Should You Hold Centene (CNC)?

1 day ago 2

Soumya Eswaran

Wed, December 10, 2025 astatine 7:30 AM CST 3 min read

Hotchkis & Wiley, an concern absorption company, released its “Hotchkis & Wiley Mid-Cap Value Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the 3rd 4th of 2025, equity markets posted beardown gains with the S&P 500 Index, Nasdaq Composite, Dow Jones Industrial Average, and Russell 2000 Index hitting all-time highs. Enthusiasm implicit artificial quality (AI), a long-awaited Federal Reserve complaint cut, and stronger-than-expected firm net supported the capitalist sentiments successful the quarter. The money outperformed the Russell Midcap Value Index successful the 3rd quarter, gaining 7.74% vs 6.18% for the index. Please reappraisal the fund’s apical 5 holdings to summation penetration into their cardinal selections for 2025.

In its third-quarter 2025 capitalist letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks specified arsenic Centene Corporation (NYSE:CNC). Centene Corporation (NYSE:CNC) is simply a healthcare endeavor that offers services to under-insured and uninsured families and commercialized organizations. The one-month instrumentality of Centene Corporation (NYSE:CNC) was 5.19%, and its shares mislaid 33.08% of their worth implicit the past 52 weeks. On December 09, 2025, Centene Corporation (NYSE:CNC) banal closed astatine $38.08 per share, with a marketplace capitalization of $18.717 billion.

Hotchkis & Wiley Mid-Cap Value Fund stated the pursuing regarding Centene Corporation (NYSE:CNC) successful its 3rd 4th 2025 capitalist letter:

"Centene Corporation (NYSE:CNC) is simply a managed attraction enactment focused connected the managed Medicaid market, with ~28 cardinal at-risk wellness security enrollees. CNC shares fell during the 4th pursuing its astir caller quarterly net study that was worse than expected. At ~4.8x mean earnings, we judge CNC is charismatic arsenic the wide marketplace person successful a concern successful which standard is simply a important competitory advantage. The Medicaid marketplace should turn faster than the system arsenic a whole: CMS forecasts Medicaid spending to turn 6% per twelvemonth 2020-2027, driven by spending per subordinate growth. Centene tin turn with minimal requirements for invested capital."

Centene (CNC) Falls 11.1% connected Investor Caution Ahead of Q2

Centene Corporation (NYSE:CNC) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge money portfolios held Centene Corporation (NYSE:CNC) astatine the extremity of the 3rd quarter, which was 59 successful the erstwhile quarter. While we admit the imaginable of Centene Corporation (NYSE:CNC) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.