Shares of Centene Corporation (NYSE: CNC) rose 6.2% from their November 10 low, closing at $36.38. Retail traders on Reddit are bullish due to the low valuation multiple despite revenue growth and raised guidance to at least $2.00 adjusted EPS.

The surge in Reddit activity coincided with a 8.8% drop on November 10. Retail traders bought the dip while Wall Street analysts remained cautious. Sentiment remains bullish, with discussion activity on r/wallstreetbets spiking during the pullback.

Retail traders are convinced of Centene’s undervaluation, citing extreme valuation compression, recent operational momentum, insider conviction, and revenue growth acceleration. Professional analysts, however, are concerned about profitability issues despite attractive valuation multiples and maintain “Hold” ratings.

Centene’s forward outlook depends on sustaining operational improvements that drove its Q3 beat. Management raised full-year adjusted EPS guidance to at least $2.00, showing better cost control. Retail traders should monitor monthly enrollment trends in the Medicare Advantage segment and the sustainability of improved health benefits ratio.

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Read more at Yahoo Finance: Centene Stock Jumps 6.2% as Reddit Traders Buy the Dip Analysts Won’t Touch