Overview
- Centene absorbed roughly a $2.4 billion charge tied to a sicker Affordable Care Act member pool, taking the full impact in the latest quarter.
- Management cut 2025 earnings guidance to about $1.75 per share from a prior $7.25, signaling ongoing near-term profit pressure.
- Shares fell to decade‑low levels near $25 and trade at depressed valuation multiples, including single‑digit trailing P/E figures cited by Yahoo Finance.
- Early state approvals indicate sizable ACA premium increases averaging around 27%, which proponents say could support a 2026 earnings recovery.
- Analyst commentary highlights elevated medical costs and questions around Centene’s historical advantages, framing the stock as high‑risk with potential multi‑year upside if margins normalize.