LONG $CNC NOW Centene Corporation (CNC)The chart shows a compelling trade setup with an excellent Risk/Reward ratio:
Entry Price: Approximately $36.17 (The price of the latest Heikin Ashi candle).
Stop Loss (Risk): $32.44.
Take Profit (Target): $50.15.
Risk/Reward Ratio (R/R): Approximately 1:3.7 (Profit of $13.98 vs. Risk of $3.73), which is a very attractive ratio for a trade.
A. Technical Signals Supporting the Bullish Scenario:
Trend Reversal: After a sharp decline starting in July, the stock formed a base around the $25-$26 level in August. Since September, a clear uptrend has been established, marked by higher highs and higher lows.
Moving Averages (MA): The stock price has broken above and is holding above the short- and medium-term MAs. The MAs are converging and then starting to fan out upwards, which is a strong confirmation that the upward trend is in place.
B. Fundamental Catalysts & Why $50 is Achievable
The search results reveal a critical fundamental catalyst that took place today (October 29, 2025), significantly strengthening the bullish case:
1. Q3 2025 Earnings Surprise (The Main Catalyst)
Massive Earnings Beat: Centene reported Adjusted Diluted Earnings Per Share (EPS) of $0.50, which substantially beat the consensus estimate of a loss of -$0.21. This represents an enormous positive earnings surprise (+338.10%).
Raised Guidance: The company increased its full-year 2025 Adjusted Diluted EPS forecast to at least $2.00, up $0.25 from its previous forecast.
Market Reaction: The market's immediate response was decidedly positive, with the stock showing a jump of nearly 10% in pre-market trading, signaling a strong re-rating by investors.
