It’s not an easy job to find value stocks. Being aware of a company's key financial numbers, like earnings per share and sales growth, can help investors identify stocks that are trading for less than their actual worth. However, a proper analysis of the fundamentals with the help of a number of metrics is required to determine whether a stock is a good bargain or not. When narrowing down the list of undervalued stocks, price to earnings (P/E) and price to sales (P/S) are the first ratios that come to an in ...

At a glance, Centene (NYSE: CNC ) seems almost too good to be true. With a bargain valuation, healthy revenue and earnings growth, and a large membership base spanning across the country, it was difficult at first to understand what pieces of the puzzleI am a full-time data scientist by trade and I have a growing passion for utilizing data-driven analysis to identify stock picking opportunities for long-term generation of wealth. My goal is to build as large a nest egg as possible for my retirement and, eve ...

The 2025 Q1 earnings season is slowly winding down, with the majority of S&P 500 companies already delivering their results. The period has overall been positive, though commentary surrounding upcoming periods has largely dictated post-earnings moves amid elevated uncertainty stemming from tariff talks.Still, several companies – Netflix (NFLX) , Eaton (ETN) , and Centene (CNC) – knocked it out of the park, posting robust results that had shareholders pleased. Let’s take a closer look at each release for tho ...

Centene Corporation (CNC) is aided by a growing Medicaid membership, an aging U.S. population, contract wins, strategic acquisitions and a notable financial standing.CNC’s Zacks Rank & Price PerformanceCentene currently carries a Zacks Rank #2 (Buy).The stock has gained 7.3% in the past three months against the industry’s 22.1% decline. The Zacks Medical sector declined 9.9% and the S&P 500 composite decreased 1.3% in the same time frame.Image Source: Zacks Investment ResearchCentene’s Favorable Style Score ...

In value analysis, though price to earnings (P/E) and price to sales (P/S) are most preferred by investors, the underrated price-to-book ratio (P/B ratio) is also an easy-to-use valuation tool for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book value.The P/B ratio is calculated as below:P/B ratio = market price per share/book value of equity per shareP/B ratio reflects how many times book value investors are ready to pay for a sha ...

Wall Street saw a strong rally on Monday, driven by renewed optimism over U.S.-China trade relations. A 90-day agreement between the two nations to reduce tariffs has rekindled hopes of easing global trade tensions. The United States will lower duties on Chinese imports from a steep 145% to 30%, while China has agreed to cut its retaliatory tariffs on American goods from 125% to 10%, signaling a shift from confrontation to cooperation.Markets responded positively, with the S&P 500 jumping 3.3% to settle at ...

Industry Overview - The healthcare industry has faced challenges in early 2025, including concerns over potential cuts to Medicare and Medicaid, as well as the impact of tariffs on supplies [1] - Despite these challenges, healthcare stocks have performed relatively well, with the Health Care Select Sector SPDR Fund (XLV) down less than 2% year-to-date, compared to the S&P 500's decline of nearly 3% [1] Company Analysis: Centene - Centene Corp. (CNC) has shown solid membership and revenue growth, primarily driven by its Medicaid services, which have helped it withstand market volatility [3][4] - For Q1 2025, Centene reported a 29% year-over-year increase in Marketplace membership and a 22% increase in Medicare membership, contributing to a 28% improvement in adjusted diluted earnings per share (EPS) and a 17% growth in premium and service revenue [4] - The company has reiterated its full-year guidance, indicating optimism for future performance [4] Company Analysis: Tenet Healthcare - Tenet Healthcare Corp. (THC) has received positive analyst ratings, with 13 Buy ratings and four Holds, following a strong Q1 2025 earnings report that exceeded EPS estimates by $1.25 per share, reflecting a year-over-year improvement of over 35% [6][7] - The company plans to invest $250 million annually in its Ambulatory segment and has opened six new centers in Q1 2025, which are expected to drive continued growth [8] - Tenet's share repurchase program and efforts to improve its balance sheet are anticipated to enhance shareholder value [8] Company Analysis: Encompass Health - Encompass Health Corp. (EHC) reported better-than-expected earnings, leading to increased price targets from analysts [10] - The company's shares have risen over 25% year-to-date, with expectations of 10% projected earnings growth in the near term [11]

Centene (CNC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a ch ...

Core Insights - Oklahoma Complete Health is enhancing its SoonerSelect benefits to improve health outcomes and overall well-being for its members [1][2] Benefit Enhancements - Introduction of a $30 per month Diaper Club for members aged 0-1 whose parents are enrolled in the Start Smart for Your Baby program or care management, starting July 1 [2] - Expansion of prescription limits where certain essential medicines will not count towards the 6-prescription monthly limit, aiding members who require more medications [3] - Over-the-Counter benefits will now provide a $30 allowance per member per quarter, allowing members to purchase items like cold medicines and vitamins [4] - Transportation benefits have been upgraded to allow up to 4 family members to accompany members to doctor's appointments, along with providing up to 15 rides for other essential trips [5] Member Engagement and Impact - In its first year, Oklahoma Complete Health completed over 11,651 referrals for social drivers of health needs, assisted more than 2,500 members with Food Rx benefits, facilitated over 20,684 YMCA visits, and distributed more than $2.1 million in reward dollars for healthy activities [6] - Member testimonials highlight the positive impact of the services provided, emphasizing support in accessing resources and maintaining communication [7] Organizational Overview - Oklahoma Complete Health is a care management organization focused on serving Oklahomans with various health insurance solutions and is a subsidiary of Centene Corporation [8][9]

Valuation Metrics - The price-to-earnings (P/E) ratio is a common valuation metric, but for companies with losses or minimal profits, the price-to-sales (P/S) ratio is more effective in identifying undervalued stocks [1] - The price-to-book (P/B) ratio is another useful tool for identifying low-priced stocks with high growth potential, calculated by dividing the stock's current price by its book value per share [2][6] Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [4][5] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][7] Stock Examples - Centene Corporation (CNC) is a diversified healthcare company with a projected 3-5 year EPS growth rate of 11.5%, currently holding a Zacks Rank of 2 and a Value Score of A [16][17] - Pediatrix Medical Group (MD) provides specialized physician services with a projected EPS growth rate of 9.5% and also holds a Zacks Rank of 2 and a Value Score of A [18][19] - Pfizer (PFE), a major pharmaceutical company, has a projected EPS growth rate of 13.8% and maintains a Zacks Rank of 2 and a Value Score of A [19] - StoneCo (STNE) offers financial technology solutions with a projected EPS growth rate of 26.3%, holding a Zacks Rank of 1 and a Value Score of B [20] - Banco Santander (SAN), the largest bank in Spain, has a projected EPS growth rate of 9.6% and a Zacks Rank of 2 with a Value Score of A [21][22] Screening Parameters - Stocks with a P/B ratio less than the industry median indicate potential for price appreciation [12] - A P/S ratio lower than the industry average makes a stock more attractive [12] - A P/E ratio (F1) below the industry median is considered favorable [13] - A PEG ratio of less than 1 suggests that a stock is undervalued relative to its growth prospects [14] - Stocks should have a minimum trading price of $5 and an average 20-day volume of at least 100,000 for better liquidity [15]