CNC (Centene Corporation) fundamental and technical analysis
Hello! This is my idea on Centene Corporation. It accounts for both the technical and fundamental aspect of the stock. This trade is for those with a long term mindset, as it will most likely take a year or more to play out.
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Technical analysis section:
There is a large ascending triangle taking form in the daily and weekly timeframes, which points to a potential 41% upside. There is also a potential 48% upside if you count the ascending triangle as the “flag” and the rally that lead up to it as the “pole”. However, it’s low quality at best, and it would make the most sense to take profits at the ascending triangle target.
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Fundamental analysis section:
Centene Corporation is a healthcare company that offers programs specifically for underinsured individuals. Right now the stock has a relatively low PE ratio of 17.56, current ratio of 1.30 (which means the company has 1.3 times more assets than liabilities), and a debt to equity ratio of 0.65 (which means the company has 0.65 times less debt than equity). It has also had a rising eps (earnings per share) and rising sales during the past five years. This makes it a well managed company, as well as one that has proven it could grow over relatively long periods of time. I would classify it as a “growth” stock trading at a price that makes it worth buying.
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Final thoughts:
I personally like this stock, and will give updates on it when needed. The stop-loss is obviously your choice, but I put it at 10% because I enter only 10% of my capital in each trade (at most). 10% of 10% is 1%, which is the amount of my capital I end up risking. Good luck and great trading everyone, I’ll be posting another idea soon! (Also, I didn’t post anything for a while because I realized I didn’t know enough about fundamental and technical analysis to justify giving out ideas. Now, I think I do. Will be posting growth and value stocks that follow strict fundamental and technical criteria with either moderate or high chances of succeeding.)
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Technical analysis section:
There is a large ascending triangle taking form in the daily and weekly timeframes, which points to a potential 41% upside. There is also a potential 48% upside if you count the ascending triangle as the “flag” and the rally that lead up to it as the “pole”. However, it’s low quality at best, and it would make the most sense to take profits at the ascending triangle target.
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Fundamental analysis section:
Centene Corporation is a healthcare company that offers programs specifically for underinsured individuals. Right now the stock has a relatively low PE ratio of 17.56, current ratio of 1.30 (which means the company has 1.3 times more assets than liabilities), and a debt to equity ratio of 0.65 (which means the company has 0.65 times less debt than equity). It has also had a rising eps (earnings per share) and rising sales during the past five years. This makes it a well managed company, as well as one that has proven it could grow over relatively long periods of time. I would classify it as a “growth” stock trading at a price that makes it worth buying.
——————————————————————————————————————————————————————————————
Final thoughts:
I personally like this stock, and will give updates on it when needed. The stop-loss is obviously your choice, but I put it at 10% because I enter only 10% of my capital in each trade (at most). 10% of 10% is 1%, which is the amount of my capital I end up risking. Good luck and great trading everyone, I’ll be posting another idea soon! (Also, I didn’t post anything for a while because I realized I didn’t know enough about fundamental and technical analysis to justify giving out ideas. Now, I think I do. Will be posting growth and value stocks that follow strict fundamental and technical criteria with either moderate or high chances of succeeding.)
