Centene Tells United Healthcare To Hold Its Beer

Summary

  • 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.

Hospital Emergency Trauma Center entrance sign

Johnrob/iStock via Getty Images

It has been a minute since we wrote about Centene Corporation (NYSE:CNC). Since our 2021 article, the stock has done nothing for the "buy and hold" investors.

Of course, that underperformance went to a whole new

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of CNC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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