No stock can survive a bad market environment. We are in a bizarre broken market environment. Just a handful of few stocks are taking the market higher while the rest of the market is languishing near lows. In such a market environment, here’s one stock that is charting its own bullish path and hence makes the stock a compelling buy.
The Stock is Centene Corporation CNC
I love when stocks make a new all-time high and also do that with a Gap-up. CNC has done both and that qualifies the stock as a buy at the current market price of 79.5
What’s the story:
- 2022 revenue outlook above market expectations.
- Favorable government policies
- Least impacted by Inflation
Centene, a $44 billion market cap company, mostly manages government-run health plans (Medicare or Medicaid), and under the current administration, these programs are only witnessing expansion. It is the third-largest insurer behind UnitedHealth Group and Anthem.
It should be a stable stock in anyone’s portfolio. This is not a momentum stock.
Do you know what Medical Loss ratio is?
Medical loss ratio: It is the percentage of premiums collected that is spent on care.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
Leave a Reply
You must be logged in to post a comment.