'Mad Money' host Jim Cramer dissects Centene's massive plummet following earnings.
Major U.S. equities indexes finished Wednesday mixed as President Donald Trump announced that the U.S. has reached a trade deal with Vietnam.
Centene's stock plunged after slashing 2025 EPS guidance due to higher-than-expected morbidity and lower market growth in key states. The company's previous bullish guidance failed to materialize. Despite the sharp drop, Centene trades at historically low price-to-sales multiples and investment grade status, making valuation attractive for risk-tolerant investors.
Centene Corp (NYSE:CNC) shares fell almost 40% after the healthcare company withdrew its full-year 2025 financial guidance due to weak growth and higher-than-expected costs in its Affordable Care Act (ACA) marketplace business. Based on a preliminary analysis from the independent actuarial firm Wakely, Centene anticipates a $1.8 billion shortfall in risk adjustment revenue for 2025, which translates to a $2.75 per share reduction in adjusted earnings.
CNC pulls its 2025 forecast after a $1.8B risk adjustment shortfall. Also, weak Marketplace growth shakes investor confidence.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
The P/B ratio helps to identify low-priced stocks with high growth prospects. CNC, CVS, ODP, STNE and PSFE are some such stocks.
Centene's stock suffers a historic plunge as underestimation of healthcare costs leads the insurer to withdraw its full-year earnings outlook.
Centene Corporation (NYSE:CNC) experienced a challenging Tuesday evening, witnessing a 25% drop in shares during after-hours trading on July 1st. The significant decline in the healthcare giant's stock wasn't merely another example of market fluctuations; it was directly sparked by the company's complete withdrawal of its 2025 guidance, creating turmoil among investors.
It's been a tough year for health insurance stocks, with UnitedHealth also tumbling after the company pulled its guidance.
News government-subsidized health insurance provider Centene is withdrawing its 2025 financial guidance comes as the Republican-controlled Congress is poised to slash hundreds of billions of dollars in funding to Medicaid and Obamacare markets largely administered by health insurers.
Health insurer Centene, one of the nation's biggest providers of individual coverage under the Affordable Care Act known as Obamacare, on Tuesday withdrew its 2025 guidance, saying market growth in more than 20 states is lower than expected.