5 Best Healthcare Stocks to Buy for the Long Term

2. Centene Corporation (NYSE:CNC)

Number of Hedge Fund Holders: 78

Centene Corporation (NYSE:CNC) is one of the best healthcare stocks to buy for the long term. TD Cowen lifted the price target on Centene Corporation (NYSE:CNC) to $48 from $38 on May 4, reaffirming a Hold rating on the shares. The firm updated its model on the stock after its fiscal Q1 financial results, stating that management believes there is potential guidance upside from conservative HIX risk adjustment assumptions.

Centene Corporation (NYSE:CNC) reported its fiscal Q1 2026 results on April 28, with first-quarter GAAP diluted earnings per share of $3.11 and adjusted diluted earnings per share of $3.37, approximately $0.50 better than its expectations. Centene Corporation (NYSE:CNC) also raised its 2026 GAAP diluted EPS guidance to greater than $2.37 and adjusted diluted EPS to greater than $3.40.

The company further reported that premium and service revenues in fiscal Q1 2026 rose 5% to $44.7 billion from $42.5 billion in the comparable period of 2025, with management attributing the growth to premium yield and membership growth in the PDP business, state-directed payments, and rate increases to address medical trends in the Medicaid business.

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.