Valuation Metrics - The price-to-earnings (P/E) ratio is a common valuation metric, but for companies with losses or minimal profits, the price-to-sales (P/S) ratio is more effective in identifying undervalued stocks [1] - The price-to-book (P/B) ratio is another useful tool for identifying low-priced stocks with high growth potential, calculated by dividing the stock's current price by its book value per share [2][6] Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [4][5] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][7] Stock Examples - Centene Corporation (CNC) is a diversified healthcare company with a projected 3-5 year EPS growth rate of 11.5%, currently holding a Zacks Rank of 2 and a Value Score of A [16][17] - Pediatrix Medical Group (MD) provides specialized physician services with a projected EPS growth rate of 9.5% and also holds a Zacks Rank of 2 and a Value Score of A [18][19] - Pfizer (PFE), a major pharmaceutical company, has a projected EPS growth rate of 13.8% and maintains a Zacks Rank of 2 and a Value Score of A [19] - StoneCo (STNE) offers financial technology solutions with a projected EPS growth rate of 26.3%, holding a Zacks Rank of 1 and a Value Score of B [20] - Banco Santander (SAN), the largest bank in Spain, has a projected EPS growth rate of 9.6% and a Zacks Rank of 2 with a Value Score of A [21][22] Screening Parameters - Stocks with a P/B ratio less than the industry median indicate potential for price appreciation [12] - A P/S ratio lower than the industry average makes a stock more attractive [12] - A P/E ratio (F1) below the industry median is considered favorable [13] - A PEG ratio of less than 1 suggests that a stock is undervalued relative to its growth prospects [14] - Stocks should have a minimum trading price of $5 and an average 20-day volume of at least 100,000 for better liquidity [15]

Core Insights - The Q1 2025 earnings cycle is heavily focused on guidance, influenced by recent economic uncertainties and tariff announcements [1][9] - Several companies, including Centene, Boston Scientific, and Celestica, have raised their guidance, indicating positive performance [2][17] Centene (CNC) - Centene reported an adjusted EPS of $2.90 and sales of $46.6 billion, exceeding consensus estimates with a year-over-year earnings growth of 28% [3] - The company raised its 2025 premium and service revenues guidance by $6.0 billion, reflecting a 17% year-over-year improvement [3][6] - Analysts now expect Centene to post $172.8 billion in revenues for the current fiscal year, with a favorable Zacks Rank 2 (Buy) [6] Boston Scientific (BSX) - Boston Scientific surpassed both top and bottom line expectations, achieving a 12% EPS beat and sales 2.3% above expectations [8] - The company now anticipates FY25 sales growth between 15% and 17%, with current year sales expectations adjusted to $19.4 billion, a 10% increase from the previous year [10] Celestica (CLS) - Celestica exceeded Zacks Consensus EPS estimates by 8% and reported sales nearly 4% ahead of expectations, with a year-over-year sales growth of 20% [12] - The company raised its full-year 2025 revenue outlook to $10.85 billion from $10.7 billion, expecting non-GAAP adjusted EPS of $5.00, up from $4.75 [13] - Strong demand for solutions amid the AI trend and a shift to higher-margin products contributed to Celestica's stellar performance [13]

Financial Data and Key Metrics Changes - The company reported first quarter adjusted diluted EPS of $2.90, consistent with previous expectations, and maintained full-year 2025 adjusted EPS expectations of greater than $7.25 [5][24][37] - Premium and service revenue for Q1 reached $42.5 billion, with an increase in full-year revenue guidance to a midpoint of $165 billion, up from $159 billion [26][38] - The adjusted SG&A expense ratio improved to 7.9% from 8.7% year-over-year, reflecting better expense management [35] Business Line Data and Key Metrics Changes - Medicaid membership remained stable at approximately 12.9 to 13 million members, with a Medicaid HBR of approximately 93%, showing slight improvement from 93.4% in Q4 2024 [27][28] - The Medicare segment's HBR was 86.3%, with expectations of an inverted slope due to changes from the Inflation Reduction Act [32] - The commercial segment saw strong growth, with a Q1 HBR of 75.0%, up from 73.3% the previous year, driven by new marketplace members [34] Market Data and Key Metrics Changes - The company noted an increase in flu-related medical expenses of $130 million in Q1, which impacted overall performance but was expected to be a transitory issue [12][28] - The company anticipates a full-year composite Medicaid rating increase of over 4% [30] - The Medicare Advantage membership is projected to contribute an additional $1 billion to revenue guidance for 2025 due to better-than-expected retention [16] Company Strategy and Development Direction - The company is focused on margin recovery and aligning rates with member acuity across various geographies [11] - Strategic initiatives include advocating for sound health care policy and executing on contract wins in Medicaid, such as in Illinois and Nevada [14][15] - The company aims to achieve breakeven in Medicare Advantage by 2027, leveraging STARZ results and operational efficiencies [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic policy landscape, noting bipartisan support for extending health care premium tax credits [8][9] - The company remains optimistic about long-term growth, citing the attractiveness of end markets and the potential for market share capture [24][25] - Management acknowledged the challenges posed by high-cost drugs and the need for continued focus on operational efficiency [78][120] Other Important Information - The company is preparing for potential changes in the marketplace due to proposed rules from CMS, which could impact market dynamics starting in 2026 [22][42] - The risk corridor mechanism is expected to provide some protection against high specialty drug costs, which are anticipated to increase in 2026 [109][126] Q&A Session Summary Question: Details on flu-related costs and their impact - Management confirmed that the $130 million in flu-related costs was tracked closely and isolated to Medicaid, with no significant impact on Medicare [49][51] Question: Long-term earnings potential - Management reiterated optimism about expanding Medicaid margins and achieving breakeven in Medicare Advantage, with potential for revenue growth [54][56] Question: Impact of public exchange subsidies - Management indicated that the estimate of a $1 impact per share from the loss of enhanced APTCs remains valid, with ongoing discussions about potential extensions [57][61] Question: Risk adjustment and membership growth - Management noted that risk adjustment numbers remained consistent with expectations, and the majority of new membership is subsidized, aligning with the company's focus on low-income populations [96][99] Question: Specialty drug trends - Management highlighted the increasing trend in specialty drug utilization, particularly in non-low-income PDP members, and the need for states to adapt their programs accordingly [118][120]

Centene Corporation (CNC) reported first-quarter 2025 adjusted earnings per share (EPS) of $2.90, which surpassed the Zacks Consensus Estimate by 22.9%. Moreover, the bottom line climbed 28% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Revenues advanced 15.4% year over year to $46.6 billion. The top line beat the consensus mark by 7.2%.The quarterly results benefited on the back of solid premium growth fueled by expanding membership in the Prescription Drug Plan (PDP ...

Financial Data and Key Metrics Changes - The company reported first quarter adjusted diluted EPS of $2.90, consistent with previous expectations, with full-year 2025 adjusted EPS expectations remaining unchanged at greater than $7.25 [5][24][37] - Premium and service revenue for Q1 was $42.5 billion, with an increase in full-year revenue guidance to a midpoint of $165 billion, up from $159 billion [26][38] - The adjusted SG&A expense ratio decreased to 7.9% from 8.7% year-over-year, driven by revenue growth and expense discipline [35] Business Line Data and Key Metrics Changes - Medicaid membership was stable at approximately 12.9 to 13 million members, with a Medicaid HBR of approximately 93%, showing slight improvement from 93.4% in Q4 2024 [27][28] - The Medicare segment performed in line with expectations, with Medicare Advantage membership contributing an additional $1 billion to the 2025 revenue outlook due to better-than-expected retention [16][31] - The commercial segment saw strong growth, with a Q1 HBR of 75.0%, up from 73.3% the previous year, driven by new marketplace members [34] Market Data and Key Metrics Changes - The company noted an increase in bipartisan support for extending health care premium tax credits, with 78% of swing voters supporting the extension [9] - The expiration of enhanced premium tax credits is anticipated to be addressed by Congress, with significant implications for the marketplace [10][23] - The company is preparing for potential impacts from proposed marketplace integrity and affordability rules, which could influence market dynamics starting in 2026 [22][42] Company Strategy and Development Direction - The company is focused on margin recovery and aligning rates with member acuity, with expectations that Medicaid will return to pre-pandemic margin levels [11][13] - Strategic initiatives include expanding Medicaid managed care into rural areas and enhancing the Medicare Advantage value proposition [14][16] - The company is committed to navigating the evolving policy landscape while advocating for sound health care policy [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage through a dynamic policy landscape, noting that broad support for Medicaid benefit cuts is lacking [7][8] - The company anticipates continued momentum in discussions with state partners regarding rate negotiations and acuity data [75] - Management remains optimistic about long-term growth prospects, emphasizing the attractiveness of end markets and the potential for market share capture [24][25] Other Important Information - The company experienced $130 million in incremental medical expenses due to an active flu season, which offset underlying improvements in medical loss ratio [12][28] - The company is actively engaging with CMS on proposed rules that could impact the marketplace and is preparing for various potential outcomes [22][23] Q&A Session Summary Question: Details on flu-related costs - Management clarified that the $130 million in flu-related costs was tracked using a consistent definition and was isolated to Medicaid, with some flu impact seen in Medicare but not at the same level [49][51] Question: Long-term earnings outlook - Management confirmed that the long-term earnings potential remains optimistic, with opportunities for margin expansion in Medicaid and Medicare segments [54][56] Question: Impact of public exchange subsidies - Management indicated that the estimate of a $1 impact per share from the potential loss of enhanced APTCs remains valid, with ongoing discussions about the implications of work requirements [57][61] Question: Risk adjustment and membership growth - Management noted that risk adjustment numbers are consistent with expectations, and the majority of new membership remains subsidized, aligning with the company's focus on low-income populations [99][96] Question: Specialty drug trends - Management highlighted that specialty drug utilization trends are being closely monitored, particularly in Medicaid, with high-cost drugs impacting overall costs [118][120]

