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Valued at a market cap of $21.3 billion, Centene Corporation (CNC) is a managed care company that provides programs and services to under-insured families and commercial organizations. The Saint 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 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 plan industry. The company distinguishes itself with a "locally-led" strategy, utilizing regional brands and teams to deliver integrated, cost-effective care that addresses social determinants of health and unique community needs.
This healthcare company has slipped 44.2% from its 52-week high of $66.03, reached on Apr. 8, 2025. Shares of CNC have declined 4.3% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 3.8% drop during the same time frame.
Moreover, on a YTD basis, shares of CNC are down 10.1%, compared to NASX’s 2.1% fall. In the longer term, CNC has fallen 37.7% over the past 52 weeks, notably lagging behind NASX’s 30.2% uptick over the same time frame.
To confirm its bearish trend, CNC has been trading below its 200-day and 50-day moving averages since early March.
On Feb. 6, CNC shares plunged 3.7% after its Q4 earnings release. The company’s total revenue increased 21.9% year-over-year to $49.7 billion, surpassing consensus estimates by 3.1%. Meanwhile, its adjusted loss per share came in at $1.19, down from an adjusted profit of $0.80 per share reported in the year-ago quarter, but ahead of analyst expectations of a loss of $1.25 per share.
CNC has outperformed its rival, UnitedHealth Group Incorporated (UNH), which declined 41.2% over the past 52 weeks and 14.5% on a YTD basis.
Given CNC’s recent underperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 20 analysts covering it, and the mean price target of $45.35 suggests a 24.6% premium to its current price levels.
