We recently compiled a list of the 10 Firms Fall Amid Disappointing Earnings Performance. In this article, we are going to take a look at where Centene Corporation (NYSE:CNC) stands against the other stocks.

Wall Street’s main indices all finished in the green territory on Tuesday, buoyed by news that the US is set to temporarily delay taxes levied on select goods from Canada and Mexico to make way for a potential negotiation.

The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.

Meanwhile, 10 companies bucked an overall positive market sentiment, leading declines mostly due to disappointing earnings performance in the past quarter. This article details the reasons behind their poor performance.

To come up with Tuesday’s biggest losers, we only considered the companies with $2 billion in market capitalization and $5 million in daily trading volume.

A doctor holding a clipboard in a hospital ward, discussing patient treatment plan with the nurses.

Centene Corporation (NYSE:CNC)

Healthcare company Centene Corporation (NYSE:CNC) dropped its share prices by 5.45 percent on Tuesday to end at $61.29 per share as investor sentiment was dampened by higher costs tied to its Medicaid plans, overshadowing better-than-expected earnings performance during the fourth quarter of 2024.

According to reports, as states redetermined the eligibility for Medicaid plans following the pandemic-era federal policy, healthier individuals were dropped from the list, leaving those who require more medical services which in turn added to insurers’ costs. Centene’s medical loss ratio settled at 89.6 percent during the period.

For 2025, Centene maintained its adjusted earnings per share (EPS) forecast of $7.25, but increased its annual premium and service revenue range to between $158 billion to $160 billion.

Overall CNC ranks 9th on our list of Tuesday's biggest losers. While we acknowledge the potential of CNC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CNC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

 

Disclosure: None. This article is originally published at Insider Monkey.