Core Insights - Centene reported $46.62 billion in revenue for Q1 2025, a 15.4% year-over-year increase, with an EPS of $2.90 compared to $2.26 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company delivered a revenue surprise of +7.24% and an EPS surprise of +22.88% compared to analyst expectations [1] Financial Performance Metrics - Total Medical Health Benefits loss ratio was 87.1%, better than the estimated 87.9% [4] - Membership in High Acuity Medicaid stood at 1.59 million, matching analyst estimates [4] - Medicaid membership reached 12.96 million, slightly above the 12.94 million estimate [4] - SG&A Expense Ratio was 7.9%, lower than the estimated 8.4% [4] - Premium and service revenues totaled $42.49 billion, exceeding the $40.12 billion estimate, reflecting a 16.9% year-over-year increase [4] - Premium revenues were $41.71 billion, surpassing the $39.35 billion estimate, marking a 17.4% year-over-year change [4] - Service revenues were $777 million, slightly above the $768.54 million estimate, but a 3.8% decrease year-over-year [4] - Premium tax revenues were $4.13 billion, exceeding the $3.52 billion estimate, with a 1.5% year-over-year increase [4] - Commercial premium and service revenues reached $10.15 billion, significantly above the $9.04 billion estimate, representing a 30.9% year-over-year increase [4] - Medicare premium and service revenues were $8.76 billion, exceeding the $8.54 billion estimate, with a 47.6% year-over-year increase [4] - Medicaid premium and service revenues totaled $22.30 billion, above the $21.45 billion estimate, reflecting a 3.9% year-over-year increase [4] - Other premium and service revenues were $1.28 billion, exceeding the $1.22 billion estimate, with a 7.6% year-over-year increase [4] Stock Performance - Centene's shares returned +2.2% over the past month, contrasting with the Zacks S&P 500 composite's -4.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Centene (CNC) came out with quarterly earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.36 per share. This compares to earnings of $2.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.88%. A quarter ago, it was expected that this healthcare company would post earnings of $0.49 per share when it actually produced earnings of $0.80, delivering a surprise of 63.27%.Over the last four quarters, the compan ...

-- Diluted EPS of $2.63; Adjusted Diluted EPS of $2.90 -- First quarter 2025 adjusted diluted EPS of $2.90, up 28% from $2.26 in the first quarter of 2024. 17% year-over-year premium and service revenue growth. Membership increases of 29% in Marketplace and 22% in Medicare PDP, compared to the first quarter of 2024. Increased 2025 premium and service revenues guidance by $6.0 billion driven by outperformance in Marketplace enrollment and Medicare member retention.ST. LOUIS, April 25, 2025 /PRNewswire/ -- Ce ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ ____________________________________________ Commission file number: 001-31826 ____________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ____________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ...

Core Insights - A collaboration between Health Net, Dignity Health, and Vivant Health has significantly improved care coordination for Medi-Cal members in Sacramento County, reducing unnecessary hospital days and increasing follow-up appointments [1][2][3] Group 1: Partnership Impact - The initiative has avoided over 400 unnecessary inpatient days in hospitals, showcasing the effectiveness of the collaborative approach [6] - There has been a 20-percentage point increase in the percentage of patients who had a primary care provider or specialist follow-up appointment after discharge, rising from 76% to 96% [6] - The partnership emphasizes tailored care for patients, enhancing the overall patient experience and setting new healthcare standards [3][4] Group 2: Care Model and Social Determinants - The collaboration integrates new care models aligned with California's CalAIM program, addressing individual social needs such as housing and care navigation [3][4] - A multidisciplinary team, including physicians, nurses, case managers, and social workers, focuses on social determinants of health, significantly improving patient outcomes [4] Group 3: Organizational Background - Health Net, a Centene Corporation company, serves over three million members in California and offers a range of health plans and services [5] - Dignity Health operates a multi-state nonprofit network with over 10,000 physicians and 60,000 employees, dedicated to providing affordable patient-centered care [7] - Vivant Health has been a leader in healthcare innovation for over 30 years, serving over 300,000 patients in California and promoting health equity [8]