Centene Corporation (NYSE:CNC) Poised To Stabilize Margins After 2025 Restructuring

Centene enters 2026 carrying a clear operational reset and mixed technical signals that point toward modest near-term upside while fundamentals reflect a company working through recent cost pressures.

Recent News

On January 7, 2026, Cityblock Health and Meridian Health Plan of Illinois, a Centene company, announced a partnership to deliver community-based care to 10,000 Medicaid members across 17 Illinois counties. In December 2025 Centene signed a definitive agreement to divest the remaining Magellan Health businesses and recorded related impairment charges; the company also reported a series of November contributions by Centene subsidiaries and the Centene Foundation to local food banks and community organizations.

Technical Analysis

ADX / DI+ / DI-: ADX at 22.73 indicates an emerging trend strength; both directional indicators trace a reversal pattern (DI+ dip-and-reverse; DI- peak-and-reverse), which together point to a bullish directional shift after prior selling pressure.

MACD: MACD sits at -0.50 with a dip-and-reversal pattern while the signal line sits at -0.35; momentum has started to recover, but MACD remains below its signal line, tempering conviction in sustained bullish momentum until a crossover occurs.

MRO (Momentum/Regression Oscillator): MRO equals -21.52 (negative), indicating the price sits below the modeled target and implies upward potential as the oscillator works back toward zero; the dip-and-reversal in MRO aligns with improving momentum.

RSI: RSI at 54.24 with a dip-and-reverse indicates a mid-range reading that has resumed upward movement, consistent with room for additional near-term gains without being overbought.

Price Vs Moving Averages & Ichimoku: The last close of $43.07 trades above the 20-day average ($40.98), 50-day average ($42.05) and 200-day average ($40.04); the price sits above the Ichimoku cloud (Senkou A $42.26 / Senkou B $39.88), which supports a constructive near-term price bias while volatility remains muted (42‑day volatility 3%).

Bollinger Bands & Volume Context: Price near $43 sits between the 1x and 2x upper Bollinger bands ($43.04 / $45.10) while recent volume of ~4.6M remains below multi-month averages, suggesting follow-through will require renewed participation.

 


Fundamental Analysis

Earnings & Guidance Context: Reported EPS (actual) of -$1.19 versus estimate -$1.22 produced an EPS surprise of +2.46%. Forward EPS stands at $1.03 with a forward P/E of 37.67. WMDST values the stock as under-valued.

Profitability & Growth Metrics: Reported earnings growth metrics vary by period: the provided earnings growth measure reads -338.00% while year-over-year earnings growth shows +567.76%; quarter-over-quarter earnings growth equals -18.06%. Revenue growth reads 0.0% with QoQ and YoY fields at -100.0%, indicating flat-to-declining top-line comparisons in the supplied intervals.

Valuation Multiples: Trailing P/E shows negative -34.63 due to the recent loss; forward P/E of 37.67 sits below the industry peer mean forward P/E of 53.71 and below the peer median of 51.05, while PEG stands at 0.102 with the industry peer mean PEG near 0.194—both metrics indicate forward earnings expectations priced more cheaply versus peer averages.

Capital & Cash: Invested capital reads $-1,654,000,000 and reported cash-flow metrics show zero in the provided cash-flow fields; cost of debt equals 0.961%. These inputs, combined with elevated health benefits ratio pressures reported in the 2025 results, frame ongoing cash deployment and liability management priorities.

Comparisons To Peer Benchmarks: Relative to the industry peer mean for earnings growth (approximately -11.74%) and peer median (approximately -5.27%), the provided earnings-growth figure stands materially lower; use these peer benchmarks only as context for the supplied company metrics.

