Is Centene Stock Underperforming the S&P 500?

Core Viewpoint - Centene Corporation is a large-cap healthcare enterprise with a market cap of $19.1 billion, focusing on under-insured and uninsured individuals, as well as commercial organizations [1][2]. Financial Performance - Centene's shares have dropped 41.9% from its 52-week high of $66.81, but have increased 29.1% over the past three months, outperforming the S&P 500 Index's gain of 6.2% during the same period [3]. - Year-to-date, Centene's stock is down 35.9%, underperforming the S&P 500's rise of 16.5%, and has dipped 34.7% over the past 52 weeks compared to the S&P 500's return of 13.2% [4]. - The stock has been trading below its 50-day and 200-day moving averages since last year, but has recently moved above its 50-day moving average since early September [4]. Recent Developments - On October 29, Centene's shares jumped 12.5% after the company raised its 2025 adjusted profit forecast to at least $2 per share, which is well above previous estimates [5]. - The company reported a strong Medicaid performance with a 93.4% Medicaid Health Benefits Ratio (HBR) and a total HBR of 92.7%, alongside signs of stabilizing high-cost drug trends [5]. - Centene also exceeded expectations with a Q3 2025 adjusted EPS of $0.50 [5]. Competitive Landscape - In comparison, rival Elevance Health, Inc. has shown a less pronounced decline, with its stock decreasing 10.3% year-to-date and nearly 19% over the past 52 weeks [6]. - Analysts remain cautious on Centene due to its weak performance, with a consensus rating of "Hold" from 20 analysts and a mean price target of $40.53, representing a 4.4% premium to current levels [6].