We recently published Jim Cramer’s Fresh 14 Stocks & Thoughts About Market Performance. Centene Corporation (NYSE:CNC) is one of the stocks Jim Cramer recently discussed.
Centene Corporation (NYSE:CNC) is another healthcare benefits management company. The firm’s shares were decimated in July after they fell by an unbelievable 41%. The stock was obliterated after Centene Corporation (NYSE:CNC) stunned investors by pulling its fiscal year 2025 guidance. The firm explained that weaker enrollments and higher-than-expected illnesses among patients had fueled the decision. Safe to say, “brutal” might be an understatement for the blow dealt to Centene Corporation (NYSE:CNC):
“Centene was so brutal. Brutal because the late Michael Neidorff, who was just a regular guest on Mad Money, he figured out how to provide high care, good care for HCA. But if you’re not going to get paid, it’s the worst possible combination.
A doctor holding a clipboard in a hospital ward, discussing patient treatment plan with the nurses.
Previously, Cramer discussed Centene Corporation (NYSE:CNC)’s business after the 40% crash:
“Today, some of the biggest losers in the market were a handful of managed care companies led by a company called Centene… That stock plunged over 40%. This is the worst single-day performance on record because last night after the close, the company withdrew its full-year forecast…
And what’s left now that the more healthy people are no longer enrolling is a less healthy population, which, of course, is bad news for the insurers. Because Centene’s the largest player in the healthcare exchange space, they’re getting the hardest hit, okay? Unfortunately, I think the situation’s only going to get worse. In order to account for the new situation, Centene will likely have to raise its premiums, which will lead to fewer people enrolling…
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Disclosure: None. This article is originally published at Insider Monkey.
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