Centene Stock Hit A New 52-Week Low Today: What's Going On?

Shares of Centene Corp CNC are trading lower on Thursday, hitting a new 52-week low, as worsening news from a key competitor intensified investor fears about the profitability of government-sponsored health plans.

What To Know: The sell-off was triggered by Elevance Health, which reported a miss on second-quarter earnings and drastically slashed its full-year profit guidance, validating the market pressures Centene itself had recently flagged.

Elevance cut its 2025 adjusted earnings forecast from over $34 per share to approximately $30, citing "elevated medical cost trends" in its Affordable Care Act (ACA) and Medicaid businesses. The company's benefit expense ratio swelled, indicating it was paying out more than expected for member medical care, a direct hit to its bottom line.

This announcement pours salt on an open wound for Centene, a company heavily focused on the ACA marketplace and Medicaid. Earlier in July, Centene's stock suffered a historic collapse after it withdrew its own 2025 financial outlook.

The company's decision followed an actuarial data review showing its member base was sicker and more expensive than projected, leading to an anticipated $1.8 billion reduction in risk adjustment revenue.

Elevance's guidance shock confirms that the high medical costs and risk-pricing challenges are a sector-wide crisis, not a problem isolated to Centene.

Benzinga Edge Rankings: According to Benzinga Edge, which ranks stocks based on four critical factors, Centene exhibits a distinct profile of strengths and weaknesses. The stock scores exceptionally well on Value, with a rating of 91.06, suggesting it is significantly undervalued compared to its peers or fundamental worth.

It also shows solid Growth potential with a score of 69.56. However, these positive attributes are sharply contrasted by extremely low scores in Momentum (6.04) and Quality (5.46).

This combination indicates that while the stock may be cheap with good growth prospects, its recent price performance has been very poor and its underlying financial health could be a concern.

Price Action: According to data from Benzinga Pro, CNC shares are trading lower by 2.93% to $29.52 Thursday morning. The stock has a 52-week high of $80.59 and a 52-week low of $29.30.

Read Also: Elevance Steps In As UnitedHealth Delays — Will It Set The Tone For Insurers?

How To Buy CNC Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Centene’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock