Centene Stock (NYSE:CNC), Trade Ideas

Centene

Centene is a managed-care organization focused on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. Centene served 24 million medical members as of June 2023, mostly in Medicaid (67% of membership), the individual exchanges (14%), and Medicare Advantage (6%) plans. The company also serves traditional Medicare users with its Medicare Part D pharmaceutical program.

Medical,Examination,And,Healthcare,Business,Graph,,,Health,Insurance,,Health

Earnings

News

Guidance

Health Care

Movers

Trading Ideas

General

Centene outperforms expectations with $40.41 billion in Q1 sales, driven by robust growth in premium revenues and steady membership. Raises full-year guidance amid strong momentum.

Centene&#39;s First-Quarter Surge: Sales Soar To $40.41B, Exceeding Expectations: What&#39;s Next For The Healthcare Company?

Markets

Humana (NYSE: HUM) came out with quarterly earnings of $7.23 per share, beating the Zacks Consensus Estimate of $6.02 per share. This compares to earnings of $9.38 per share a year ago. These figures are adjusted for non-recurring items.

Humana Tops Q1 Earnings and Revenue Estimates

Man.Markets.Shutterstock

Equities

Large Cap

Macro Economic Events

Sector ETFs

Broad U.S. Equity ETFs

Commodities

Treasuries

Econ #s

Economics

Intraday Update

ETFs

$BTC

SPDR Dow Jones Industrial Average ETF Trust

IBKR

JBHT

NTRS

SKIL

iShares Trust Barclays 20+ Year Treasury Bond Fund

TSLA

Investors remain on edge as geopolitics continue to shape market trends, with Israel mulling a response to Iran while the U.S. and key allies explore further sanctions against Tehran.

Stocks Grapple With Geopolitical Pressures, Gold Eyes $2,400, Bitcoin Falls Below $62,000: What&#39;s Driving Markets Tuesday?

Centene Corp

Canna Corp

CANCER CAPITAL CORP by Cancer Capital Corp.

Cancer Capital Corp

CONNECTED MEDIA TECHS INC by Connected Media Technologies, Inc.

Connected Media Technologies Inc

CHUN CAN CAPITAL GROUP by Chun Can Capital Group

Chun Can Capital Group

Core Nickel Corp

CONDUIT CAPITAL LTD ORD by Conduit Capital Ltd.

Conduit Capital Ltd

Range Cancer Therapeutics ETF

CHINA CASTSON 81 FINCE by CHINA CASTSON 81 FINANCE CO.

China Castson 81 Finance Co Ltd

CHINA TELETECH HLDGS INC by China Teletech Holding, Inc.

China Teletech Holding Inc

Centene Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) reported&nbsp;first-quarter&nbsp;sales of&nbsp;$40.41 billion, up&nbsp;11%&nbsp;Y/Y, beating the consensus of&nbsp;$36.14 billion.
Premium and service revenues increased 4% to&nbsp;$36.3 billion, driven by membership growth in the Marketplace business due to strong product positioning and overall market growth, partially offset by recent divestitures in the Other segment and lower Medicaid membership primarily&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38454080/centene-corporation-reports-first-quarter-2024-results" rel="noreferrer noopener">due to redeterminations</a>.
The health benefits ratio of 87.1% for the first quarter of 2024 represented an increase from 87.0% in the comparable period in 2023.
Related:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38255526/see-how-floridas-much-awaited-medicaid-re-procurement-awards-impact-centene-humana-" rel="noreferrer noopener">See How Florida&#8217;s Much Awaited Medicaid Re-Procurement Awards Impact Centene, Humana, Molina</a>.
The company reported a&nbsp;first-quarter&nbsp;adjusted EPS of $2.26, up from $2.11 a year ago, beating the consensus of $2.08.
&#8220;Centene&#8217;s first quarter results demonstrate the strength of our diversified platform,&#8221; Centene CEO Sarah London said in a statement accompanying the company&#8217;s earnings report. &#8220;We are pleased to raise full-year 2024 guidance as we look to maximize the positive momentum being generated by our core businesses.&#8221;
Centene said total managed care membership held steady at 28.42 million at the end of the first quarter of this year, compared to 28.45 million a year ago.
Centene&#8217;s enrollment in its &#8220;commercial marketplace&#8221; business grew to 4.3 million members from 3 million a year ago.&nbsp;
Premium revenues from Commercial business increased 48% Y/Y to&nbsp;$7.8 billion.
Total Medicaid memberships fell over 18% to 13.3 million from 16.3 million.
Guidance:&nbsp;Centene revised its 2024 adjusted EPS&nbsp;guidance&nbsp;floor of greater than&nbsp;$6.80&nbsp;versus prior&nbsp;guidance&nbsp;of greater than&nbsp;$6.70&nbsp;versus consensus of&nbsp;$6.78.
Centene expected 2024 revenue guidance of $147.5 billion-$150.5 billion versus the consensus Of&nbsp;$146.14 billion, including premium and service revenues of&nbsp;$135.5 billion-$138.5 billion&nbsp;versus prior guidance of $134.5 billion-$137.5 billion.
CNC Price Action:&nbsp;Centine shares are down 4.11%&nbsp;at&nbsp;$72.57&nbsp;at publication Friday.
Read Next: <a href="https://www.benzinga.com/general/macro-notification/24/04/38458581/feds-key-inflation-indicator-hits-2-8-dashes-rate-cut-hopes-traders-on-alert">Fed&#8217;s Key Inflation Indicator Hits 2.8%, Dashes Rate Cut Hopes; Traders On Alert</a>
Photo: Shutterstock

Centene's First-Quarter Surge: Sales Soar To $40.41B, Exceeding Expectations: What's Next For The Healthcare Company?

Centene shares are trading higher after the company reported better-than-expected Q1 2024 adjusted EPS and sales. Additionally, the company raised upbeat its guidance for 2024.

Centene Expects 2024 Revenue Guidance Of $147.5B-$150.5B Versus Consensus Of $146.14B, Including Premium And Service Revenues Of $135.5B-$138.5B Versus Prior Guidance Of $134.5B-$137.5B

Centene Revises Its 2024 Adjusted EPS Guidance Floor Of Greater Than $6.80 Versus Prior Guidance Of Greater Than $6.70 Versus Consensus Of $6.78

Centene Reports Q1 Health Benefits Ratio Of 87.1%, With Membership Of 28,422,800

Centene (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) reported quarterly earnings of $2.26 per share which beat the analyst consensus estimate of $2.08 by 8.65 percent. This is a 7.11 percent increase over earnings of $2.11 per share from the same period last year. The company reported quarterly sales of $40.407 billion which beat the analyst consensus estimate of $36.536 billion by 10.59 percent. This is a 3.90 percent increase over sales of $38.889 billion the same period last year.

Earnings Beats

Centene Q1 2024 Adj EPS $2.26 Beats $2.08 Estimate, Sales $40.407B Beat $36.536B Estimate

Humana (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hum#NYSE">HUM</a>) came out with quarterly earnings of $7.23 per share, beating the Zacks Consensus Estimate of $6.02 per share. This compares to earnings of $9.38 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 20.10%. A quarter ago, it was expected that this health insurer would post a loss of $0.07 per share when it actually produced a loss of $0.11, delivering a surprise of -57.14%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Humana, which belongs to the Zacks Medical - HMOs industry, posted revenues of $29.33 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 2.55%. This compares to year-ago revenues of $26.74 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock&#39;s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management&#39;s commentary on the earnings call.
Humana shares have lost about 28.4% since the beginning of the year versus the S&amp;P 500&#39;s gain of 6.3%.
What&#39;s Next for Humana?
While Humana has underperformed the market so far this year, the question that comes to investors&#39; minds is: what&#39;s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company&#39;s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Humana: mixed. While the magnitude and direction of estimate revisions could change following the company&#39;s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $5.74 on $28.06 billion in revenues for the coming quarter and $16.06 on $112.26 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - HMOs is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Centene (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cnc#NYSE">CNC</a>), is yet to report results for the quarter ended March 2024. The results are expected to be released on April 26.
This healthcare company is expected to post quarterly earnings of $2.09 per share in its upcoming report, which represents a year-over-year change of -1%. The consensus EPS estimate for the quarter has been revised 5.4% higher over the last 30 days to the current level.
Centene&#39;s revenues are expected to be $36.41 billion, down 6.4% from the year-ago quarter.
<a href="https://www.zacks.com/stock/news/2260830/humana-hum-tops-q1-earnings-and-revenue-estimates?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_4-2260830">To read this article on Zacks.com click here.</a>

Centene's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) short percent of float has fallen 15.61% since its last report. The company recently reported that it has 8.20 million shares sold short, which is 1.73% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.58 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Centene Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713815123_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Centene has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Centene's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Centene's peer group average for short interest as a percentage of float is 4.06%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Centene's Recent Short Interest

Investors remain on edge as geopolitics continue to shape market trends, with Israel mulling a response to Iran while the U.S. and key allies explore <a href="https://www.benzinga.com/news/24/04/38264304/middle-east-tensions-mount-as-israel-considers-retaliation-after-irans-direct-attack">further sanctions against Tehran.</a>
U.S. major averages display mixed performances as of midday trading Tuesday. The S&amp;P 500 holds steady at 5,200 points, while blue-chip stocks outperform the broader market, and small caps experience some declines.
In its April World Economic Outlook, the International Monetary Fund raised growth projections for the U.S. economy, while eyeing the possibility of Federal Reserve rate cuts this year as inflation declines. Yet, an escalation in the Middle East could complicate the picture, pushing oil and inflation higher and forcing central <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38272906/imf-expects-lower-interest-rates-unless-middle-east-conflict-escalates-there-will-b">banks to tighten again. </a>
Treasury yields continue to kick higher, with the yield on the 10-year Treasury bond reaching 4.65%. Bond-related ETFs declined further, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) down 0.5%. 
Despite the uptick in yields and a stronger dollar, gold continues to showcase an impressive strength, with the yellow metal up 0.3% to $2,390 per ounce, on track for a record-high close. 
Oil prices were slightly softer, down 0.4%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is down 2.5% to $61,900, marking a 15% drop since last week&#8217;s high. 
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,910.28</td>
<td>0.5%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,759.96</td>
<td>0.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,066.92</td>
<td>0.1%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>195.34</td>
<td>-0.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:30 p.m. EDT</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) held steady at $504.71, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.4% to $379.06 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) held steady at $431.91, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) outperformed, up 0.4%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) was the major laggard, down 0.9%. 
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Tesla, Inc, (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fell more than 2.8%, on track to close at the lowest level in a year, after analysts interpreted the recent layoff announcement as a negative sign for the company&#8217;s outlook. </li>
<li>Companies reacting to earnings were Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), down 3.3%; Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>), up 3.4%; Northern Trust Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NTRS#NYSE">NTRS</a>), down 4%; PNC Financial Services Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>), down 1.9%; Jonson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>), down 2.4%; and UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>), up over 6%. </li>
<li>Skillsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SKIL#NASDAQ">SKIL</a>) fell nearly 40%, after a revenue miss and departure of its CEO. </li>
<li>Hawaiian Electric Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HE#NYSE">HE</a>) fell 18%, falling below last year&#8217;s lows, after the company announced readiness to implement rolling blackouts owing to reduced wind and solar power generation, along with the temporary outage of several large generators.</li>
<li>Notable names reporting earnings after the close are J.B. Hunt Transport Services, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>), United Airlines Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) and Interactive Brokers Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NYSE">IBKR</a>). </li>
</ul>
Read Now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38274726/homebuilder-stocks-tumble-as-housing-starts-fall-by-14-7-a-poor-time-to-buy-a-home-">Homebuilder Stocks Tumble As Housing Starts Fall By 14.7%: &#8216;A Poor Time To Buy A Home,&#8217; Says Economist</a>
Photo: Shutterstock

Stocks Grapple With Geopolitical Pressures, Gold Eyes $2,400, Bitcoin Falls Below $62,000: What's Driving Markets Tuesday?

Earnings optimism may partly offset worries concerning&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38259895/bond-yields-surge-to-6-month-highs-as-likelihood-of-no-landing-scenario-increases-u" rel="noreferrer noopener">rising bond yields</a>&nbsp;and the volatile geopolitical situation in the Middle East, with the index futures trading mixed early Tuesday. Israel is considering its next course of action, adding to the uncertainty. Domestically, inflation concerns have pushed bond yields sharply higher.
UnitedHealth Group&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) rose solidly after its earnings report, with other health benefit companies following suit. On the other hand, several tech heavyweights are sliding in premarket trading, hinting at extended weakness. Traders may pay attention to speeches by Federal Reserve officials, including one from Chairman&nbsp;Jerome Powell.&nbsp;Global cues are negative, with most major averages plunging hard amid the macro and geopolitical concerns.
 Futures Performance On Tuesday ( as of 6:50 a.m. EDT)
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.09%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.04%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.38%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.72%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a>&nbsp;trading on Tuesday, the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was little changed at $504.43,&nbsp;and the&nbsp;Invesco QQQ ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged down 0.10% to $430.63, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Previous Session:
The spike in bond yields, aided by a stronger-than-expected March retail sales report, and simmering tensions in the Middle East offset the optimism generated by earnings, and sent the major indices spiraling lower on Monday. The Dow declined for a six straight session despite the support lent by Goldman Sachs Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) following the investment bank&#8217;s earnings release.
The plunge took the S&amp;P 500 and the Nasdaq Composite to a nearly two-month low, while the Dow Industrials pulled back toward its lowest close since Jan. 18. The small-cap Russell 2,000 Index fell below the psychological level of 2,000 and ended at its lowest level in more than two months.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance In (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-1.79%</td>
<td>15,885.02</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>-1.20%</td>
<td>5,061.82</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.65%</td>
<td>37,735.11</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-1.37%</td>
<td>1,975.71</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Going by historical patterns, one can expect a reversal in sentiment, according to Carson Group&#8217;s Ryan Detrick. Commenting on Monday&#8217;s move, the analyst said, &#8220;First close beneath the 50-day MA for the S&amp;P 500 in 110 trading days, longest since 2011.&#8221;
He, however, pointed to a silver lining in the cloud. When streaks over 100 days ended, stocks were higher three months later 88% of the time and six months later 81% of the time, he said.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">First close beneath the 50-day MA for the S&amp;P 500 in 110 trading days, longest since 2011. Looking at when streaks over 100 days ended showed stocks were higher 3 mos later 88% of time and 6 mos later 81% of time. A warning? Maybe, but maybe not. <a href="https://t.co/kFuB2G5gbo">pic.twitter.com/kFuB2G5gbo</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1780073745194815972?ref_src=twsrc%5Etfw">April 16, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<figcaption class="wp-element-caption">Louis Navellier, who has largely been bullish on the market, on Monday said sustained recovery may require some stability in interest rates and more clarity in the geopolitical situation.</figcaption></figure>
Upcoming Economic Data:
The Commerce Department is due to release its housing starts report at 8:30 a.m. EDT. Economists, on average, expect housing starts to come in at 1.48 million units in March, down slightly from 1.52 million units in February. Building permits, an indicator of future housing activity, may have edged down from 1.52 million units to 1.51 million units.
The Fed will release its industrial production report for March at 8:15 a.m. EDT. The consensus estimate calls for a 0.4% month-over-month increase in industrial output, faster than the 0.1% growth in February.
Fed Vice Chair Philip Jefferson is scheduled to speak at 9 a.m. EDT, New York Fed President John Williams at 12:30 p.m., and Richmond Fed President Thomas Barkin at 1 p.m. EDT. Fed Chair Powell will make a public appearance at 1:15 p.m. EDT.
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Stocks In Focus:
<ul>
<li>Tesla, Inc, (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fell over 2.30% <a href="https://www.benzinga.com/premarket">in premarket trading</a> to $157.66 in premarket amid weak China sales data and the ongoing concerns about the company&#8217;s near term.</li>
<li>Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>), Northern Trust Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NTRS#NYSE">NTRS</a>), PNC Financial Services Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) and Jonson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) are among those <a href="https://www.benzinga.com/calendars/earnings">reporting earnings ahead of the market open.</a> UnitedHealth climbed over 5% in reaction to its quarterly results, taking along with the shares of peers such as Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>) and Centene Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>).</li>
<li>Notable names reporting after the close are J.B. Hunt Transport Services, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>) and United Airlines Holdings, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>).</li>
</ul>
Commodities, Bonds, and Global Equity Markets:
Crude oil futures traded lower for a second straight session but held above the $85-a-barrel mark on Tuesday and gold futures firmed up but are trading off Friday&#8217;s intraday high of $2,448.80 a troy ounce. Bond yields stayed elevated, with the 10-year note&#8217;s yield holding around the 4.65% mark.
 Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell about 7% and has retraced to near the $62,000 level.
The global equity markets were swathed in a sea of red, with all major Asian averages declining steeply. China&#8217;s first-quarter GDP growth came in above expectations but March retail sales and industrial production growth decelerated, missing the consensus estimates. This painted a weak demand outlook for the economy.
European stocks also fell sharply in early trading, with the Euro STOXX 50 Index down about 1.48%.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38259895/bond-yields-surge-to-6-month-highs-as-likelihood-of-no-landing-scenario-increases-u">Peter Schiff Challenges Bitcoin&#8217;s $100K Prediction As Crypto-Linked Stocks Languish In Bear Zone: &#8216;Sell Your Fool&#8217;s Gold And Buy The Real Thing&#8217;</a>
Photo by Tada Images on Shutterstock

Futures

Previews

Federal Reserve

Pre-Market Outlook

Wall Street Braces For Mixed Open As Middle-East Tensions Offset Earnings Optimism: Analyst Points To Silver Lining In Rally Break

Friday, the Agency for Health Care Administration&nbsp;<a target="_blank" href="https://vendor.myfloridamarketplace.com/search/bids/detail/8624" rel="noreferrer noopener">announced</a>&nbsp;contracts to five health plans due for the re-procurement of the Statewide Medicaid Managed Care (SMMC) program.&nbsp;
Florida has finally announced its long-awaited Medicaid contract awards, keeping&nbsp;Centene Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>),&nbsp;Elevance Health Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), and&nbsp;Humana Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>) as the only providers in each state region.&nbsp;
Stephens&nbsp;noted that Centene and Elevance Health re-procured specialty contracts (MMASC) while Centene also retained its child welfare (MMACC) contract.
This decision sidelines&nbsp;UnitedHealth Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>),&nbsp;CVS&nbsp;Health Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>), and&nbsp;Molina Healthcare Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) from the state&#8217;s Medicaid market. Centene stands to benefit the most, maintaining its dominant position.&nbsp;
The contract spans six years and is slated to commence in October.
Florida law mandates that SMMC health plans be re-procured every six years; this was the second re-procurement.&nbsp;
Through a regular, established competitive procurement process, the Agency negotiated and selected health plans to provide Managed Medical Assistance (MMA) and Long-term Care (LTC) services to the more than 3.4 million Florida people enrolled in the SMMC program.
Stephens adds that the results suggest the best possible outcome in Centene&#8217;s expected scenario of member loss.&nbsp;
They recommend increasing the company&#8217;s overall share of Florida Medicaid. Additionally, the analyst anticipates Elevance Health and Humana will increase their membership by approximately 28% and 26%, respectively.
Oppenheimer&nbsp;writes that this outcome is ideal for Centene as it maintains its market share, exceeding expectations of substantial losses despite its high market presence.
Oppenheimer notes that Humana was a large beneficiary with around 147k members.
CVS Health, UnitedHealth, and Molina missed out, possibly prompting protests that could delay the implementation start date until January 1, 2025.&nbsp;
Overall, the market will likely view the re-procurement as a major success for CNC, which should boost its stock, particularly considering recent letdowns in smaller re-procurements.
Price Action: CNC shares are up 3.23% at $73.02, and MOH shares are down 4.65% at $359.07 on the last check Monday.
Photo via Shutterstock

Analyst Color

Government

Analyst Ratings

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

See How Florida's Much Awaited Medicaid Re-Procurement Awards Impact Centene, Humana, Molina

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Centene (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) in the last three months.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Centene, revealing an average target of $91.0, a high estimate of $101.00, and a low estimate of $85.00. Observing a downward trend, the current average is 0.44% lower than the prior average price target of $91.40. 
<img src="https://www.benzinga.com/files/images/story/2024/1713204082_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Centene. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$93.00</td>
<td>$89.00</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$89.00</td>
<td>$94.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$90.00</td>
<td>-</td>
</tr>
<tr>
<td>Scott Fidel</td>
<td>Stephens &amp; Co.</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$85.00</td>
<td>$92.00</td>
</tr>
<tr>
<td>Scott Fidel</td>
<td>Stephens &amp; Co.</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$85.00</td>
<td>$92.00</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$94.00</td>
<td>$90.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Announces</td>
<td>Overweight</td>
<td>$101.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Centene. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Centene compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Centene's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Centene's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/CNC/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Centene analyst ratings.</a>
<h2>All You Need to Know About Centene</h2>
Centene is a managed-care organization focused on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. Centene served 24 million medical members as of June 2023, mostly in Medicaid (67% of membership), the individual exchanges (14%), and Medicare Advantage (6%) plans. The company also serves traditional Medicare users with its Medicare Part D pharmaceutical program.
<h3>Unraveling the Financial Story of Centene</h3>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Over the 3 months period, Centene showcased positive performance, achieving a revenue growth rate of 10.96% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.
Net Margin: Centene's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.11%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Centene's ROE excels beyond industry benchmarks, reaching 0.18%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Centene's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.05%, the company showcases efficient use of assets and strong financial health.
Debt Management: Centene's debt-to-equity ratio stands notably higher than the industry average, reaching 0.73. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>Analyst Ratings: Simplified</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Evaluating Centene: Insights From 7 Financial Analysts

WIIM

Centene shares are trading higher after Florida announced Statewide Medicaid Managed Care Program awards, under which the company secured a statewide contract.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.
<ul>
<li>Wells Fargo boosted the price target for Centene Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cnc#NYSE">CNC</a>) from $89 to $93. Wells Fargo analyst Stephen Baxter maintained an Overweight rating. Centene shares fell 1.3% to close at $70.73 on Friday. <a href="https://www.benzinga.com/quote/CNC/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Oppenheimer slashed the price target for Veru Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/veru#NASDAQ">VERU</a>) from $7 to $5. Oppenheimer analyst Leland Gershell reiterated an Outperform rating. Veru shares dipped 15.1% to close at $1.52 on Friday. <a href="https://www.benzinga.com/quote/VERU/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Oppenheimer cut JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) price target from $219 to $217. Oppenheimer analyst Chris Kotowski maintained an Outperform rating. JPMorgan shares fell 6.5% to close at $182.79 on Friday. <a href="https://www.benzinga.com/quote/JPM/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Chardan Capital cut the price target for Notable Labs, Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntbl#NASDAQ">NTBL</a>) from $9 to $7. Chardan Capital analyst Keay Nakae maintained a Buy rating. Notable Labs shares fell 4.1% to close at $1.16 on Friday. <a href="https://www.benzinga.com/quote/NTBL/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Rosenblatt lowered Charter Communications, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chtr#NASDAQ">CHTR</a>) price target from $334 to $297. Rosenblatt analyst Barton Crockett maintained a Neutral rating. Charter Communications shares fell 2.3% to close at $260.50 on Friday. <a href="https://www.benzinga.com/quote/CHTR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Wedbush raised PVH Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pvh#NYSE">PVH</a>) price target from $113 to $128. Wedbush analyst Tom Nikic upgraded the stock from Neutral to Outperform. PVH shares fell 2.6% to close at $105.59 on Friday. <a href="https://www.benzinga.com/quote/PVH/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>B of A Securities raised the price target for Cisco Systems, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/csco#NASDAQ">CSCO</a>) from $55 to $60. B of A Securities analyst Tal Liani upgraded the stock from Neutral to Buy. Cisco shares fell 2.1% to close at $48.49 on Friday. <a href="https://www.benzinga.com/quote/CSCO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Stifel raised Masimo Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/masi#NASDAQ">MASI</a>) price target from $148 to $170. Stifel analyst Rick Wise upgraded the stock from Hold to Buy. Masimo shares fell 3.4% to close at $137.92 on Friday. <a href="https://www.benzinga.com/quote/MASI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Keybanc boosted Cadence Design Systems, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>) price target from $335 to $340. Keybanc analyst Jason Celino maintained an Overweight rating. Cadence Design shares fell 1.4% to close at $305.85 on Friday. <a href="https://www.benzinga.com/quote/CDNS/analyst-ratingsD">See how other analysts view this stock.</a></li>
<li>JP Morgan raised Lockheed Martin Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>) price target from $475 to $518. JP Morgan analyst Seth Seifman upgraded the stock from Neutral to Overweight. Lockheed Martin shares fell 0.4% to close at $450.40 on Friday. <a href="https://www.benzinga.com/quote/LMT/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
&nbsp;
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38244618/top-3-tech-stocks-that-may-explode-this-month"> Top 3 Tech Stocks That May Explode This Month </a>

Penny Stocks

Price Target

CDNS

CHTR

CSCO

MASI

NTBL

VERU

Cisco To Rally Around 24%? Here Are 10 Top Analyst Forecasts For Monday

Wells Fargo analyst Stephen Baxter maintains Centene (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) with a Overweight and raises the price target from $89 to $93.

Wells Fargo Maintains Overweight on Centene, Raises Price Target to $93

Centene (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) has outperformed the market over the past 20 years by 7.6% on an annualized basis producing an average annual return of 15.56%. Currently, Centene has a market capitalization of $38.32 billion. 
Buying $100 In CNC: If an investor had bought $100 of CNC stock 20 years ago, it would be worth $1,726.79 today based on a price of $71.64 for CNC at the time of writing.
<h3>Centene's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712867420_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $100 In This Stock 20 Years Ago, You Would Have $1,700 Today

Wells Fargo analyst Stephen Baxter maintains Centene (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) with a Overweight and lowers the price target from $94 to $89.

Wells Fargo Maintains Overweight on Centene, Lowers Price Target to $89

Cantor Fitzgerald analyst Sarah James reiterates Centene (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) with a Overweight and maintains $90 price target.

Reiteration

Cantor Fitzgerald Reiterates Overweight on Centene, Maintains $90 Price Target

Benzinga Opening Bell Update: Tesla Falls On Delivery Numbers, Oil Gains On Middle East Tensions, Healthcare Providers Drop On Medicare Advantage Rates

Shares of healthcare providers are trading lower after the CMS finalized payment updates for the 2025 Medicare Advantage and Medicare Part D programs.

Elevance hits 52-week high after Q1 earnings

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Over the years, the healthcare industry in the United States has morphed into a complex web of insurance companies, hospital corporations and medical providers. Since the 2020 Coronavirus pandemic, U.S. healthcare spending and government subsidization have ballooned to nearly <a href="https://www.healthsystemtracker.org/chart-collection/u-s-spending-healthcare-changed-time/#Local%20and%20federal%20expenditures%20on%20public%20health,%20US%20%24Billions,%201970-2022">double pre-pandemic levels</a>. Despite this involvement of taxpayer dollars, approximately 100 million Americans are burdened by some level of medical debt. This has resulted in a difficult medical system for consumers, but an advantageous one for health providers, leading to some of the best <a href="https://investorplace.com/industries/healthcare/">healthcare stocks</a> to buy now.



Today, healthcare conglomerates represent some of the most profitable businesses in the United States. For example, in 2022 alone, the four largest U.S. insurance companies made an eye-watering <a href="https://penncapital-star.com/uncategorized/americans-suffer-when-health-insurers-place-profits-over-people/#:~:text=In%202022%2C%20UnitedHealth%20Group%20made,a%20staggering%20sum%20of%20money.">$41 billion in combined profits</a>. This trend has led to companies with objectively strong financials, despite the strain it puts on the average American&rsquo;s taxes and salaries. 



So, for investors looking to profit from America&rsquo;s complex healthcare system, here are three healthcare stocks to buy now.



<h2>Elevance (ELV)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/medical-device-stocks-hospital-stocks-healthcare-stocks-300x169.jpg" alt="An image of two medical professionals performing a procedure on a patient"><div>Source: Roman Zaiets / Shutterstock.com</div></div>A middle-of-the-pack option in size and significance, Elevance (NYSE:<a href="https://investorplace.com/stock-quotes/elv-stock-quote/">ELV</a>) has worked consistently to streamline its business model. Known as Anthem and Blue Cross Blue Shield before <a href="https://www.managedhealthcareexecutive.com/view/anthem-changing-name-to-elevance-health">rebranding for simplicity</a>, Elevance&rsquo;s reputation has kickstarted its regional growth. One aspect of the American health system many investors may not be aware of is how private insurance companies play into Medicaid provisions.



When a state offers Medicaid to residents, it does so through state and federal taxes allocated to private insurance companies. This means insurance companies collect money from the customer both in the form of premiums and taxes. By leveraging this aspect of the healthcare system, Elevance has successfully secured a Medicaid contract to become one of <a href="https://finance.yahoo.com/news/see-floridas-much-awaited-medicaid-201706081.html">Florida&rsquo;s top three providers</a>.



Considering that Florida is the third most populous state in the U.S. with nearly <a href="https://health.wusf.usf.edu/health-news-florida/2024-02-15/floridas-medicaid-enrollment-numbers-dip-below-4-8-million-in-january">5.8 million beneficiaries</a> of Medicaid, Elevance has generous room to grow.



Analysts are also <a href="https://stockanalysis.com/stocks/elv/forecast/">very bullish</a> on ELV&rsquo;s prospects, as its EPS is set to surge 48% this year. This forecast makes ELV one of those healthcare stocks to buy.



<h2>Centene (CNC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/healthcare1600-300x169.jpg" alt="a photo of a stethoscope laying atop medical papers"><div>Source: Shutterstock</div></div>As the largest Medicaid-managed care organization in the U.S., Centene (NYSE:<a href="https://investorplace.com/stock-quotes/cnc-stock-quote/">CNC</a>) has positioned itself for profit regardless of the economy. CNC has become a leading Medicaid provider in California, Florida, New York and Texas, four of the largest Medicaid states. This means the company is insulated from regional economic trends and directly benefits from times of hardship.



That&rsquo;s because <a href="https://crsreports.congress.gov/product/pdf/IF/IF11686">Medicaid usage spikes when people lose their jobs</a> and thus medical benefits or cannot afford private health insurance. On one hand, Centene&rsquo;s long-term care management services improve patient outcomes for those less financially fortunate. Yet, on the other hand, they strain government tax allocations in times of economic struggle.



Moreover, the company just expanded its Medicaid <a href="https://investors.centene.com/2024-04-09-CENTENE-SUBSIDIARY-MERIDIAN-IN-MICHIGAN-AWARDED-MICHIGAN-MEDICAID-CONTRACTS">contract provisions to Michigan</a>, which also constitutes one of the larger state economies in America. Thus, CNC could be one of those healthcare stocks to buy now, before a potential economic downturn.



Healthcare stocks are generally considered more defensive and less cyclical than other types of investments, such as <a href="https://investorplace.com/stock-types/growth-stocks/">growth stocks</a>. This gives them their defensive qualities.



<h2>Cigna (CI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/cigna-ci-1600-300x169.png" alt="Cigna logo displayed on a modern smartphone. CI stock."><div>Source: Piotr Swat / Shutterstock</div></div>Medicare specialization might not be for every healthcare company, as Cigna (NYSE:<a href="https://investorplace.com/stock-quotes/ci-stock-quote/">CI</a>) <a href="https://www.prnewswire.com/news-releases/the-cigna-group-to-sell-medicare-businesses-and-careallies-to-health-care-service-corporation-hcsc-302049322.html">recently divested its Medicare Advantage section</a>. Considering the lucrative nature of government subsidization, this may seem like a mistake for Cigna. However, the company is relentless in the pursuit of profits, and its unprofitable Medicare venture was bound to be sold.



Since its Medicare divestiture, Cigna has refocused efforts on its primary target market to individuals capable of affording premium insurance. With this move, the company raised its annual adjusted earnings per share <a href="https://www.prnewswire.com/news-releases/the-cigna-group-raises-long-term-growth-target-and-launches-new-innovative-solutions-at-2024-investor-day-302082451.html">growth target to 10%-14% for 2024</a>. A big part of this growth prediction comes from the innovative solutions the company intends to introduce this year.



From expedited pharmacy scripting to <a href="https://www.thecignagroup.com/our-capabilities/evernorth-health-services">simplified behavioral care</a> services, Cigna&rsquo;s Evernorth portfolio could help attract even more customers. Furthermore, Cigna has continuously flourished since 1984 by maintaining stability through careful service and care management.



On the date of publication, Viktor Zarev&nbsp;did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
The post <a href="https://investorplace.com/2024/04/3-healthcare-stocks-to-buy-now-q2-edition/">3 Healthcare Stocks to Buy Now: Q2 Edition</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Healthcare Stocks to Buy Now: Q2 Edition

Walgreens expands specialty pharmacy with unit dedicated to cell and gene therapies

Notable earnings before Friday's open

Centene Q1 2024 Earnings Preview

Centene beats top-line and bottom-line estimates; raises FY24 EPS outlook

Today, several major companies are expected to report earnings: Centene (CNC), Charter Communications (CHTR), Chevron (CVX), Colgate-Palmolive (CL)...

Options Volatility and Implied Earnings Moves Today, April 26, 2024

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Centene (NYSE:<a href="https://investorplace.com/stock-quotes/cnc-stock-quote/">CNC</a>) just reported results for the first quarter of 2024.<ul><li>Centene reported earnings per share of $2.26. This was above the analyst estimate for EPS of $2.08.</li><li>The company reported revenue of $40.41 billion.</li><li>This was 10.58% better than the analyst estimate for revenue of $36.54 billion.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	The post <a href="https://investorplace.com/earning-results/2024/04/cnc-stock-earnings-centene-for-q1-of-2024/">CNC Stock Earnings: Centene Beats EPS, Beats Revenue for Q1 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

CNC Stock Earnings: Centene Beats EPS, Beats Revenue for Q1 2024

Centene Corporation (CNC) Q1 2024 Earnings Call Transcript

In a report released today, Nathan Rich from Goldman Sachs maintained a Hold rating on Centene (CNC – Research Report). The company's shares closed...

Goldman Sachs Sticks to Its Hold Rating for Centene (CNC)

ABBV

AVTR

BALL

BLUE

CRSP

CVEO

GNTX

HTHIY

KMTUY

PIPR

RADCQ

SAIA

SLCA

TNET

TROW

VRTS

VRTX

YARIY

Press Releases

Health Net Providing Special Assistance to Members Affected by Winter Storms Throughout California

Ambetter from Sunshine Health and Tampa Bay Buccaneers Tackle Colorectal Cancer During Colorectal Cancer Awareness Month

Sunflower Health Plan and Centene Foundation Announce $160,000 Grant to Hays Medical Center Foundation

Health Net® Collaborates with Canary Health® to offer Free Online Caregiver Support Program

Health Net Federal Services Named Top Contact Center Awardee

Oklahoma Complete Health Now Serving SoonerSelect Members

Mayor's Fund's Eviction-prevention Program Receives $2.8 Million Investment from Bob & Dolores Hope Foundation and Health Net

Contracts

CENTENE SUBSIDIARY MERIDIAN IN MICHIGAN AWARDED MICHIGAN MEDICAID CONTRACTS

Mahmee Collaborates With Health Net to Provide Expecting and New Parents With Additional Doula and Wraparound Maternity Support