Centene Corporation (NYSE:CNC) is one of the most undervalued stocks to buy and hold for 2 years.
On April 28, Centene Corporation reported strong Q1 2026 financial results, with adjusted diluted EPS of $3.37, outperforming internal expectations by ~$0.50
Driven by this solid start, the company has increased its full-year 2026 adjusted diluted EPS guidance to greater than $3.40. During the quarter, Centene also successfully reduced its debt by $1.0 billion. Operational performance remained robust across its primary business lines.
The Medicaid segment achieved an 87.3% health benefits ratio/HBR, aided by effective medical cost management and moderate flu trends, while the Medicare segment saw outperformance in both Medicare Advantage and Prescription Drug Plans/PDP. Although the Commercial segment’s HBR of 75.3% was slightly above expectations due to higher-acuity Marketplace members, total premium and service revenues grew 5% year-over-year to $44.7 billion. Africa Studio/ Centene continues to balance its financial growth with significant community engagement, including new initiatives for affordable housing, diabetes-related nutritional support, and provider accessibility for patients with disabilities.