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Centene (CNC) shares rose 6.2% from their November 10 low as retail traders on Reddit bought the dip while Wall Street analysts stayed cautious.
Centene trades at 0.106 times sales despite 22% revenue growth and raised full-year guidance to at least $2.00 adjusted EPS.
Medicare segment revenue surged 66% year-over-year but the health benefits ratio climbed to 92.7% from 89.2%.
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Shares of Centene Corporation (NYSE: CNC) have climbed 6.2% from their November 10 low of $34.25. Today, shares closed at $36.38.
The move coincides with sustained bullish sentiment from retail traders on Reddit, particularly on r/wallstreetbets, where discussion activity spiked dramatically during the recent pullback in shares. Sentiment scores have held steady in the 65-72 range throughout the past month. With 50/100 being neutral, this puts Centene sentiment firmly in bullish territory.
Why the retail enthusiasm? It’s all rooted in a classic contrarian play. Wall Street analysts remain cautious, with 14 of 20 maintaining “Hold” ratings. But retail traders see opportunity
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in the valuation disconnect. The company trades at just 0.106 times sales and 0.849 times book value, metrics that suggest deep value territory despite current profitability challenges.
November 10 marked a critical inflection point, when the stock dropped 8.8% on heavy volume of 17.7 million shares. That same day, Reddit activity reached its highest levels of the month, with posts on r/wallstreetbets garnering 563 upvotes and 115 comments in a single snapshot. The pattern is clear: retail traders bought the dip while institutions remained on the sidelines.
Reddit discussions reveal a community convinced that Wall Street is missing the story. One particularly active thread on r/wallstreetbets captured the sentiment:
“CNC -…
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