Core Insights - Centene Corporation (CNC) is expected to report a loss of $0.21 per share for Q3 2025, with revenues projected at $47.62 billion, reflecting a year-over-year revenue growth of 13.3% despite a significant earnings decline of 113% [1][2][6]. Financial Performance - The earnings estimate for Q3 2025 has remained stable over the past 60 days, indicating a year-over-year plunge in earnings, while revenue projections suggest growth [2][3]. - For the full year 2025, Centene's revenue is estimated at $190.45 billion, representing a 16.8% increase year-over-year, but the EPS is projected to decrease by 76.4% [3][4]. Membership and Revenue Trends - Total commercial memberships are expected to increase by 26.6% year-over-year, with Medicare PDP memberships also showing nearly 17% growth [6][7]. - However, total membership is projected to decline by 2.2% year-over-year, primarily due to decreases in Medicaid and Medicare memberships [8]. - The consensus estimate for service revenues indicates a 7.2% decline from the previous year, while investment and other income is expected to fall by 11.7% [9]. Cost and Expense Outlook - Centene's medical costs are anticipated to remain high, with the health benefits ratio expected to rise to 93%, indicating a reduced portion of premiums available after claims [10]. - Total operating expenses are projected to increase by more than 15% in Q3, which may negatively impact the bottom line [10].

Core Insights - The Mid Cap Value portfolio experienced a gain of 1.70% in Q3 2025, underperforming compared to the Russell Midcap® Value Index, which increased by 6.18% [2] Performance Analysis - The portfolio's performance was primarily affected by stock selection, indicating that specific investment choices did not yield favorable results compared to the benchmark [2]

Core Insights - The article emphasizes the importance of staying updated on stocks within the biotech, pharma, and healthcare sectors, highlighting key trends and catalysts that influence market valuations [1]. Group 1: Industry Overview - The performance of the five largest health insurers in the U.S. by market capitalization is discussed, specifically mentioning UnitedHealth Group Incorporated and CVS Health [1]. - The investing group Haggerston BioHealth provides insights for both novice and experienced biotech investors, including catalysts for investment decisions and buy/sell ratings [1]. Group 2: Analyst Background - Edmund Ingham, a biotech consultant with over five years of experience in the sector, has compiled detailed reports on more than 1,000 companies and leads the Haggerston BioHealth investing group [1].

U.S. healthcare insurance providers Centene Corporation (NYSE:CNC) and Oscar Health Inc. (NYSE:OSCR) stock are trading lower as their peer Molina Healthcare Inc. (NYSE:MOH) reported disappointing annual guidance.The U.S. insurance provider on Wednesday reported third-quarter adjusted earnings of $1.84 per share, compared with $6.01 in the same quarter last year, missing the consensus of $3.90.The consolidated medical care ratio (MCR) for the third quarter of 2025 rose to 92.6%, up from 89.2% a year earlier. ...

The health care sector has taken an enormous pounding in the last few months, which few active investors missed. Medical expense ratios skyrocketed across the board, leading to much lower earnings, despite solid revenue growth in most companies. EPSHi! I'm a passionate investor who has been researching publically traded companies for over 6 years. My primary focus is on identifying great businesses at reasonable prices and holding them for the long term but I also dive into trend following strategies from t ...

The health care sector has taken an enormous pounding in the last few months, which few active investors missed. Medical expense ratios skyrocketed across the board, leading to much lower earnings, despite solid revenue growth in most companies. EPSHi! I'm a passionate investor who has been researching publically traded companies for over 6 years. My primary focus is on identifying great businesses at reasonable prices and holding them for the long term but I also dive into trend following strategies from t ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a pressing concern regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of small cities, indicating a significant strain on global power grids [2] - The company in focus is positioned to capitalize on the rising demand for electricity, which is becoming the most valuable commodity in the digital age [3][8] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, benefiting from the surge in energy demand driven by AI advancements [4][5] - It possesses critical nuclear energy infrastructure assets and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] - The company is debt-free and has a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] Market Positioning - The company has an equity stake in another prominent AI venture, providing investors with indirect exposure to multiple growth opportunities in the AI sector [9] - It is trading at a low valuation of less than 7 times earnings, making it an attractive investment option in the context of AI and energy [10][11] - The company is poised to benefit from the onshoring trend and increased U.S. LNG exports, aligning with the "America First" energy policy [6][7][14] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12] - The overall narrative emphasizes that investing in AI is not just about financial returns but also about participating in a transformative technological revolution [15][19]

Group 1 - Centene Corporation (NYSE: CNC) is currently facing high costs, similar to other health insurance stocks, impacting its financial outlook for the current year and the upcoming third quarter earnings report [1] - The focus of Cash Flow Club is on businesses with strong cash generation, ideally with a wide moat and significant durability, which can lead to rewarding investments when acquired at the right time [1] Group 2 - The article mentions that Jonathan Weber has been active in the stock market and as a freelance analyst for many years, focusing primarily on value and income stocks while occasionally covering growth [2]

Core Viewpoint - Centene Corporation (NYSE: CNC) is initiated with a Strong Buy rating, reflecting a positive outlook on the company's potential value and performance [1] Valuation Methodology - The article discusses various methods sell-side analysts use to determine a company's fair value, highlighting the limitations of traditional approaches like DCF and multiples [1] - A reverse valuation approach is proposed, which starts from the market price and discount rate to reveal the free cash flow assumptions already embedded in the price [1] - The Free Cash Flow to Equity (FCFE) model is utilized to assess what truly belongs to shareholders, focusing on earnings, amortization, and investments while ignoring working capital and debt changes [1] Forecasting Approach - The H-model is applied for forecasts, which incorporates a 10-year two-stage growth fade with terminal growth equal to the risk-free rate (RFR) [1] - All cash flows are discounted using the cost of equity, calculated as RFR multiplied by beta plus a 5% equity risk premium (ERP) [1] - This methodology aims to provide a clear and noise-free picture of the business's true worth [1]

Core Viewpoint - Centene Corporation (NYSE: CNC) is initiated with a Strong Buy rating, reflecting a positive outlook on the company's potential value and performance [1]. Valuation Methodology - The article discusses various methods sell-side analysts use to determine a company's fair value, highlighting the limitations of traditional approaches like DCF and multiples [1]. - A reverse valuation approach is proposed, which starts from the market price and discount rate to uncover the free cash flow assumptions embedded in the price, providing a more realistic assessment of the company's worth [1]. - The Free Cash Flow to Equity (FCFE) model is utilized to calculate what truly belongs to shareholders, focusing on earnings, amortization, and investments while ignoring working capital and debt changes [1]. Forecasting Approach - The H-model is applied for forecasts, which incorporates a 10-year two-stage growth fade, with terminal growth aligned to the risk-free rate, specifically the 10-year government bond yield [1]. - All cash flows are discounted using the cost of equity, calculated as the risk-free rate multiplied by beta plus a 5% equity risk premium (ERP), resulting in a clear picture of the business's intrinsic value [1].