5 Best Stocks to Buy in 2021 According to Louis Navellier

4. Centene Corporation (NYSE: CNC)

Navellier’s Stake Value: $284,000
Percentage of Louis Navellier’s 13F Portfolio: 0.05%
No. of Hedge Fund Holders: 53

Centene Corporation (NYSE: CNC) is a healthcare company that offers services and programs to uninsured and underinsured people in the U.S. The company is currently acquiring Magellan Health and is expected to finalize the process within the second half of 2020. Centene agreed to acquire Magellan Health for $2.2 billion earlier this year.

Centene generated $29.98 billion revenue in Q1 2021, outpacing the consensus estimate by $470 million. 

In its Q3 2020 investor letter, FPA Capital Fund highlighted a few stocks and Centene Corp (NYSE:CNC) is one of them. Here is what FPA Capital Fund said:

“CNC was the Fund’s 2 nd worst performer for the quarter. The company is a managed care organization (discussed in more detail in prior commentaries). The stock declined on election uncertainty and on the increased likelihood that the Supreme Court might strike down the Affordable Care Act due to the death of Supreme Court Justice Ginsburg. CNC does have the headline risk, but the stock is trading at 10x 2021 price to earnings multiple versus its long term historical average of 16x. 6 Its COVID-19 costs appear to be in line with expectations and the worst long term effect from a repeal of the Affordable Care Act is estimated to be a 10% hit to earnings. 7 We believe that any likely political scenarios would not cause a major longterm disruption to the company while its valuation appears to price in a much more dire scenario.”