Centene Corporation (CNC), headquartered in Saint Louis, Missouri, operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, and commercial organizations. Valued at $31.3 billion by market cap, the company’s specialty services include medicaid and medicare health plans, treatment compliance, and nurse triage.

Shares of this largest Medicaid managed care organization have underperformed the broader market over the past year. CNC has declined 17.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 8.6%. However, in 2025, CNC stock is up 3.9%, surpassing SPX’s 4.3% decline on a YTD basis. 

Narrowing the focus, CNC’s underperformance is also apparent compared to the iShares U.S. Healthcare Providers ETF (IHF). The exchange-traded fund has dropped about 4.1% over the past year. Moreover, ETF’s 4.9% returns on a YTD basis outshine the stock’s gains over the same time frame.

CNC's underperformance is due to declining service revenues, reduced investment and other income, and decreasing membership in Medicaid and Medicare businesses. Regulatory scrutiny, potential government reforms, and rising medical costs could impact margins. Investors are debating the long-term effects of AI on underwriting and claims processing, discussing concerns about ethical implications and potential biases in medical care.

On Apr. 25, CNC shares closed down more than 6% after reporting its Q1 results. Its adjusted EPS of $2.90 exceeded Wall Street expectations of $2.36. The company’s revenue was $46.6 billion, beating Wall Street forecasts of $43.5 billion. CNC expects full-year revenue in the range of $164 billion to $166 billion.

For the current fiscal year, ending in December, analysts expect CNC’s EPS to grow 1.5% to $7.28 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.

Among the 17 analysts covering CNC stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, and eight “Holds.”

This configuration is slightly less bearish than a month ago, with one analyst suggesting a “Moderate Sell.” 

On Apr. 30, Barclays PLC (BCS) analyst Andrew Mok CFA maintained a “Buy” rating on CNC with a price target of $84, implying a potential upside of 33.5% from current levels.

The mean price target of $76.53 represents a 21.6% premium to CNC’s current price levels. The Street-high price target of $90 suggests a notable upside potential of 43%.