We encountered bullish papers on Waterboy alternatives at Centene Corporation. In this article, we will summarize the Bulls' paper on CNC. As of July 17, Centene Corporation's share was $29.14. According to Yahoo Finance, the CNC lagging and forward P/E are 4.30 and 9.13, respectively.
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Healthcare professionals discussing treatment plans with patients in outpatient clinics.
Centene Corporation is a major player in the custodial care sector and has been at the center of recent health insurance stocks driven by soaring costs, higher utilization rates and fraud charges. Sentiment worsened after President Trump signed the Big Bill Act (OBBBA) on July 4, 2025, which aims to cut Medicaid spending by $1 trillion over the next decade through stricter eligibility and shorter reporting times, Centene’s material, given its Medicare business’s business.
Stocks were penalized, including a 40% plunge in one day, after $1.8 billion of risk-adjusted payments adjusted for $1.8 billion, forcing management to force management to withdraw its 2025 EPS guidelines, although the balance sheet can absorb hits and premiums are likely to be reapplied. Founded in 1984 and established through active acquisitions, Centene now serves 25.8 million members and generates $158.1 billion in premiums in 2024, mainly from Medicaid.
Despite the net profit margin hovering around 2%, the profit received $19.7 billion in investment, earning 5.2% of investment, compared with 14.2% last year’s capital lighting model. The average free cash flow for five years is $4 billion, meaning only 4.7 times EV/FCF multiple companies, and under its $10 billion buyback program, management retained $2.23 billion to be able to retire nearly 15% of the stock at a downturn valuation.
While regulatory uncertainty over the gains, most of the shortcomings appear to be priced, but safety leeway is rooted in Centene’s asset base, bond contracts and cash creation. EPS growth may slow, but the stock's collapse offers counter-trends the opportunity to buy resilient franchises at multiples of crisis level if political headwinds are relaxed.
Previously, we covered Bullish papers In February 2025, long-term choice at Molina Healthcare, Inc. (MOH), despite profit pressure, the market growth and upside potential of new Medicaid and Medicare contracts is underlined. Since our coverage, the company's stock has depreciated by about 23.37% as higher medical expenses reach profit margins. The paper still exists. Waterboy has a similar view of Centene Corporation, but emphasizes the security of its valuation and elastic balance sheet.