Centene shares, at $80, are up 35% for the year to date.
Concerns about the launch of the Affordable Care Act, aka Obamacare, sent these stocks into a tailspin at first, but most of these stocks have since regained ground over the last few months as investors realize the growth potential.
Data from Best Stocks Now App Centene provides programs and related services to address the needs of the under-insured and uninsured individuals. It offers Medicaid and Medicaid-related coverage to individuals through government subsidized programs and operates in 21 states. As a result of the Affordable Care Act, an additional six million Americans have enrolled in Medicaid and related health programs for the poor through the end of April. More people are now eligible for state Medicaid programs and many of these states are expanding their programs and contracting with private health insurance companies like Molina (MOH), Health Net (HNT) and Centene. Medicaid is now a growth story and these companies are the beneficiaries.
Earnings Results On Tuesday, Centene reported strong second-quarter earnings results of 95 cents vs. the consensus of 72 cents. Revenue of $3.74 billion also beat the consensus estimate of $3.65 billion. The company guided up this year's earnings to a range of $3.70-$3.90 vs. prior guidance of $3.60-$3.90 and the consensus of $3.73. Read More: Gilead Sovaldi $3.5 Billion: The Most Important Number in Biotech Earnings Season
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts