CNC

Centene Corporation (CNC) is set to report Q3 2026 earnings on Oct. 27 with projected EPS of 7 cents and revenues of $47.06B, both declining year-over-year. While the company benefits from improving Medicaid margins and Marketplace profitability, it faces headwinds from shrinking commercial and Medicaid memberships.

The stock has rallied 70.7% YTD but trades at elevated valuations relative to historical levels. Existing investors may hold positions while new investors should await better entry points.

Humana (HUM) reported 25% YoY premium growth in H1 2026 driven by Medicare Advantage membership expansion, with Insurance and CenterWell segments growing 24.5% and 21.2% respectively. However, the company faces headwinds from a 180 basis point increase in benefit ratio to 90.2% and a 26.1% surge in operating expenses. Competitors Elevance Health and Centene are also navigating challenges with elevated medical costs and declining government-sponsored membership.

UnitedHealth Group is prioritizing Chronic Special Needs Plans (C-SNPs) and Dual Eligible Special Needs Plans (D-SNPs) for 2027 to drive targeted Medicare Advantage growth. UNH expects Medicare margins near the upper end of its 2%-4% target in 2026, with at least 69% of its Medicare Advantage members in four-star or higher rated plans. The company faces competition from Humana and Centene, which are also expanding specialized Medicare Advantage offerings.

Centene Corporation will launch its National Performance-Based Gold Card Program nationwide in November 2026, covering over 160,000 providers and allowing qualifying providers to bypass prior authorization for eligible outpatient services. The initiative aims to reduce administrative burden and processing costs while maintaining clinical oversight. Centene trades at 13.13x forward earnings with 2026 EPS estimated to grow 135.1% to $4.89, though the stock carries a Zacks Rank #4 (Sell) rating.

Centene (CNC) and Molina Healthcare (MOH) are compared as major players in U.S. managed care with significant Medicaid exposure. Centene benefits from diversified operations across Medicaid, Medicare, and Marketplace plans, improving margins, and strong financial position with lower leverage.

Molina faces near-term profitability pressures from reimbursement challenges and Marketplace headwinds, though its expanding Medicaid contracts and Medicare Duals strategy offer long-term growth. Analysts favor Centene for near-term upside based on stronger earnings estimates, valuation, and recent stock performance.

Centene Corporation (CNC) has surged 57% year-to-date, outperforming peers and the broader market, driven by improving Medicaid margins and strengthened Marketplace profitability. The company raised 2026 adjusted EPS guidance above $4.80, though approximately 50 cents per share will not recur in 2027. Trading at 12.34X forward earnings below industry average, CNC carries a Hold rating as investors await evidence that margin gains can sustain into 2027 amid risks including membership losses and policy exposure.

Centene Corporation is restructuring its Medicare Advantage business for 2027, pulling standard MA plans from 344 counties and exiting Hawaii, Oklahoma, and Tennessee due to unfavorable economics. The company is shifting focus toward Special Needs Plans and dual-eligible members while leveraging its Part D platform. Competitors UnitedHealth and Humana are also refining their MA footprints with similar selective approaches as medical and pharmacy costs pressure plan profitability.

Zacks Investment Research identifies five growth stocks with Zacks Rank #1 (Strong Buy) ratings expected to perform well in Q4 2026, supported by softer inflation, lower bond yields, and reduced crude oil prices. The picks include Quanta Services (infrastructure/AI data centers), FormFactor (semiconductor testing), Semtech (data center networking), Centene (healthcare services), and Roku (streaming advertising), all showing strong revenue and earnings growth projections.

Zacks highlights Centene (CNC) as a compelling value stock pick, citing its Zacks Rank #1 (Strong Buy) rating and 'A' Value grade. The company trades at a P/E ratio of 12.35 versus its industry average of 14.96, with a PEG ratio of 0.82 and P/S ratio of 0.15, suggesting the stock is undervalued relative to its earnings growth prospects and industry peers.

Recent economic data shows PCE inflation came in softer than expected while Q2 GDP exceeded expectations. Market attention is now focused on the upcoming Friday employment report. Three stocks with Zacks Rank #1 ratings are highlighted: Centene (healthcare), ATI Inc. (specialty materials), and BP (energy), all showing positive earnings estimate revisions.

Zacks.com highlights five stocks with low price-to-book ratios and strong growth potential: Banco Macro, Centene, EnerSys, Gibraltar Industries, and Kennametal. These companies are identified as potentially undervalued with attractive return prospects based on valuation metrics and projected earnings growth rates ranging from 15% to 32.4% over 3-5 years.

Five stocks with low price-to-book ratios have been identified as potentially undervalued investment opportunities. These companies—Banco Macro, Centene, EnerSys, Gibraltar Industries, and Kennametal—all meet key value-screening criteria with Zacks Rank #1 or #2 ratings and Value Scores of A or B. The stocks show projected 3-5-year EPS growth ranging from 15% to 32.4%, with Centene leading at 32.4% growth.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings as of September 29th: Centene (CNC), a diversified healthcare company with 7% earnings estimate growth; monday.com (MNDY), a software platform provider with 22.5% earnings estimate growth; and ATI Inc. (ATI), a specialty materials producer with 12.1% earnings estimate growth. All three companies show favorable PEG ratios compared to their respective industries.

UnitedHealth Group reported Q3 adjusted earnings of $4.69 per share, beating estimates by 13.9% with a 60.6% year-over-year increase. The company raised its 2026 EPS outlook to at least $20.50, driven by improved margins and lower medical costs.

However, membership declined to 48.3 million from 50.1 million, raising questions about long-term sustainability. Optum also showed strong recovery with margins expanding to 5.6%. The stock carries a Zacks Rank #2 (Buy) rating with valuation below historical medians.

Oscar Health (OSCR) has surged 130% year-to-date driven by ACA marketplace expansion and plans to enter 150+ metro areas by 2027. However, the stock trades at a premium 4.94 price-to-book ratio versus the industry average of 2.64, and long-term profitability depends on disciplined underwriting and cost management rather than favorable policy conditions alone. Concentration risk from ACA exposure and potential subsidy policy changes pose headwinds.

Oscar Health (OSCR) trades at a premium valuation of 4.65x book value but has gained 142.5% year-to-date, driven by strong membership growth to 2.96 million, 70% revenue surge to $4.88 billion in Q2, and improved profitability. The company targets 20% revenue CAGR through 2027 and 5% operating margin next year, supported by its technology-driven platform and expansion into 150+ new metropolitan areas. Analysts maintain optimistic sentiment with upward earnings estimate revisions.