Top 9 Healthcare Stocks to Buy According to Billionaire David Einhorn

3. Centene Corporation (NYSE:CNC)

Greenlight Capital’s Equity Stakes: $52.73 Million

Number of Hedge Fund Holders: 72

Centene Corporation (NYSE:CNC) is a healthcare enterprise providing programs and services to underinsured and uninsured families and commercial organizations. It is one of the top healthcare stocks in David Einhorn’s portfolio, holding steady amid growing investor confidence in defensive healthcare stocks. The stock is already up by more than 1% for the year, outperforming the S&P 500, which is on the brink of turning bearish.

The stock’s surge reflects rising confidence in its financial stability and restructuring initiatives. Centene Corporation (NYSE:CNC) has improved its core business by concentrating on Medicaid, Medicare, and ACA programs and simplifying operations. These calculated actions have given investors even more confidence in the company’s capacity for long-term success. Its premium and service revenues were up by 3% in Q4 of 2024, driven by Medicaid rate increases and membership growth in the Marketplace business.

Additionally, Centene Corporation (NYSE:CNC) is benefiting from growth in marketplace business due to strong product positioning and overall market growth. Consequently, its 2024 full year earnings per share increased by 7% to $7.17 on the back of a 12% increase in the marketplace and a 50% increase in Medicare PDP. The healthcare firm expects Q1 2025 earnings of $2.20 per share, a -2.7% year-over-year decline. It is anticipated that revenues will reach $43.47 billion, a 7.6% increase over the previous quarter.