(CNC) Centene - Ratings and Ratios

Centene Corporation (NYSE:CNC) is a leading healthcare enterprise specializing in providing comprehensive health insurance programs and related services to underserved populations, including low-income families, the uninsured, and commercial organizations across the United States. Since its inception in 1984, the company has grown to become one of the largest Medicaid managed care organizations in the country, with a strong presence in government-sponsored healthcare programs. Centene operates through four distinct business segments: Medicaid, Medicare, Commercial, and Other.

The Medicaid segment is the cornerstone of Centenes operations, offering a wide array of programs tailored to meet the needs of vulnerable populations. These include Temporary Assistance for Needy Families (TANF), Medicaid expansion under the Affordable Care Act (ACA), coverage for aged, blind, or disabled individuals, and the Childrens Health Insurance Program (CHIP). Additionally, this segment provides long-term services and supports (LTSS), foster care services, and Medicare-Medicaid Plans (MMPs) for dual-eligible beneficiaries. Centene also delivers healthcare products and services within this segment, ensuring access to essential care for its members.

The Medicare segment focuses on serving seniors and individuals with special needs through Medicare Advantage plans, Medicare Supplement insurance, and standalone Prescription Drug Plans (PDPs). These offerings are designed to address the healthcare needs of older adults and those with chronic conditions, providing flexibility and affordability in their insurance coverage.

The Commercial segment offers a range of health insurance products through the Affordable Care Act (ACA) marketplace, catering to individuals, small businesses, and large group employers. This segment emphasizes affordability and accessibility, aligning with Centenes mission to reduce healthcare disparities and expand coverage to underserved populations.

The Other segment encompasses a diverse portfolio of healthcare services, including clinical healthcare, pharmacy services, vision and dental care, behavioral health programs, and federal and corporate management services. This segment highlights Centenes commitment to holistic healthcare delivery, addressing the physical, mental, and social determinants of health. The companys extensive network includes primary care physicians, specialty care providers, hospitals, and ancillary healthcare professionals, ensuring comprehensive care coordination for its members.

Headquartered in St. Louis, Missouri, Centene has established itself as a leader in government-sponsored healthcare, leveraging its expertise to navigate the complexities of Medicaid, Medicare, and commercial insurance markets. With a strong focus on innovation and community engagement, Centene continues to expand its reach and improve health outcomes for millions of Americans.

Looking ahead, Centenes stock (NYSE:CNC) is expected to show moderate volatility over the next three months, influenced by both technical and fundamental factors. Technically, the stock is currently trading below its 20-day and 50-day moving averages (SMA 20: 61.33, SMA 50: 59.58) but above its 200-day moving average (SMA 200: 65.25), indicating potential short-term weakness but longer-term stability. The Average True Range (ATR) of 2.09 suggests moderate price fluctuations, with potential resistance near the 61.33 level and support around the 59.58 mark.

From a fundamental perspective, Centenes valuation metrics indicate a relatively attractive position. With a trailing P/E of 9.81 and a forward P/E of 8.46, the stock appears undervalued compared to its peers in the managed healthcare sector. The price-to-book (P/B) ratio of 1.16 and price-to-sales (P/S) ratio of 0.21 further highlight its undervaluation. Additionally, Centenes return on equity (RoE) of 12.51% reflects strong profitability and efficient use of shareholder capital. These factors, combined with the companys robust market position and growing revenue streams, suggest a positive outlook for the stock in the coming months.