Core Insights - Centene Corporation (CNC) faces both opportunities and challenges under the One Big Beautiful Bill Act (OBBBA), which aims to simplify and digitize the U.S. healthcare payment system [1][3] - The bill includes approximately $1 trillion in federal Medicaid cuts over the next decade and mandates eligibility verification every six months, potentially increasing administrative costs and affecting ACA plan enrollment [2][8] Group 1: Opportunities and Challenges - The emphasis on billing standardization and digital infrastructure in the OBBBA may benefit Centene, allowing for enhanced claims accuracy and improved cash flow [3][4] - Centene's nationwide presence and experience in navigating complex regulations provide a competitive edge, enabling the company to develop tailored products and expand into private markets [4] Group 2: Financial Performance and Estimates - Centene's shares have lost 57.6% year to date, underperforming the industry [7] - The Zacks Consensus Estimate for CNC's EPS has been revised downward for the second and third quarters of 2025, with a similar trend for full-year estimates [10][11] - Current estimates indicate a year-over-year revenue increase for 2025, but a decline in EPS, while the opposite is expected for 2026 [11] Group 3: Valuation and Market Position - Centene trades at a forward 12-month price-to-earnings ratio of 8.98, below the industry average of 11.96 [9] - The company may face pressure from the $1 trillion in Medicaid cuts and potential increases in costs due to eligibility checks [8]