12 Best Healthcare Stocks Under $50 to Invest In

2. Centene Corporation (NYSE:CNC)

Number of Hedge Fund Holders: 72

Centene Corporation (NYSE:CNC) is one of the best healthcare stocks under $50 to invest in. Morgan Stanley reaffirmed a Hold rating on Centene Corporation (NYSE:CNC) on February 6, setting a price target of $38.00.

The rating update came the same day Centene Corporation (NYSE:CNC) announced its 2025 results and guidance, reporting 2025 full year GAAP diluted loss per share of $13.53 and adjusted diluted Earnings Per Share of $2.08. Management reported a consolidated HBR of 94.3% in fiscal Q4 2025, which includes a Commercial HBR of 95.4%, which was 100 basis points above expectations, driven by net out-of-period items. In addition, Medicaid HBR was 93.0% in the quarter, representing 40 basis points of sequential improvement compared to Q3 and reflecting continued progress.

Centene Corporation (NYSE:CNC) further stated that it is positioned to deliver renewed adjusted diluted EPS growth and meaningful margin improvement in 2026, and expects full-year 2026 adjusted diluted EPS to be greater than $3.00. This marks significant progress toward restoring the enterprise’s embedded earnings power.

Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides programs and services to government-sponsored healthcare programs. The company’s operations are divided into the following segments: Medicaid, Medicare, Commercial, and Other.