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Stockchase Opinions

Jim Cramer - Mad MoneyCenteneCNCBUYFeb 04, 2022

They report Tuesday. It can go higher. It's a takeover target.
$80.57

Stock price when the opinion was issued

$60.96

As of Jun 18, 2026. Market Open.

Healthcare
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Stockchase Research Editor: Michael O'Reilly

CNC provides healthcare to under-insured families and military personnel in the US.  Healthcare is a sector expected to grow for years to come as the population ages.  It trades at 1.6x book and 17x earnings.  Cash reserves are growing as stock is aggressively bought back and debt is retired.  We recommend placing a stop-loss at $63, looking to achieve $88 -- upside potential of 20%.  Yield 0% 

(Analysts’ price target is $88.33)
BUY

About as cheap as it's been in the last 5 years at 1.25x book. FMV is 93% above current price. Earnings and FMV continue to rise. A good buying opportunity.

BUY
Friday it holds its analysts meeting where he expects to hear of strong cash flow and buybacks. T
BUY
His favourite health insurer. CNC mostly manages government health plans, so it will benefit huge from any expansion of medicare. It down modestly from its high, but this boasts an ultra-low 14x earnings. Meanwhile, their acquisitions are working well and they're buying back lots of shares.