Centene Corporation (CNC): A Bull Case Theory 

We came across a bullish thesis on Centene Corporation on Value investing subreddit by paoee. In this article, we will summarize the bulls’ thesis on CNC. Centene Corporation’s share was trading at $39.34 as of November 28th. CNC’s trailing and forward P/E were 8.94 and 13.11 respectively according to Yahoo Finance.

Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, and commercial organizations in the United States. CNC is viewed as a deep value opportunity, with the investor’s cost basis of $28.15 per share underscoring the stock’s discounted valuation relative to its fundamental strength.

As the largest Medicaid provider in the United States, CNC operates as the dominant low-cost player in a highly specialized segment of the healthcare industry. Its scale advantage positions the company to benefit from the broader profitability upswing expected across health insurers, driven by the short-tail nature of healthcare risk that allows pricing resets and margin recovery.

The investment case is further supported by compelling quantitative metrics: the company’s estimated maximum liquidation value exceeds its current market capitalization by more than 50%, implying that an acquirer could theoretically purchase the entire business and realize substantial gains through asset sales alone. Moreover, CNC’s seven-year average owner earnings of roughly $2.37 billion suggest investors could recoup their investment in about eight years at today’s valuation, or in closer to four years if the company merely maintains its most recent earnings level.

This creates a margin of safety that strengthens the long-term attractiveness of the stock. Going forward, the strategy is straightforward: continue holding CNC unless a superior opportunity emerges or there is a material shift in the company’s or industry’s fundamentals. A key pillar of the thesis is the built-in ability for healthcare insurers to raise prices over time, supporting earnings durability and incremental value creation. Together, these factors frame CNC as a resilient, undervalued compounder with significant upside potential and limited downside risk.

Previously we covered a bullish thesis on Molina Healthcare, Inc. (MOH) by Long-Term Pick in February 2025, which highlighted Marketplace strength and long-term growth from expanding Medicaid and Medicare contracts. The company’s stock price has depreciated approximately by 44.38% since our coverage. This is because the thesis didn’t play out. The thesis still stands as the long-term fundamentals remain intact. paoee shares a similar view but emphasizes CNC’s deep value thesis.

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Disclosure: None.