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What do the Fundamentals Predict for Centene Corp (CNC) Stock?

Wednesday, February 28, 2024 03:18 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for Centene Corp (CNC) Stock?

Centene Corp (CNC) receives a strong valuation ranking of 100 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. CNC has a better value than 100% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 100
CNC gets a 100 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CNC!

Metrics Analysis

CNC has a trailing twelve month Price to Earnings (PE) ratio of 16.91 which places it around the histroical average of roughly 15. CNC is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. CNC's trailing-12-month earnings per share (EPS) of 4.91 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
CNC's 12-month-forward PE to Growth (PEG) ratio of 1 is considered a roughly average value as the market is valuing CNC right in line with its projected earnings growth. CNC's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

CNC's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. CNC's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Centene Corp (CNC) stock.

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