Centene’s trend is to the downside despite solid fundamentals
Centene Corp. (NYSE: CNC) is a healthcare insurance provider that specializes in government-subsidized plans such as Medicaid. The stock has been trending lower since the beginning of December and has not been able to shake its downtrend the way the rest of the market has.
Looking at the daily chart, connecting the highs from December and February we get the upper rail of a downward sloping trend channel. The stock just brushed the upper rail this week and turned lower the next day.
The daily stochastic readings just hit overbought territory and turned lower, causing a bearish crossover from the indicators. We saw a similar scenario in April before the stock dropped over 20%.
The Tickeron AI Prediction tool generated a bearish signal toward Centene on May 8. The signal calls for a decline of at least 2.5% over the next week and it showed a confidence level of 65%. Previous predictions on Centene have been successful 69% of the time.
The fundamentals for Centene are mixed as the earnings and sales growth have been strong, but the management efficiency measurements are below average. Earnings have grown by an average of 29% per year over the last three years while sales have increased at a rate of 31%. Those are both well above average.
The return on equity is at 15.9% and the profit margin is only 3.4%. Both of these figures are below average.
CNC sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for CNC moved above the 200-day moving average on January 30, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CNC's RSI Oscillator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 06, 2026. You may want to consider a long position or call options on CNC as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CNC just turned positive on February 19, 2026. Looking at past instances where CNC's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
CNC moved above its 50-day moving average on February 25, 2026 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 February 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CNC advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where CNC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for CNC entered a downward trend on February 18, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CNC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (1.066) is normal, around the industry mean (3.718). P/E Ratio (9.063) is within average values for comparable stocks, (21.986). CNC's Projected Growth (PEG Ratio) (1.811) is slightly higher than the industry average of (0.950). CNC's Dividend Yield (0.000) is considerably lower than the industry average of (0.026). P/S Ratio (0.110) is also within normal values, averaging (0.614).
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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 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 92, placing this stock worse than average.
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General Information
a multi-line healthcare enterprise
Industry ManagedHealthCare
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