Centene Stock Hovers Near Highs Prior to Earnings

Centene will release earnings tomorrow morning -- last July, the stock fell after earnings

Jul 23, 2018 at 11:40 AM
facebook X logo linkedin

Centene Corp (NYSE:CNC) came within pennies of a new all-time high earlier, topping out at exactly $136, following a bull note out of Barclays. An analyst there began coverage with an "overweight" rating and $158 price target, expecting the insurance name to maintain its strong Medicaid market share over the next three years. This target represents more than 16% upside from CNC's current price of $135.91, and it's deep into record-high territory.

Coming into 2018, CNC stock looked like a name that could take off, and it hasn't disappointed, now up more than 34% year-to-date -- delivering profits to subscribers along the way. And data from Schaeffer's Senior Quantitative Analyst Rocky White says it still could be a good time to buy calls on Centene, since it has a low Schaeffer's Volatility Index (SVI) -- 24.7%, in the 11th annual percentile -- and is trading near a 52-week high. There have been five other times since 2008 when the equity was sporting a similar combo of low volatility expectations and technical outperformance, and it averaged a one-month gain of 3% after those signals.

centene stock price

What makes this setup even more interesting is the fact that the company will be reporting second-quarter earnings before the open tomorrow. Looking back at its earnings history, the stock has moved lower the day after earnings in three of the past four quarters, including a 2.6% decline in April, and a 1.6% drop last July.

On the one hand, analysts seem very bullish on CNC, with 10 of 14 in coverage saying to buy. Still, the stock's average 12-month price target of $140.32 isn't pricing in much upside, so if Centene does impress with earnings there's at least potential for price-target hikes from analysts.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI