Opinions
The Panic-Proof Portfolio (Stockchase Research)
Centene
CNC-N
PAST TOP PICK
Apr 11, 2024
Stock price when the opinion was issued
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CNC provides healthcare to under-insured families and military personnel in the US. Healthcare is a sector expected to grow for years to come as the population ages. It trades at 1.6x book and 17x earnings. Cash reserves are growing as stock is aggressively bought back and debt is retired. We recommend placing a stop-loss at $63, looking to achieve $88 -- upside potential of 20%. Yield 0%
(Analysts’ price target is $88.33)We reiterate CNC, a provider of healthcare to under-insured families and military personnel in the US as a TOP PICK. It continues to build cash reserves, while retiring debt and buying back shares. It trades at 16x earnings, under 2x book and supports a 10% ROE. We recommend trailing up the stop (from $63) to $72, looking to achieve $90 — upside potential of 16%. Yield 0%
(Analysts’ price target is $89.64)
Our PAST TOP PICK with CNC has triggered its stop at $72. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 5%, when combined with our previous recommendation.