Centene Corporation (CNC) Cuts Outlook After $1.8B ACA Revenue Hit

We recently compiled a list of 11 Best Undervalued Stocks to Invest in Now. Centene Corporation tops our list for being one of the most undervalued stocks.

Centene Corporation (NYSE:CNC) tops the list for being one of the cheap stocks to buy. It is a major U.S. managed care organization, serving over 1 in 15 Americans through government programs like Medicaid, Medicare, and ACA exchanges, with a focus on underinsured populations. In July 2025, the company withdrew its 2025 earnings guidance after uncovering challenges in the ACA Marketplace. New actuarial data from 22 of its 29 states showed slower-than-expected membership growth and higher morbidity, meaning enrollees are sicker and costlier than anticipated. As a result, the business revised its risk adjustment revenue down by $1.8 billion, which could impact earnings by $2.75 per share.

In response, Centene Corporation (NYSE:CNC) is re-evaluating its 2026 ACA pricing to reflect rising claims and morbidity trends, particularly in states with the largest member base. The company is also emphasizing its operational improvements, streamlining its business, divesting non-core assets, and strengthening its Medicaid and Medicare services.

This development echoes a broader industry trend, as competitors face similar volatility in the ACA exchanges. With enhanced federal subsidies set to expire in 2026, it will be a pivotal year, making pricing corrections and policy adaptations crucial. Centene Corporation (NYSE:CNC) remains focused on core government-backed offerings, investing in Medicare quality and expanding behavioral health, aiming for resilience amid uncertainty.

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