5 Most Undervalued Stocks to Buy and Hold for 2 Years

3. Centene Corporation (NYSE:CNC)

Number of Hedge Fund Holders: 72

Centene Corporation (NYSE:CNC) is one of the most undervalued stocks to buy and hold for 2 years. On April 28, Centene Corporation reported strong Q1 2026 financial results, with adjusted diluted EPS of $3.37, outperforming internal expectations by ~$0.50. Driven by this solid start, the company has increased its full-year 2026 adjusted diluted EPS guidance to greater than $3.40. During the quarter, Centene also successfully reduced its debt by $1.0 billion.

Operational performance remained robust across its primary business lines. The Medicaid segment achieved an 87.3% health benefits ratio/HBR, aided by effective medical cost management and moderate flu trends, while the Medicare segment saw outperformance in both Medicare Advantage and Prescription Drug Plans/PDP. Although the Commercial segment’s HBR of 75.3% was slightly above expectations due to higher-acuity Marketplace members, total premium and service revenues grew 5% year-over-year to $44.7 billion.

Centene continues to balance its financial growth with significant community engagement, including new initiatives for affordable housing, diabetes-related nutritional support, and provider accessibility for patients with disabilities. Fortune also recognized the company as one of the World’s Most Admired Companies for the eighth consecutive year, reflecting Centene’s ongoing commitment to operational discipline and its long-term enterprise 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.