Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, commercial organizations, and military families in the United States. The company operates through Medicaid, Medicare, Commercial, and Other segments. The Medicaid segment offers health plan coverage, including medicaid expansion, aged, blind, disabled, children's health insurance program, foster care, medicare-medicaid plans, long-term services and support. This segment also provides healthcare products. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual, small, and large group commercials. It also operates clinical healthcare and pharmacies, as well as offers dental and speech therapy services. In addition, the company engages in the government contracts business under the TRICARE program and other healthcare related government contracts. It provides services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in Saint Louis, Missouri.

Centene looks like a large and profitable insurer with very low valuation multiples, but the fundamental picture is not without caveats. P/S of 0.17, P/FCF of 3.78, and P/B of 1.48 are noticeably below industry medians, suggesting potential undervaluation, especially against revenue of $53.6 billion and positive free cash flow on a multiple basis. At the same time, P/E and a number of profitability metrics appear formally distorted due to zero TTM values for some indicators, so they cannot be relied on as a clean signal of overvaluation. Revenue, net income, and operating income remain positive, and the cash position is strong: cash on hand of $27.1 billion versus total assets of $83.0 billion and equity of $22.6 billion. This supports financial stability and reduces liquidity risk, although a current ratio of 1.15 and especially a quick ratio of 0.00 show that the short-term liquidity cushion does not look comfortable. The debt burden is moderate: debt/equity of 0.71 and long-term debt of $16.0 billion do not look critical for a business of this scale, but they are still above the desired level for a more conservative assessment. The weak point is profitability: gross margin of 7.82% is below the industry median, and net margin and operating margin in TTM are both zero, indicating instability in earnings quality in recent periods. Historically, there has been a pullback in profitability: in 2025, ROE, ROA, and ROI were positive, but in TTM they fell to zero, which weakens confidence in the sustainability of current returns on capital. On the other hand, EPS of 2.51 and forecast EPS of 0.89 remain positive, and the company itself retains its scale and profitability, so it cannot be viewed as a distressed asset. There is no dividend, so the investment case is not based on shareholder income, but rather on a combination of scale, cash flow, and relative cheapness. Overall, the fundamentals support a moderately positive view on valuation, but weak profitability and an ambiguous trend in efficiency limit the rerating potential. For an investor, this is not a strong growth story, but rather a cautious undervaluation of a large business with an acceptable balance sheet and notable operational risks related to margin quality.

Centene Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Медведи в растерянности.

Strong index, slightly down. The bears are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Рынок на стороне медведей.

Strong index, flat. The market is on the bears' side.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Средний индекс, незначительно упал. Приток средств в шорты на высоком уровне.

Medium index, slightly down. Inflow of funds into shorts at a high level.

Centene appears undervalued on multiples and retains scale, but weak margins, zero TTM profitability, and no dividends limit the upside.

The S&P 500 Index ($SPX) (SPY) closed down by -1.11% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.02%. December E-mini S&P futures (ESZ26) fell -1.16%, and December E-mini Nasdaq futures (NQZ26) fell -2.10%.
Stock indexes sold off sharply on Wednesday, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 3.5-week low. Inflation woes dampened market sentiment and sparked stock liquidation on Wednesday after US September consumer prices rose more than expected, reinforcing speculation that the Fed will keep interest rates higher for longer amid sticky price pressures. The chance of a 25 bp Fed rate hike at this month’s FOMC meeting rose to 37% from 22% before the CPI report. Also, the rout in chipmakers continued Wednesday, weighing on the overall market.
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Wednesday’s broader market slump sparked defensive buying of health care and pharmaceutical stocks, limiting losses in the Dow Jones industrials.
US Sep CPI rose +3.7% y/y, stronger than expectations of +3.6% y/y. Sep core CPI rose +2.6% y/y, stronger than expectations of 2.5% y/y.
The Fed Beige Book was hawkish, noting that a majority of the twelve Fed districts in the six weeks through October 5 reported economic growth, and half saw robust or intensifying price pressures.
Stocks and bonds garnered some support Wednesday on comments from Fed Vice Chair Michelle Bowman, who signaled she favors keeping Fed policy steady at this month's FOMC meeting when she said, "We have some time to wait and see how financial conditions and the economy evolve before we decide that we need to take any more action" on interest rates.
US MBA mortgage applications fell -2.7% in the week ended October 9, with the purchase mortgage sub-index down -4.0% and the refinancing mortgage sub-index down -0.4%. The average 30-year fixed-rate mortgage rose +1 bp to a 2.75-year high of 7.50% from 7.49% the prior week.
China's trade news was better than expected, supporting global growth prospects. China's Sep exports rose +36.3% y/y, stronger than expectations of +25.7% y/y and the most in 7 months. Sep imports rose +31.0% y/y, stronger than expectations of +25.0% y/y.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%.
Nov WTI crude oil prices (CLX26) closed up more than +1% on Wednesday as Yemen's Houthi rebels launched multiple drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East.
Markets are discounting a 37% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed up +0.38%. China's Shanghai Composite closed down -0.89%. Japan's Nikkei-225 Stock Average closed down -0.05%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +4.5 ticks on Wednesday. The 10-year T-note yield fell -2.5 bp to 5.183%. T-note prices recovered from early losses on Wednesday and settled higher as a slump in equity markets fueled short-covering in T-notes. Also, dovish comments on Wednesday from Fed Vice Chair Bowman were bullish for T-notes when said she sees no urgent need for the Fed to raise interest rates.
T-notes initially retreated on Wednesday on the stronger-than-expected US Sep CPI report, which boosted the chance of a Fed rate hike later this month to 37% from 22% before the report. Also, Wednesday’s +1% increase in WTI crude oil has raised inflation expectations and is bearish for T-notes. In addition, the Fed Beige Book was negative for T-notes, noting intensifying price pressures in more than half of the Fed’s districts.
European government bond yields moved lower on Wednesday. The 10-year German bund yield fell -0.3 bp to 3.466%. The 10-year UK gilt yield fell -2.3 bp to 5.424%.
The German Sep wholesale price index rose +8.7% y/y from +6.8% y/y in Aug, the strongest pace of increase in nearly 3.5 years.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off Wednesday, weighing on the overall market. The iShares Semiconductor ETF (SOXX) fell to a 3.5-week low and closed down more than -4%. CoreWeave closed down more than -15% to lead losers in the Nasdaq 100, and Lumentum Holdings (LITE) closed down more than -8%. Also, Marvell Technology (MRVL) closed down more than -7%, and ARM Holdings Plc (ARM) closed down more than -6%. In addition, Advanced Micro Devices (AMD) and SanDisk (SNDK) closed down more than -5%, and Lam Research (LRCX), Seagate Technology Holdings Plc (STX), Microchip Technology (MCHP), Intel (INTC), and Western Digital (WDC) closed down more than -4%.
The Magnificent Seven technology stocks fell on Wednesday, weighing on the broader market. Nvidia (NVDA) and Meta Platforms (META) closed down more than -3%, and Tesla (TSLA) closed down more than -2%. Also, Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT) closed down more than -1%. Bucking the trend, Apple (AAPL) closed up +0.50%.
Cybersecurity stocks weakened on Wednesday, weighing on the overall market. Cloudflare (NET) and Okta (OKTA) closed down more than -6%, and Palo Alto Networks (PANW) closed down more than -5%. Also, Crowdstrike Holdings (CRWD) and SentinelOne (S) closed down more than -4%, and Fortinet (FTNT) and Zscaler (ZS) closed down more than -3%.
Cryptocurrency-exposed stocks fell on Wednesday after Bitcoin (^BTCUSD) fell more than -1%. Iren Ltd (IREN) closed down more than -12%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -9%. Also, Galaxy Digital Holdings (GLXY) and Robinhood Markets (HOOD) closed down more than -8%, and Circle Internet Group (CRCL), BitMine Immersion Technologies (BMNR), and Strategy (MSTR) closed down more than -5%. On addition, Coinbase Global (COIN) and Bullish (BLSH) closed down more than -4%.
Health insurance stocks moved higher on Wednesday as a defensive play amid the broader market rout. UnitedHealth Group (UNH) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials. Also, CVS Health Corp (CVS), Cardinal Health (CAH), and United Health Services (UHS) closed up more than +3%, and HCA Healthcare (HCA) and the Cigna Group (CI) closed up more than +2%. In addition, Centene (CNC) and Humana (HUM) closed up more than +1%.
Defensive pharmaceutical stocks rallied on Wednesday amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), Merck & Co (MRK), Pfizer (PFE), and Regeneron Pharmaceuticals (REGN) closed up more than +3%, and Vertex Pharmaceuticals (VRTX) closed up more than +2%.
Dell Technologies (DELL) closed down more than -11% to lead losers in the S&P 500 , Hewlett Packard Enterprise (HPE) closed down more than -8%, and NetApp (NTAP) closed down more than -6% after Barclays downgraded the stocks to equal weight from overweight.
Bank of America (BAC) closed down more than -4% after reporting Q3 equities trading revenue ex-DVA of $2.51 billion, weaker than the consensus of $2.63 billion.
State Street (STT) closed down more than -3% after reporting Q3 revenue of $4.00 billion, weaker than the consensus of $4.04 billion.
Progressive (PGR) closed down more than -3% after reporting Q3 net premiums written of $22.30 billion, below the consensus of $22.50 billion.
Liquidia (LQDA) closed up more than +27% after reaching a global settlement resolving all pending litigation with United Therapeutics.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Sharply Lower on Inflation Woes and Slumping Chipmakers

