12 Best Health Insurance Stocks to Buy in 2025

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8. Centene Corporation (NYSE:CNC)

Number of Hedge Fund Holders: 51

Centene Corporation (NYSE:CNC) is an American insurance company that provides government-sponsored and privately insured healthcare programs. The corporation provides a wide range of managed healthcare products and services, primarily through Medicaid, Medicare, and commercial products. The commercial segment provides health plan plan coverage to individuals and large and small employer groups. Centene Corporation (NYSE:CNC) is one of the best health insurance stocks to buy in 2025.

Oakmark Fund, advised by Harris Associates, discussed Centene Corporation (NYSE:CNC) in its Q4 2024 investor letter and noted that despite the company releasing resilient third-quarter 2024 results in the face of short-term industry pressure, its stock price still declined in Q4 2024. At its investor day in December 2024, Centene Corporation (NYSE:CNC) also gave above-consensus guidance for 2025 earnings per share (EPS). The fund believes that investor concern about how new laws after the US presidential election could affect the company was the main reason for the stock’s decline. Oakmark Fund believes that CNC has a lot of embedded earnings power to drive continued EPS growth, even if the political environment is not so favorable.

Centene Corporation (NYSE:CNC) presents a compelling investment opportunity. In its fourth quarter 2024 investor letter, Oakmark Fund also pointed out that Centene Corporation’s (NYSE:CNC) shares are trading at less than 9 times the 2025 EPS guidance, which is an attractive valuation for a company with strong returns on capital that operates in a growing industry.

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