Centene Breaks Down After Earnings, Eyes $33 Support Zone
$Centene(CNC)$
$34.25 (−8.81%): Sharp Breakdown After Earnings — Bearish Momentum Resumes Below EMAs, Support at $33
Market Recap:
Centene Corporation (CNC) plunged 8.81% to close at $34.25, marking its steepest single-day decline in months as investors reacted negatively to post-earnings sentiment and sector pressure across managed-care names.
The stock is now down 43.5% year-to-date, trading deep below its 52-week high of $66.81, with sentiment weighed by weak Medicaid enrollment trends and higher medical cost ratios.
Technicals (1-week outlook):
Price action broke decisively below both EMAs — EMA-20 $35.59 and EMA-50 $34.99 — confirming a renewed bearish bias after weeks of sideways consolidation.
MACD (12,26,9) sits slightly negative at −0.027 vs signal 0.373, with a downward-turning histogram suggesting momentum loss and renewed selling pressure.
RSI (14) slipped to 45.9, pointing toward a return to near-oversold territory without yet showing reversal divergence.
The next support sits at $32.0- $34, resistance lies near $38.0-$39.30
Fundamentals & Valuation:
CNC trades at a depressed P/E −10.7× (TTM) due to negative EPS over the trailing twelve months, with a market cap of ~$16.8B and beta 0.49, indicating low volatility relative to the broader market.
The 1-year analyst target average sits near $39.8, implying limited recovery potential (~+16%) unless operating margins rebound.
Outlook:
Technicals lean bearish short-term, with risk of continued drift toward the $31–33 zone unless strong buying volume emerges. A sustained break above $36.0 would be the first signal of stabilization.
Risk & Disclaimer:
Health-insurance stocks face regulatory and cost-inflation uncertainty. This analysis is based on TradingView and Yahoo Finance data (Nov 7 close) and provided for technical reference only — not investment advice.
For SG users only, a tool to boost your purchasing power and trading ideas with a Cash Boost Account!
Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD 5000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
