Centene Corp. (CNC) Surged on Earnings Beat and Improved Outlook

3 weeks ago 5

Soumya Eswaran

Tue, August 4, 2026 astatine 11:03 AM CDT 3 min read

Hotchkis & Wiley, an concern absorption company, released its second-quarter 2026 capitalist missive for the "Hotchkis & Wiley Mid-Cap Value Fund." A transcript of the missive tin beryllium downloaded here. Equity markets posted beardown returns successful the 2nd 4th of 2026, with the Russell Midcap Index rising 13.8% and the Russell Midcap Value Index returning 13.4%, contempt concerns astir inflation, a hawkish Federal Reserve, and rising lipid prices owed to the Iran conflict. Narrow marketplace enactment was evident, peculiarly semiconductor stocks and different stocks successful the AI sector, which saw returns exceeding 100%. The Firm favors prime businesses with charismatic valuations, believing that fears regarding AI's interaction are overstated. The Hotchkis & Wiley Mid-Cap Value Fund lagged the Russell Midcap Value Index, achieving a 4.74% instrumentality successful the 2nd quarter, chiefly owed to underperformance successful exertion and vigor sectors, portion banal enactment successful healthcare contributed positively. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted Centene Corporation (NYSE:CNC) arsenic a starring show contributor. Centene Corporation (NYSE:CNC) is simply a US-based healthcare endeavor that offers services to underinsured and uninsured families and commercialized organizations. On August 3, 2026, Centene Corporation (NYSE:CNC) closed astatine $63.76 per share, reflecting a marketplace capitalization of $31.49 billion. Centene Corporation (NYSE:CNC) posted a one-month instrumentality of -3.57%, portion its shares gained 146.27% implicit the past 52 weeks.

Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Centene Corporation (NYSE:CNC) successful its Q2 2026 capitalist letter:

"Centene Corporation (NYSE:CNC) is simply a managed attraction enactment focused connected the Medicaid market, with astir 28 cardinal at-risk enrollees and 1 of the largest Medicaid marketplace stock among publically traded peers. It is simply a capital-light concern good positioned to perchance payment arsenic the U.S. continues shifting healthcare toward government-funded, cost-controlled programs. Centene outperformed sharply this 4th arsenic adjusted EPS bushed statement by 48%, absorption raised full-year guidance, and investors gained assurance that the Medicaid borderline betterment and ACA rank reset were some tracking up of plan."

Truist Lifts Centene (CNC) Target to $49, Maintains Buy Rating After Positive Management Meetings

Centene Corporation (NYSE:CNC) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 72 hedge money portfolios held Centene Corporation (NYSE:CNC) astatine the extremity of the archetypal quarter, compared to 78 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.

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