Centene Corp is one of the dominant players in the Healthcare services. Presently their valuation of the stock is $38 billion. With approximately 22 million members, Centene is the largest provider of government-sponsored health plans in the United States.
Across the country, the company employs more than 33,000 people. In 29 states, it has health plans for 12.3 million members. The company is also offering health insurance to other commercial and healthcare organizations.
After the last year’s $16.6 billion rising by 14%, the stock’s fourth-quarter revenue was $18.9 billion. The data has exceeded the expert’s forecasts of $18.43 billion.
Nevertheless, Centene’s medical benefit ration, which the percentage of health insurance premiums paid out in claims, was higher than the investors expected. When in reality, it reached 88.4% and thus negatively impacted the company’s medical costs, the analysts of Wall Street estimated 87.6%.
The main reason for that is trading at a relatively low price just now. Gary Taylor is a J.P. Morgan’s analyst. He pointed out that last year the Centene bought WellCare for $17 billion. It will most probably boost the stock’s long-term value.
Due to the nearing presidential elections, the United States economy might face some uncertainties. Nevertheless, experts think that this stock can manage to weather it all without significant losses.
Setting it at $88, Taylor raised Centene’s price target. Over the next year, investors will gain 33% if the goal is met. As managed care penetration of Medicaid grows from 68% of spending towards 75-80% during the next decade, the analysts believe that the stock is destined to rise further.
Also, other Wall Street analysts are sharing the sentiment seemingly. Most of them agree that Centene is the strong-buy at $80.54, with the average target angling to 24% upside. CNC’s organic opportunity is remaining above-average for the sector.
Nevertheless, presently the Centene Corp is trading at a relatively low price. Until it rises again, experts are recommending grabbing the company’s shares.
The recent report of Centene’s was quite good. Moreover, Centene’s medical benefit ratio was higher than the investors expected.
All in all, it now seems that the company is in excellent shape. They are on the right track.
Many of the countries are using their healthcare system. It has quite good offers and benefits for its clients. Centene is equipped with modern technologies and professional staff.
So let’s hope that the company will continue the unbeaten run.