Why Centene Corporation (CNC) Declined on Tuesday

We recently published an article titled Massive Sell-Offs Just Hit These 10 Stocks Today. In this article, we are going to take a look at where Centene Corporation (NYSE:CNC) stands against the other stocks.

Wall Street’s main indices finished mixed on Tuesday, as investors digested the country’s latest inflation figures, which came out lower than expected.

On Tuesday, the Labor Department reported that the Consumer Price Index for April rose by only 0.2 percent last month, bringing the annual inflation rate to 2.3 percent, versus the 2.4 percent in March. It was the lowest annual rate since February 2021.

Only the S&P 500 and the tech-heavy Nasdaq registered gains among all major indices, up by 0.72 percent and 1.61 percent, respectively. The Dow Jones, on the other hand, was down by 0.64 percent.

Beyond the main indices, 10 firms lagged in performance amid negative news, sparking sell-offs.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

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

Centene Corporation (NYSE:CNC)

Centene Corporation (NYSE:CNC) dropped its share prices by 6.20 percent on Tuesday to close at $58.97 apiece, in line with the drop in healthcare stocks and the lack of fresh catalysts to boost investing appetite.

In recent news, Centene Corporation (NYSE:CNC) reported an impressive earnings performance in the first quarter of the year, with net income attributable to the company jumping 12.7 percent to $1.3 billion from $1.16 billion in the same period last year. Revenues also increased by 15 percent to $46.6 billion from $40.4 billion year-on-year.

The strong figures propelled the company’s revenue growth guidance for full-year 2025, with a target of $164 billion to $166 billion.

“Our first quarter results demonstrate the resiliency of Centene’s platform and the progress we are making as an organization while navigating a dynamic policy landscape,” said Centene Corporation (NYSE:CNC) CEO Sarah London.

“We are pleased to reiterate our full year 2025 adjusted diluted earnings per share outlook of greater than $7.25 and continue to see attractive opportunities to grow from the strength of our core businesses in the years to come,” she added.

Overall CNC ranks 10th on our list of Tuesday’s worst performers. While we acknowledge the potential of CNC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CNC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.