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    Assessing Centene’s (CNC) Valuation After a Sharp 3-Month Rebound and Ongoing Share Price Weakness

    Simply Wall St·12/06/2025 01:36:39
    語音播報

    Centene (CNC) has quietly drifted lower this week, even after a strong past 3 months. That disconnect is catching some investors’ attention as they reassess what the recent rebound really implies.

    See our latest analysis for Centene.

    Even with a sharp 32.3% 3 month share price rebound, the stock is still nursing a heavy year to date share price loss, and multi year total shareholder returns remain deeply negative. This suggests sentiment is stabilising rather than fully turning bullish.

    If Centene has you rethinking your healthcare exposure, it could be worth scanning other potential opportunities across healthcare stocks to see how peers and adjacent names are lining up on growth and resilience.

    With earnings rebounding but the share price still far below past highs and only a small discount to analyst targets, the key question now is simple: is Centene a contrarian opportunity, or is future growth already priced in?

    Most Popular Narrative: 4% Undervalued

    With Centene last closing at $38.34 against a narrative fair value of $39.94, the current share price sits just below that intrinsic marker, framing a tight valuation gap that investors are now dissecting more closely.

    Bullish analysts point to sustained margin recovery in Marketplace and Medicaid as the key driver of outsized EPS growth over 2026 and 2027, arguing that recent pricing actions and rate refilings are now better aligned with risk adjustment mechanics and evolving risk pools, and that updated FY25 and early 2026 commentary supports a multi year earnings re rating story.

    Read the complete narrative.

    Curious how modest revenue growth, slim but improving margins and a lower forward multiple can still add up to a higher fair value? The most followed narrative leans heavily on stable earnings power and disciplined share count reduction to bridge that gap. Want to see the exact assumptions behind those future profits and why they justify a richer valuation than today?

    Result: Fair Value of $39.94 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, policy uncertainty around ACA subsidies and volatile Medicaid medical costs could quickly undermine margin recovery hopes and force analysts to revisit today’s assumptions.

    Find out about the key risks to this Centene narrative.

    Build Your Own Centene Narrative

    If you see things differently or want to stress test the numbers yourself, you can build a custom view in minutes: Do it your way.

    A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Centene.

    Looking for more investment ideas?

    Before you move on, you may wish to explore focused stock ideas from the Simply Wall St screener so that potential opportunities do not slip past you.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.