Zacks Investment Research·2d ago
Centene (CNC) is a Top-Ranked Momentum Stock: Should You Buy?Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Centene is emerging from a severe underwriting cycle, with the combined ratio improving to 96.9% in Q2 2026 from a peak of 114.0% in Q3 2025, signaling a return to profitability. However, the earnings recovery appears heavily reliant on favorable prior period ...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has been erratic, with Q2 2026 revenue declining 9.0% year-over-year to $44.4B, yet the combined ratio improved to 96.9% from 114.0% in Q3 2025, driven by a loss ratio of 89.6% and favorable reserve development.
Centene's stock has experienced a significant decline, reaching near decade-lows. This depressed valuation, coupled with positive catalysts, suggests substantial upside potential, with some analyses indicating the stock could potentially double, returning to previous trading ranges.
Anticipated increases in Affordable Care Act (ACA) rates are expected to drive a significant earnings rebound in 2026. Early state approvals suggest average price hikes of approximately 27% for Centene's ACA business, which could substantially improve ACA margins and revenues.
Centene is expected to benefit from normalized utilization trends in its insurance pools. The company has implemented initiatives such as an ABA task force and clinical management programs to improve efficiency, with a key indicator being the Medicaid Health Benefits Ratio (HBR) remaining at or below 93.7% in Q1 2026.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 28, 2026 | $2.51+130.3% vs $1.09 | $53.6B+12.5% vs $47.6B |
Q2 2026 Apr 28, 2026 | $3.37+51.1% vs $2.23 | $49.9B+5.1% vs $47.5B |
Q1 2026 Feb 6, 2026 | -$1.19+2.5% vs -$1.22 | $49.7B+2.7% vs $48.4B |
Q4 2025 Oct 29, 2025 | $0.50+445.4% vs -$0.14 | $49.7B+4.1% vs $47.7B |
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Centene NYSE: CNC reaffirmed its 2026 adjusted diluted earnings-per-share guidance of more than $4.80 at the Deutsche Bank Healthcare Summit, with Chief Executive Officer Sarah London saying the company's performance through the first two months of the third quarter was in line with expectations.
eHealth says surging 2027 health costs are pushing smaller employers toward ICHRAs, potentially expanding individual coverage demand.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Benchmark CNC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Centene Corp. (CNC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $63.28 | $31.26B | -4.65 | 19.44% | -3.43% | -28.66% | — | |
| $191.19 | $9.98B | 21.43 | 11.75% | -0.02% | -0.17% | — | |
| $372.95 | $338.69B | 28.19 | 11.81% | 3.14% | 13.49% | — | |
| $402.43 | $87.27B | 16.02 | 12.62% | 2.47% | 11.2% | — | |
| $371.93 | $44.65B | 37.80 | 10.06% | 0.88% | 6.89% | — | |
| $87.10 | $111.13B | 62.66 | 7.85% | 1.18% | 6.41% | — |
Centene Corp. (CNC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Centene Corp. (CNC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 17, 2026·SEC
Jul 29, 2026·SEC
Jul 28, 2026·SEC
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Centene Corp. (CNC) stock FAQ — growth, dividends, profitability & financials explained
Centene Corp. (CNC) grew revenue by 19.4% over the past year. This is strong growth.
Centene Corp. (CNC) reported a net loss of $5.10B for fiscal year 2025.
Centene Corp. (CNC) has a return on equity (ROE) of -28.7%. Negative ROE indicates the company is unprofitable.
Centene Corp. (CNC) has a combined ratio of 103.9%. A ratio above 100% means claims and expenses exceed premiums.
