Conservative Momentum Pick: Centene (CNC)

Market Talks with Dr. Stoxx


Centene Corporation

Index: S&P 500

Market Cap: $13.1B

Centene works with governments to provide quality health care to those with little or no insurance. It is a component of the S&P500, and has recently shown up on our "Conservative Momentum" stock screen. It is currently one of the selections among our "Top 3 Conservative Momentum Stocks" listed in The Momentum Letter ( The stock is undervalued, trading at under 19x earnings and 14x forward earnings per share, on only 0.3x sales revenues. The company boasts a 5 year sales growth record of 51% per year and 720% growth in the last quarter. Current analyst consensus is 1.9 and a price target of 82.41.

The chart below shows a recent breakout above the 75 resistance level with a high base forming. This signals that another leg higher is immanent. We consider shares of Centene to be both an attractive trade and long-term hold.

Posted to Dr. Stoxx Options Letter on May 09, 2017 — 1:05 PM
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