On August 12, 2026, Centene Corp CNC shares rose 3.4% to a current price of $67.07, trading within a 52-week range of $25.28 to $69.36. This recent upward movement contributes to a year-to-date increase of 63.0% and a remarkable 156.3% over the past year. The stock has shown a slight decline of 0.4% over the past month and a modest increase of 0.7% over the last three years.
- GF Valueâ„¢ verdict: Current price is $67.07, compared to a GF Valueâ„¢ of $78.59, indicating a 14.7% undervaluation.
- GF Scoreâ„¢ of 74/100 signifies that CNC falls into the "Above Average" category, reflecting a relatively favorable assessment.
- Most notable signal: Insiders sold $5.2 million worth of stock in the last three months, with no insider buying activity reported.
Is CNC Overvalued or Undervalued?
Currently, Centene Corp's stock trades at $67.07, which is 14.7% below its GF Valueâ„¢ of $78.59. GF Valueâ„¢ is GuruFocus' proprietary estimate of a stock's intrinsic value, calculated based on historical trading multiples, past business performance, and future growth expectations. While this suggests a potential opportunity for value investors, it's essential to approach this reading with caution, particularly given that earnings-based valuations such as Price-to-Earnings (P/E) multiples are not applicable to Centene Corp. The company is unprofitable and cash-flow negative, which diminishes the reliability of earnings metrics as a valuation tool.
The GF Valuation label indicates that the stock is "Modestly Undervalued." However, it is crucial to consider the earnings situation when evaluating the margin of safety; the lack of profits raises questions about the sustainability of any potential upside. Thus, while the stock appears undervalued based on GF Valueâ„¢, investors must remain cautious due to the company's unprofitable status.
How Does CNC's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| 5-Year Median P/E | 16.1x | 16.1x |
| Forward P/E | 16.1x | N/A |
The current P/E ratio, which stands at 16.1x, aligns with its 5-year median P/E of 16.1x, suggesting that the stock is trading at its historical valuation level. This analysis supports the GF Valueâ„¢ verdict, as it indicates that Centene's valuation based on earnings multiples does not signal a significant departure from historical norms, despite the company's ongoing profitability challenges.
What Does CNC's GF Scoreâ„¢ Tell Us?
GF Scoreâ„¢ is a comprehensive measure that evaluates a stock's performance based on various factors, including financial strength, profitability, growth potential, valuation, and momentum. Centene Corp's GF Scoreâ„¢ of 74/100 reveals an above-average performance, with notable strengths and weaknesses across different sub-ranks.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 74/100 |
| Financial Strength | 7/10 |
| Profitability | 7/10 |
| Growth | 3/10 |
| Valuation | 8/10 |
| Momentum | 6/10 |
The strongest areas for Centene are its Financial Strength and Profitability, both rated at 7/10, indicating a solid financial base and reasonable profitability metrics relative to its peers. However, the weakest area is its Growth rank, rated at just 3/10, reflecting concerns about the company's ability to generate consistent growth amid its unprofitable status. Overall, while the GF Scoreâ„¢ indicates a generally positive outlook, the weaknesses in growth could pose challenges moving forward.
What Are Gurus and Insiders Doing with CNC?
Currently, 11 gurus hold Centene Corp's stock, with 8 of them increasing their positions and 5 reducing their holdings in recent quarters. This indicates a generally optimistic sentiment among institutional investors, given the net additions to positions. Importantly, the insider activity is noteworthy; insiders sold $5.2 million worth of stock in the last three months without any buying activity reported, which may signal a lack of confidence in the company's near-term prospects or a strategic reallocation by those in management.
This pattern of selling without any insider buying could raise red flags for potential investors. While guru ownership suggests a level of confidence in the stock, insider selling might imply caution about the company's future, particularly in light of its unprofitability and cash-flow issues.
What This Means for Investors
Based on the analysis of GF Valueâ„¢, Centene Corp appears to be modestly undervalued at a current price of $67.07 relative to its GF Valueâ„¢ of $78.59. However, the company's unprofitable status raises concerns about the reliability of earnings-based valuations and introduces risks that investors should carefully consider. The insider selling activity further complicates the picture, suggesting caution despite the positive sentiment from gurus. Overall, while there may be an opportunity based on valuation, prospective investors should proceed with caution due to the company's financial challenges.
For further insights, you can explore the Centene Corp CNC stock page to stay updated on the latest performance and metrics.
Frequently Asked Questions
What is CNC's GF Scoreâ„¢?
CNC's GF Scoreâ„¢ is 74/100, indicating an above-average performance based on various financial metrics.
Is CNC overvalued or undervalued?
According to GF Valueâ„¢, CNC is currently undervalued at a price of $67.07, compared to a fair value estimate of $78.59.
What is CNC's P/E ratio?
CNC's current P/E ratio is 16.1x, which aligns with its 5-year median P/E, indicating it is trading at a historical valuation level despite its ongoing profitability challenges.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
