Yahoo Finance Here's How Much a $1000 Investment in Centene Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Centene (CNC) ten years ago? It may not have been easy to hold on to CNC for all that time, but if you did, how much would your investment be worth today?
Centene's Business In-Depth
With that in mind, let's take a look at Centene's main business drivers.
Centene Corporation is a well-diversified healthcare company that primarily provides a set of services to the government sponsored healthcare programs. The company serves the under-insured and uninsured individuals through member-focused services. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
Centene offered healthcare services to around 28 million members across 50 states as of Sep 30, 2023. The acquisition of WellCare Health leveraged the company’s position as the largest Medicaid managed care organization in the country. The company retained its market-leading position nationwide, serving 27.1 million members at the end of 2022.
Through a diversified product portfolio and expanding geographic reach, Centene continues to deliver results by executing on its strategy, growing premium and service revenues profitably. This is evidenced by organic growth within its existing operations, new Medicaid contracts, new contract awards in innovative healthcare services, key acquisitions to enhance its medical management platform and participation in Health Insurance Marketplaces. Centene acquired Health Net on Mar 24, 2016 which became its wholly owned subsidiary.
Centene offers affordable and high-quality products to nearly 1 in 15 individuals across the nation. Founded as a single health plan in Wisconsin in 1984, Centene has established itself as a national leader in healthcare services.
Following certain divestments and strategic initiatives, the company changed its segments to Medicaid, Medicare, Commercial and Other. The Commercial segment incorporates the Health Insurance Marketplace and other commercial healthcare products. The Other segment comprises the pharmacy business, vision and dental services, clinical healthcare, behavioral health, international operations and other operations.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Centene a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in November 2013 would be worth $5,071.76, or a gain of 407.18%, as of November 24, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 152.48% and the price of gold went up 53.90% over the same time frame.
Analysts are anticipating more upside for CNC.
Centene’s top line has been witnessing consistent growth. It expects revenues to be within $149-$151 billion in 2023. It boasts an impressive inorganic growth strategy for expanding to new markets. Contract wins are expanding its medical membership base. Centene also does not shy away from selling non-core assets to focus on growing its more profitable Managed Care business. Its 2023 earnings outlook of at least $6.60 per share indicates a 14% YoY increase. Even though its shares have underperformed the industry in the past year, things are likely to improve in the future due to growing operating strength. However, escalating operating expenses have been weighing on its margins. We expect adjusted SG&A costs to rise 9% YoY in 2023. A high debt level reflects inadequate financial flexibility. As such, the stock warrants a cautious stance.
The stock is up 8.96% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Centene Corporation (CNC) : Free Stock Analysis Report
