Market Talks with Dr. Stoxx
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 (www.DrStoxx.com). 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.