2. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders: 72
Centene Corporation (NYSE:CNC) is a leading managed healthcare company specializing in government-sponsored programs such as Medicaid, Medicare, and the Affordable Care Act marketplace. Founded in 1984, CNC serves millions of members across the US, providing comprehensive healthcare solutions, including behavioral health, pharmacy benefits, and specialty services. The company also operates Tricare for military families and correctional healthcare programs. With a strong focus on underserved communities, CNC partners with state and federal agencies to improve access to quality healthcare while managing cost-effective care delivery. The US-based company ranked eighth on a recent list of 12 Best Health Insurance Stocks to Buy in 2025.
Centene Corporation (NYSE:CNC) reported 4Q 2024 adjusted diluted EPS of $0.80 and full year 2024 adjusted diluted EPS of $7.17, demonstrating strong results and durable earnings power. The company has increased its full year 2025 revenue guidance by $4 billion, driven by better-than-expected results during Medicare annual enrollment period and a Medicaid program expansion. In the Medicaid segment, the company achieved a mid-4% composite rate adjustment for 1/1/25 effective rates and expects a full year 2025 composite rate adjustment of 3% to 4%. The Medicare business showed significant progress with 55% of members associated with 3.5 star plans or better, up from 23% last year.
In the Marketplace segment, January enrollment turned out stronger than anticipated, with peak membership expected to be slightly above 5 million members during the next quarter. Centene Corporation (NYSE:CNC)’s Part D business is positioned for growth in 2025 with expected revenue of approximately $16 billion, better than previous expectations. Looking ahead, CNC is stepping into 2025 with a clear strategy, compelling embedded earnings power and positive momentum within each line of business, with significant earnings power embedded in the business including $3 to $4 of adjusted EPS opportunity to unlock over time.
