Core Viewpoint - The U.S. health insurance industry, particularly Health Maintenance Organizations (HMOs), is leveraging strategic mergers and acquisitions along with technological innovations to enhance market presence and competitiveness despite rising medical costs and regulatory pressures [1][3]. Industry Overview - The HMO industry includes entities that provide basic and supplemental health services, assuming risks and assigning premiums to health insurance policies [4]. - Services are typically offered through a network of approved care providers, with exceptions for emergencies [5]. Current Trends - Rising medical expenses are driven by deferred care, chronic disease management, and increasing costs of specialty drugs, leading to higher healthcare utilization and insurance claims [6][7]. - Demographic trends, such as an aging population and increased chronic illnesses, are intensifying long-term cost pressures, straining the Health Benefit Ratio and compressing profit margins [7]. - Regulatory challenges are significant, with proposals potentially reducing federal Medicaid funding and altering Medicare Advantage payment rates, creating uncertainty for health insurers [8][9]. - The ongoing shortage of healthcare professionals, particularly nurses, is impacting hospital operations and the quality of care provided by HMOs [11][12]. Strategic Focus - HMOs are increasingly engaging in mergers and acquisitions to enhance capabilities and market reach, supported by favorable interest rates from the Federal Reserve [13][14]. - The anticipated Medicare Advantage rate increases in 2026 may provide some margin support for insurers [10]. Industry Performance - The Zacks Medical-HMO industry has underperformed, declining 25.8% over the past year compared to the S&P 500's growth of 2.4% [18]. - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 16.04X, lower than the S&P 500's 23.35X and the sector's 20.92X [19]. Company Highlights - **UnitedHealth Group**: Driven by strong performances in its UnitedHealthcare and Optum segments, with a consensus estimate for 2025 earnings at $16.29 per share, indicating an 11.9% revenue growth [21][22]. - **Humana**: Steady growth supported by rising premiums and an expanding membership base, with a 2025 earnings estimate of $17.08 per share, reflecting a 5.4% increase from 2024 [23][24]. - **Centene**: Revenue growth fueled by its Medicare and Medicaid businesses, with a 2025 earnings estimate of $2.00 per share, indicating an 18.5% growth from 2024 [25][26].

The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is capitalizing on strategic mergers and acquisitions (M&A) and technological innovation to expand its market presence, diversify offerings and enhance competitiveness. The Federal Reserve’s projected interest rate cuts for 2026 are expected to lower borrowing costs, encouraging more M&A activity without heavily drawing on internal reserves. On the downside, medical expenses are rising due to the return of deferred car ...

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Member Prescription Information During a declared State of Emergency, impacted members have two options to secure an emergency supply of their medications: Coping Support for Members SACRAMENTO, Calif., Dec. 11, 2025 /PRNewswire/ -- Following Gov. Newsom's declaration of a State of Emergency in Mono County, Health Net, one of California's most experienced Medi-Cal managed care health plans and company of Centene Corporation (NYSE: CNC), is taking immediate action to support those affected by the Pack Fire. ...

U.S. stocks were mixed, with the Dow Jones gaining more than 600 points on Thursday.Shares of Diamond Hill Investment Group Inc (NASDAQ:DHIL) rose sharply during Thursday's session after First Eagle agreed to acquire the company for $175 per share in a $473 million all-cash deal.Diamond Hill Investment Group shares jumped 45.3% to $170.74 on Thursday.Here are some other big stocks recording gains in today’s session.Planet Labs PBC (NYSE:PL) gained 29.7% to $16.79 after the company reported better-than-expec ...

Core Insights - Hotchkis & Wiley Mid-Cap Value Fund reported strong performance in Q3 2025, outperforming the Russell Midcap Value Index with a gain of 7.74% compared to 6.18% for the index, driven by enthusiasm over AI, a Federal Reserve rate cut, and robust corporate earnings [1] Company Overview - Centene Corporation (NYSE:CNC) is a healthcare enterprise focused on managed Medicaid, serving approximately 28 million at-risk health insurance enrollees [3] - As of December 09, 2025, Centene's stock closed at $38.08 per share, with a market capitalization of $18.717 billion [2] Performance Metrics - Centene's one-month return was 5.19%, but it experienced a significant decline of 33.08% over the past 52 weeks [2] - Following a disappointing quarterly earnings report, Centene's shares fell during the quarter, trading at approximately 4.8 times normal earnings, indicating potential attractiveness as a market leader in a growing Medicaid market [3] Market Outlook - The Medicaid market is projected to grow at a rate of 6% per year from 2020 to 2027, driven by increased spending per member, suggesting a favorable growth environment for Centene [3] - Despite the potential of Centene as an investment, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]

We came across a bullish thesis on Centene Corporation on Value investing subreddit by paoee. In this article, we will summarize the bulls’ thesis on CNC. Centene Corporation's share was trading at $39.34 as of November 28th. CNC’s trailing and forward P/E were 8.94 and 13.11 respectively according to Yahoo Finance. Tempus AI, Inc. (TEM) Gains CMS Approval for AI-Enabled Cardiac Dysfunction Assessments Image Point Fr/Shutterstock.com Centene Corporation operates as a healthcare enterprise that provides ...

With a market cap of $19.1 billion, Centene Corporation (CNC) is a U.S.-based healthcare enterprise that serves under-insured and uninsured individuals, as well as commercial organizations. It operates through four key segments: Medicaid; Medicare; Commercial; and Other, offering a wide range of health programs and related services. Companies valued over $10 billion are generally described as “large-cap” stocks, and Centene fits right into that category. The company delivers care through networks of physi ...

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, recently released its third-quarter 2025 investor letter for “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index posted positive returns in the quarter, fueled by strong corporate earnings, the continued momentum in artificial intelligence (AI) infrastructure, and the anticipation of the U.S. Federal Reserve’s (Fed) interest rates. In addition, please check the fund’s top five holdings to know ...

"We're committed to improving access to healthy food and to making a difference in people's lives," said Cristal Gary, Meridian Plan President and CEO. "Through this partnership with the St. Louis Area Foodbank, Food On The Move creates a vital pipeline to combat food insecurity and improve health outcomes. Together, we can deliver critical food and health resources directly to those who need them most." In 2024, Food On The Move provided support to roughly 12,000 individuals across 4,300 households. By Ma ...