst estimates. However, a decline in total membership primarily due to lower Medicaid membership might have raised investor concerns and led to its downward stock price movement. 

Centene has considerably lagged behind its rival, Molina Healthcare, Inc.’s (MOH) 4% decline over the past 52 weeks and 1.6% rise on a YTD basis. 

Looking at CNC’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 18 analysts covering it, and the mean price target of $75.19 suggests a 35.5% premium to its current price levels.