Zacks Research Upgrades Centene (NYSE:CNC) to Strong-Buy

Centene (NYSE:CNC) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday,Zacks.com reports.

Other research analysts also recently issued research reports about the stock. Truist Financial increased their price target on shares of Centene from $71.00 to $78.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. The Goldman Sachs Group reissued a “sell” rating and set a $40.00 price objective on shares of Centene in a research note on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft raised Centene from a “hold” rating to a “buy” rating and raised their price objective for the company from $53.00 to $80.00 in a research note on Wednesday, May 20th. Weiss Ratings reiterated a “sell (d)” rating on shares of Centene in a report on Friday, July 17th. Finally, Mizuho set a $63.00 target price on Centene and gave the company a “neutral” rating in a research report on Monday, June 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $67.00.

Centene Trading Down 1.6%

CNC stock opened at $60.84 on Wednesday. The firm has a fifty day moving average price of $63.81 and a 200 day moving average price of $50.19. Centene has a fifty-two week low of $25.08 and a fifty-two week high of $69.36. The firm has a market cap of $30.05 billion, a PE ratio of -5.83, a price-to-earnings-growth ratio of 0.33 and a beta of 1.07. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.12 and a current ratio of 1.15.

Centene (NYSE:CNC) last released its quarterly earnings data on Tuesday, July 28th. The company reported $2.51 EPS for the quarter, beating the consensus estimate of $1.09 by $1.42. Centene had a negative net margin of 2.51% and a positive return on equity of 12.12%. The business had revenue of $53.58 billion during the quarter, compared to analyst estimates of $47.64 billion. During the same quarter last year, the business earned ($0.16) earnings per share. Centene’s quarterly revenue was up 9.9% compared to the same quarter last year. Centene has set its FY 2026 guidance at 4.800- EPS. Sell-side analysts anticipate that Centene will post 4.95 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Centene

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of Centene by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 56,978,753 shares of the company’s stock valued at $2,344,676,000 after acquiring an additional 190,334 shares in the last quarter. AQR Capital Management LLC grew its stake in Centene by 117.0% in the fourth quarter. AQR Capital Management LLC now owns 31,798,738 shares of the company’s stock worth $1,308,518,000 after purchasing an additional 17,143,904 shares in the last quarter. Geode Capital Management LLC increased its holdings in Centene by 5.5% during the 4th quarter. Geode Capital Management LLC now owns 13,271,492 shares of the company’s stock worth $554,338,000 after purchasing an additional 697,277 shares during the period. Deerfield Management Company L.P. raised its position in Centene by 184.0% during the 3rd quarter. Deerfield Management Company L.P. now owns 9,046,000 shares of the company’s stock valued at $322,761,000 after purchasing an additional 5,860,630 shares in the last quarter. Finally, Morgan Stanley lifted its holdings in shares of Centene by 7.2% in the 4th quarter. Morgan Stanley now owns 9,002,570 shares of the company’s stock worth $370,456,000 after buying an additional 603,585 shares during the period. Institutional investors own 93.63% of the company’s stock.

Key Centene News

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Centene reported adjusted second-quarter EPS of $2.51, well above the $1.09 consensus estimate, while revenue rose 9.9% year over year to $53.58 billion. Margin recovery, cost discipline and stronger Marketplace performance supported the results. Centene Could Be 3% Undervalued After Strong Q2 Earnings And Higher Outlook
• Positive Sentiment: Management raised its 2026 outlook to approximately $4.80 in EPS, citing contained medical costs and continued margin improvement. The guidance increase initially prompted a positive market reaction. Centene Lifts 2026 Outlook as Insurer Contains Medical Costs
• Positive Sentiment: Positive momentum and value assessments continue: Zacks included CNC among its Rank #1 Strong Buy momentum stocks, while other coverage described the shares as potentially undervalued following their substantial recovery. Best Momentum Stock to Buy for July 30th
• Neutral Sentiment: Robert W. Baird raised its price target from $46 to $66 but maintained a Neutral rating, implying limited upside from the current trading level. Centene also announced plans to redeem $500 million of its 2027 notes, reducing future debt obligations. Centene Announces Partial Redemption of 2027 Notes
• Negative Sentiment: The main pressure is concern over declining Medicaid enrollment and the sustainability of the earnings recovery. Investors appear to be treating the improved outlook cautiously because lower membership could weigh on future revenue, while higher medical utilization remains a risk. Oscar Health Flashes Buy Signal As Medicaid Weighs On Centene

About Centene

Centene Corporation (NYSE: CNC) is a diversified, multi-national healthcare enterprise that specializes in providing services to government-sponsored and national health programs. The company primarily acts as a managed care organization, delivering healthcare coverage and administering benefits for Medicaid, the Children’s Health Insurance Program (CHIP), Medicare Advantage, and individual marketplace plans. Centene also contracts with federal and state agencies to manage specialty care programs and community-based services for vulnerable populations.

Centene’s offerings extend beyond traditional insurance to include a range of specialty and support services.