Centene hits upper rail of channel ahead of earnings
Healthcare provider Centene (NYSE: CNC) provides programs and services to under-insured and uninsured individuals in the United States. The company is set to release third quarter earnings results on October 22, but the stock ran in to some resistance ahead of the report.
The daily chart shows that the stock has been trending lower over the last five months with a trend channel forming that defines the various cycles within the trend. The stock hit the upper rail of the channel on October 19 and then turned lower on October 21. The chart also shows that the stochastic readings were in overbought territory and made a bearish crossover on the 21st.
If we look at the weekly chart it shows that the downward trend extends all the way back to August 2018. It also shows a longer term trend channel that connects the highs over the past year.
The stock just moved out of oversold territory on the weekly chart, but there is potential resistance just overhead at the 13-week moving average.
In addition to the bearish signal from the daily stochastic crossover, the Tickeron Trend Prediction engine generated a bearish signal for Centene on October 18. The prediction showed a confidence level of 89% and calls for a decline of at least 4% within the next month. Past predictions for the stock have been accurate 77% of the time.
Looking at the fundamentals for the company, Tickeron’s ratings show three separate measures where Centene ranks below average. The Tickeron Price Growth Rating for Centene is 67, indicating slightly worse than average price growth. CNC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for Centene is 79, pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents. A rating of 1 indicates highest PE growth while a rating of 100 indicates lowest PE growth.
The Tickeron Valuation Rating of 81 indicates that the company is slightly overvalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.
Analysts expect Centene to report earnings of $0.95 for the third quarter on revenue of $18.43 billion. In the third quarter of 2018 the company earned $0.89 on revenue of $16.18 billion. This means earnings are expected to grow by 6.7% and revenue is expected to grow by 13.9%. Those growth rates are far below the rates from last quarter and the last three years.
The sentiment toward Centene is mixed ahead of the earnings report. There are 17 analysts following the stock at this time with 15 “buy” ratings and two “hold” ratings. This puts the buy percentage at 88.2% and that is far more bullish than the average stock. On the other hand, the short interest ratio is at 7.1 and that indicates far more bearish sentiment than the average stock.
CNC in +9.72% Uptrend, advancing for three consecutive days on September 11, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where CNC advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 09, 2025. You may want to consider a long position or call options on CNC as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
CNC moved above its 50-day moving average on September 09, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CNC crossed bullishly above the 50-day moving average on September 11, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 180 cases where CNC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CNC moved out of overbought territory on September 12, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CNC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CNC broke above its upper Bollinger Band on September 09, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CNC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.596) is normal, around the industry mean (4.092). P/E Ratio (8.073) is within average values for comparable stocks, (17.152). Projected Growth (PEG Ratio) (0.971) is also within normal values, averaging (0.893). CNC's Dividend Yield (0.000) is considerably lower than the industry average of (0.023). P/S Ratio (0.094) is also within normal values, averaging (0.662).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CNC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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a multi-line healthcare enterprise
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