The St. Louis-based company will replace London-based driller Ensco (ESV) which has been pressured by declining oil prices.
Specifically, Centene will be added to the S&P 500 Global Industry Classification Standard (GICS) Managed Health Care Sub-Industry Index, the S&P 500 announced last Thursday.
Also joining the S&P 500 will be medical device maker Hologic (HOLX), which will take the place of Pepco Holdings (PEP).
Shares of Centene are retreating 2.37% to $62.25 on Monday.
Overall, U.S. stocks were struggling for gains today as investors kept a close watch on oil prices, and as they await data and comments from key Federal Reserve officials later in the week, CNBC reports.
Centene operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the U.S.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, notable return on equity, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
You can view the full analysis from the report here: CNC