This health insurer has also recently been recommended by Zacks, due to earnings and cash flow growth, as well as rising estimates.
Centene Corporation (CNC)
From AlphaProfit Sector Investors’ Newsletter
Centene Corporations’ (CNC) proposed purchase of WellCare Health Plans is back on track after competitor Humana walked away from buying Centene. The Centene-WellCare combination, owned 71% by Centene shareholders, would be the largest Medicaid insurer. The deal is expected to close in the first half of 2020, subject to Justice Department and state regulatory approvals.
Centene has the opportunity to create sizeable value by lowering costs of the combined entity. Its shares interest growth-at-a-reasonable-price investors. They trade at 11.7X forward EPS versus prospects for 18% EPS growth in the next 12 months. (Next earnings: July 23) Nancy’s Note: Centene beat earnings estimates by $0.10 per share, posting EPS of $1.34.
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, July 2019