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 MACD Histogram just turned negative
CNC saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on July 06, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CNC moved out of overbought territory on June 11, 2026. 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 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 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 .
CNC broke above its upper Bollinger Band on July 01, 2026. 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 30, 2026. 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CNC advanced for three days, in of 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 214 cases where CNC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 (1.546) is normal, around the industry mean (4.990). P/E Ratio (9.063) is within average values for comparable stocks, (49.585). Projected Growth (PEG Ratio) (1.293) is also within normal values, averaging (1.408). CNC's Dividend Yield (0.000) is considerably lower than the industry average of (0.019). P/S Ratio (0.167) is also within normal values, averaging (0.682).
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 90, placing this stock worse than average.
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General Information
a multi-line healthcare enterprise
Industry ManagedHealthCare
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