Centene (CNC) Falls 11.1% on Investor Caution Ahead of Q2

We recently published These 10 Stocks Fell Hard. Are You Holding Any? Centene Corporation (NYSE:CNC) is one of this week’s top performers.

Centene fell by 11.1 percent week-on-week, from $31.44 on July 11 to $27.95 last Friday—a new all-time low, as investors turned cautious ahead of its second quarter earnings results, further dampened by one of its peers’ dismal earnings performance.

During the week, its fellow insurer Elevance Health, reported a 24.2-percent drop in net income during the second quarter of the year and updated its outlook to reflect elevated medical cost trends under the Affordable Care Act and slower rate alignment in Medicaid, both of which are also being offered by Centene Corporation (NYSE:CNC).

Last month, Centene Corporation (NYSE:CNC) withdrew its 2025 earnings forecast due to an expected slump in its revenues from commercial plans under the ACA or Obamacare. The withdrawal triggered a review from credit ratings issuer S&P Global Ratings, saying that it is likely to set the company’s status to “junk.”

A doctor holding a clipboard in a hospital ward, discussing patient treatment plan with the nurses.

“With the removal of earnings guidance, we have less immediate clarity and confidence on the company’s capital adequacy trajectory, as well as the overall strength of its business and execution capabilities,” S&P said.