Valuation Note: WMDST’s under-valued determination reflects forward earnings power (forward EPS $1.03) and a forward P/E below peer mean and median while accounting for recent impairment and divestiture items disclosed in late 2025.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-12-31
REPORT DATE: 2026-02-06
NEXT REPORT DATE: 2026-05-08
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INCOME STATEMENT REVENUE
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COSTS
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PROFITABILITY
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EARNINGS
 EPS Estimate $ -1.22
 EPS Actual $ -1.19
 EPS Difference $ 0.03
 EPS Surprise 2.459 %
 Forward EPS $ 1.03
 
BALANCE SHEET ASSETS
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LIABILITIES
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EQUITY
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VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
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VALUATION
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CAPITAL STRUCTURE
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PRICE-BASED VALUATION
 Price To Book (P/B) —
Price To Book QoQ —
Price To Book YoY —
Price To Book IPRWA —
 Price To Earnings (P/E) -34.628
Price To Earnings QoQ -149.448 %
Price To Earnings YoY -143.95 %
Price To Earnings IPRWA high: 104.977
mean: 77.86
median: 67.666
low: 33.87
CNC: -34.628
 PE/G Ratio 0.102
 Price To Sales (P/S) —
Price To Sales QoQ —
Price To Sales YoY —
Price To Sales IPRWA —
FORWARD MULTIPLES
Forward P/E 37.668
Forward PE/G -0.111
Forward P/S —
EFFICIENCY OPERATIONAL
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ASSET & SALES
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Asset Turnover Ratio QoQ —
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CASH CYCLE
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Cash Conversion Cycle Days QoQ —
Cash Conversion Cycle Days YoY —
Cash Conversion Cycle Days IPRWA high: 33.528
CNC: 0
mean: -1.551
median: -7.057
low: -17.884
CAPITAL DEPLOYMENT
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CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital —
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 Invested Capital $ -1.65 B
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LIQUIDITY
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Quick Ratio QoQ —
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COVERAGE & LEVERAGE
 Debt To EBITDA —
 Cost Of Debt 0.961 %
 Interest Coverage Ratio —
Interest Coverage Ratio QoQ —
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Interest Coverage Ratio IPRWA —
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TIMING / LIQUIDITY
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DIVIDENDS
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PERFORMANCE GROWTH
 Asset Growth Rate —
 Revenue Growth 0.0 %
Revenue Growth QoQ -100.0 %
Revenue Growth YoY -100.0 %
Revenue Growth IPRWA high: 5.835 %
median: 2.743 %
mean: 2.385 %
CNC: 0.0 %
low: -1.677 %
 Earnings Growth -338.0 %
Earnings Growth QoQ -18.061 %
Earnings Growth YoY 567.76 %
Earnings Growth IPRWA high: 40.152 %
median: -5.274 %
mean: -11.737 %
low: -44.776 %
CNC: -338.0 %
MARGINS
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CASH FLOW
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 Free Cash To Net Income —
 Cash Flow Margin 0.0 %
 Cash Flow To Earnings 0.0
VALUE & RETURNS
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Six-Week Outlook

Near-term price action should track improving momentum signals but remain sensitive to volume and confirmation events: technical indicators show an emerging bullish directional shift, MACD momentum recovering though not yet confirming via a signal-line crossover, and MRO suggesting upside potential from below-target pricing. If participation increases, expect a consolidation phase that tests moving-average support near the $41–$42 area while upside opens toward the upper Bollinger band cluster. Continued corporate headlines on the Magellan divestiture progress and operating performance in Medicaid and Marketplace lines should influence directional conviction over the next six weeks.

About Centene Corporation

Centene Corporation (NYSE:CNC) delivers comprehensive healthcare services, primarily targeting under-insured and uninsured populations across the United States. Established in 1984 and based in St. Louis, Missouri, Centene develops a wide array of health plans through its Medicaid, Medicare, and Commercial segments. The Medicaid segment offers expanded health plans, children’s health insurance programs, and long-term services. In the Medicare segment, Centene addresses the needs of seniors with special needs plans, Medicare supplements, and prescription drug plans. The Commercial segment provides marketplace insurance products for individuals and businesses, ensuring extensive access to healthcare services. Centene actively participates in government healthcare contracts, including the TRICARE program for military families, highlighting its dedication to diverse communities. The company also manages clinical healthcare services, pharmacies, and provides dental and speech therapy, promoting a holistic healthcare approach. By collaborating with primary and specialty care physicians, hospitals, and ancillary providers, Centene aims to deliver personalized, high-quality care to millions of Americans, emphasizing innovation and community well-being.



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