Centene Corporation (NYSE:CNC) Positions For Margin Improvement Into Early 2026

Centene enters the short term with mixed operational strain but detectable momentum toward margin stabilization; near-term upside hinges on improving medical-cost metrics alongside modest technical bullish signals.

Recent News

On February 6, 2026 the company reported large fourth-quarter and full-year 2025 losses driven by elevated medical costs and a $6.7 billion goodwill impairment; management signaled margin improvement actions and set preliminary adjusted EPS targets for 2026. Market commentary and trading updates in late February highlighted short-term volatility and recent intraday underperformance versus peers, with trading volumes below recent averages on several sessions.

Technical Analysis

Directional indicators show a weak trend environment: ADX at 16.77 indicates no established trend, limiting conviction for a sustained breakout or breakdown. The ADX reading tempers both bullish and bearish technical claims and suggests range trade susceptibility.

DI+ registered 23.87 with a peak-and-reversal pattern, which signals bearish pressure as the positive directional movement has rolled over. Concurrently, DI− sits at 28.88 and shows a decreasing trend; that decline in DI− reduces bearish pressure, producing a mixed directional picture that favors short-term chop rather than a clear trend.

MACD stands at −0.01 with the MACD line increasing and trading above its signal line (signal −0.19); despite a negative absolute reading, the MACD cross constitutes a bullish momentum shift and supports the possibility of near-term upside continuation if momentum holds.

MRO at −22.64 indicates the current price sits below the oscillator’s target, implying potential upside toward the regression target; however, the MRO trend displays a peak-and-reversal pattern, which tempers that potential by signaling a recent loss of momentum.

RSI near 53.84 reads neutral but shows a peak-and-reversal; the neutral magnitude avoids overbought/oversold extremes, yet the reversal hints at fading bullish conviction and greater sensitivity to negative catalysts in the immediate term.

Price behavior relative to moving averages favors a mild bullish bias: the close at $42.69 sits above the 200-day average of $39.59 and roughly aligns with the 50-day average at $42.49; the 12-day EMA ( $42.19 ) and 26-day EMA ( $42.18 ) both trend higher, supporting a short-term upward tilt. Bollinger band width remains moderate (20-day stdev $2.17) with the 1× and 2× upper bands at $43.30 and $45.46 respectively, providing defined near-term resistance levels. Low beta (42-day 0.08; 52-week 0.17) reduces sensitivity to broad market moves, favoring stock-specific drivers for directional moves.

 


Fundamental Analysis

Earnings metrics reflect a challenging 2025 but measurable beats versus consensus: reported EPS of $−1.19 compared with an estimate of $−1.22 represents an EPS surprise of +2.46%. The company recorded a significant full-year loss in 2025 alongside large noncash impairments; management commentary points to margin remediation steps for 2026.

Profitability and growth signals diverge: GAAP PE sits negative at −34.63 due to the reported loss, while forward EPS of $1.03 produces a forward PE of 37.67. WMDST notes this divergence when framing near-term valuation and risk—current negative trailing earnings distort traditional PE comparison, while the forward PE embeds management’s recovery assumptions.

Revenue and earnings growth show mixed periodic patterns: revenue growth reads 0.0% on the provided figure, with quarter-over-quarter and year-over-year revenue change listed as −100.00% each (data states −1.0 for QoQ and YoY); reported earnings growth shows −338.00% on the headline figure with an earnings growth QoQ of −18.06% but earnings growth YoY of 567.76%. Treat extreme QoQ/YoY magnitudes with operational context—one-time impairments and membership mix shifts drove large percentage swings in the period under review.

Capital efficiency and liquidity indicators carry caveats: invested capital registers $‑1,654,000,000 (negative sign present in the data), cash conversion metrics from peers suggest a broad range but the provided cash flow margin and cash-flow-to-earnings read 0.0% in the supplied figures, and cost of debt sits at 0.96%, indicating low borrowing costs on reported debt balances.

Valuation context versus peer ratios (industry peer metrics supplied): the PEG ratio sits at 0.10245 (10.25% when expressed as a percentage) versus an industry peer mean of 0.19466 (19.47%); that places Centene below the industry peer mean on PEG. Forward PE of 37.67 compares to an industry peer forward PE mean near 53.71 (when applicable), placing Centene’s forward valuation below the industry peer mean on a forward basis. WMDST values the stock as under-valued based on the firm’s internal framework and the combination of forward earnings and remediation expectations.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-12-31
REPORT DATE: 2026-02-06
NEXT REPORT DATE: 2026-05-08
CASH FLOW  Begin Period Cash Flow
 Operating Cash Flow
 Capital Expenditures
 Change In Working Capital
 Dividends Paid
 Cash Flow Delta
 End Period Cash Flow
 
INCOME STATEMENT REVENUE
 Total Revenue
 Forward Revenue
COSTS
 Cost Of Revenue
 Depreciation
 Depreciation and Amortization
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income
 Interest Expense
 Net Interest Income
 Income Before Tax
 Tax Provision
 Tax Rate
 Net Income
 Net Income From Continuing Operations
EARNINGS
 EPS Estimate -1.22
 EPS Actual -1.19
 EPS Difference 0.03
 EPS Surprise 2.459 %
 Forward EPS 1.03
 
BALANCE SHEET ASSETS
 Total Assets
 Intangible Assets
 Net Tangible Assets
 Total Current Assets
 Cash and Short-Term Investments
 Cash
 Net Receivables
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt
 Total Current Liabilities
 Net Debt
 Total Debt
 Total Liabilities
EQUITY
 Total Equity
 Retained Earnings
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share
 Shares Outstanding
 Revenue Per-Share
VALUATION
 Market Capitalization
 Enterprise Value
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R
CAPITAL STRUCTURE
 Asset To Equity
 Asset To Liability
 Debt To Capital
 Debt To Assets
Debt To Assets QoQ
Debt To Assets YoY
Debt To Assets IPRWA
 Debt To Equity
Debt To Equity QoQ
Debt To Equity YoY
Debt To Equity IPRWA
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
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio
Asset Turnover Ratio QoQ
Asset Turnover Ratio YoY
Asset Turnover Ratio IPRWA
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
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
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital
 Net Invested Capital
 Invested Capital -1.65 B
 Net Tangible Assets
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 0.961 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
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
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF)
 Free Cash Flow Yield
Free Cash Flow Yield QoQ
Free Cash Flow Yield YoY
Free Cash Flow Yield IPRWA
 Free Cash Growth
Free Cash Growth QoQ
Free Cash Growth YoY
Free Cash Growth IPRWA
 Free Cash To Net Income
 Cash Flow Margin 0.0 %
 Cash Flow To Earnings 0.0
VALUE & RETURNS
 Economic Value Added
 Return On Assets (ROA)
Return On Assets QoQ
Return On Assets YoY
Return On Assets IPRWA
 Return On Capital Employed (ROCE)
 Return On Equity (ROE)
Return On Equity QoQ
Return On Equity YoY
Return On Equity IPRWA
 DuPont ROE
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Near term, momentum indicators (MACD cross above its signal, rising short-term EMAs) favor limited upside toward the upper Bollinger band near $43–$45 if management’s remediation comments persist in market messaging. ADX below 20 and mixed DI signals limit trend durability; expect range-bound action punctuated by stock-specific news on medical-cost trends or regulatory developments. Fundamentals show a transition from large impairments and a 2025 loss toward a forward EPS profile that allows upside if medical-cost ratios improve; watch for confirmation from sequential fundamental releases and any updated guidance ahead of the next report date on 2026-05-08.

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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