Centene's third-quarter results included 2% revenue growth, a steady 92.7% medical cost ratio, and adjusted earnings per share of $0.58, well above the FactSet consensus of $0.10. Management raised its adjusted EPS outlook by $0.40 to at least $5.20 in 2026 and said it expects growth in 2027.
Centene represents a countercyclical investment opportunity in managed care, as it can benefit from economic downturns through increasing enrollment in its Medicaid and individual exchange products.
Republicans are taking aim at Centene's Medicaid and individual exchange strongholds as avenues to reduce federal spending, which is cutting into the company's profit prospects.
|
Metric
|
CNC
|
ELV
|
HUM
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.24 | 13.55 | 24.12 |
Price/Book Value | 1.53 | 2.05 | 2.59 |
Price/Sales | 0.17 | 0.46 | 0.34 |
Price/Cash Flow | 10.03 | 17.33 | 18.08 |
|
Metric
|
CNC
|
ELV
|
HUM
|
|---|---|---|---|
Quick Ratio | 1.12 | — | — |
Current Ratio | 1.16 | — | — |
Interest Coverage | 4.03 | 5.33 | 3.37 |
|
Metric
|
CNC
|
ELV
|
HUM
|
|---|---|---|---|
Return on Assets (Normalized) | 4.52% | 5.33% | 3.18% |
Return on Equity (Normalized) | 16.99% | 15.04% | 9.02% |
Return on Invested Capital (Normalized) | 10.77% | 10.32% | 7.08% |
|
1-Day Chart
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Price
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Morningstar Rating for Stocks
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United States