Centene (CNC) Hits New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Centene ( CNC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Centene as such a stock due to the following factors:

  • CNC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.4 million.
  • CNC has traded 87,863 shares today.
  • CNC is trading at a new lifetime high.

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More details on CNC:

Centene Corporation provides multi-line healthcare programs and services in the United States. It operates in two segments, Managed Care and Specialty Services. CNC has a PE ratio of 28.0. Currently there are 7 analysts that rate Centene a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Centene has been 746,300 shares per day over the past 30 days. Centene has a market cap of $5.8 billion and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 6.5% with 6.79 days to cover. Shares are up 64.7% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Centene as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • CNC's very impressive revenue growth greatly exceeded the industry average of 19.9%. Since the same quarter one year prior, revenues leaped by 55.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 50.56% and other important driving factors, this stock has surged by 65.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • CENTENE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CENTENE CORP increased its bottom line by earning $2.85 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($4.40 versus $2.85).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 67.3% when compared to the same quarter one year prior, rising from $49.37 million to $82.62 million.
  • Net operating cash flow has significantly increased by 237.98% to $441.85 million when compared to the same quarter last year. In addition, CENTENE CORP has also vastly surpassed the industry average cash flow growth rate of -20.32%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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