The S&P 500 Index ($SPX) (SPY) is up by +0.26% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.31%. December E-mini S&P futures (ESZ26) are up +0.20%, and December E-mini Nasdaq futures (NQZ26) are up +0.16%.
Stock indexes are moving higher today, supported by lower crude oil prices. WTI crude oil is down nearly -1% today as Middle East tensions eased after President Trump said the US would not attack Iran before the midterm elections.
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Also, concerns about slowing demand for AI-infrastructure stocks eased today after people familiar with the matter said OpenAI is expecting to reach or exceed $70 billion in annualized revenue by the end of the year, refuting a report from the Financial Times on Thursday that said OpenAI is on track to generate annualized revenue of roughly $50 billion based on its current performance.
Earnings optimism is a bullish factor for stock prices. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins next week when US money center banks report.
Nov WTI crude oil prices (CLX26) are down nearly -1% today after President Trump said the US would not attack Iran ahead of next month’s midterm elections, citing “productive discussions” with Iran. Losses in crude may be limited today as signs point to lower US crude output and threats to refining capacity. Roughly 1.28 million bpd of crude output, or 63% of US Gulf crude production, has been shut in, and Hurricane Isaias is expected to make landfall along the Gulf Coast later today or tomorrow, threatening 500,000 bpd of refining capacity. Also, due to Iranian attacks on shipping in the Strait of Hormuz, the cost to ship oil out of the Middle East is soaring, with freight rates from the Middle East to China jumping to $1.4 million a day, the most on record.
Markets are discounting a 19% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is up +1.18%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.05%. Japan's Nikkei-225 Stock Average closed down -0.02%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -7 ticks today. The 10-year T-note yield is up +3.0 bp to 5.257%. T-notes are under pressure today from stronger stocks, which curbs safe-haven demand for government debt. T-note losses are limited today, with WTI crude oil prices down nearly -1%, easing inflation expectations.
European government bond yields are moving lower today. The 10-year German bund yield is down -2.6 bp to 3.469%. The 10-year UK gilt yield is down -5.2 bp to 5.429%.
Italy's Aug industrial production fell -1.3% m/m, weaker than expectations of no change and the biggest decline in a year.
Markets are discounting a 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Optical-equipment makers are rallying today after Lumentum Holdings said its components are “completely sold out” through 2029 on high demand from tech companies clamoring for faster AI data centers. Applied Optoelectronics (AAOI) is up more than +9%, and Coherent (COHR) is up more than +8%. Also, Lumentum Holdings (LITE) is up more than +6% to lead gainers in the Nasdaq 100, and Fabrinet (FN) is up more than +3%.
Tower companies are gaining today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio in a deal analysts say is a positive catalyst for the sector. Crown Castle (CCI) is up more than +11%, and American Tower (AMT) and SBA Communications (SBAC) are up more than -7%.
Humana (HUM) is up more than +14% to lead gainers in the S&P 500 and health insurance stocks higher after data from the Centers for Medicare and Medicaid Services showed improved ratings for the company’s Medicare Advantage contract, allowing it to earn bonus payments. Also, UnitedHealth Group (UNH) is up more than +3% to lead gainers in the Dow Jones Industrials, and Elevance Health (ELV) and Centene (CNC) are up more than +2%. In addition, Molina Healthcare (MOH), and the Cigna Group (CI) are up more than +1%.
Telecom stocks are retreating today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio, which will increase competition from satellite operators. T-Mobile US (TMUS) is down more than -9% to lead losers in the S&P 500 and Nasdaq 100. Also, AT&T (T) is down more than -7%, and Verizon Communications (VZ) is down more than -6%. In addition, Charter Communications (CHTR) is down more than -3%, and Comcast (CMCSA) is down more than -1%.
Delta Air Lines (DAL) is down more than -3% to lead airline stocks lower after cutting its full-year adjusted EPS forecast to $5.10 to $5.60 from a previous estimate of $6.50 to $7.50, the midpoint below the consensus of $5.44. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), and Alaska Air Group (ALK) are down more than -2%, and Southwest Airlines (LUV) is down more than -1%.
Fastly (FSLY) is up more than +6% after Oppenheimer upgraded the stock to outperform from perform, with a price target of $35.
Cboe Global Markets (CBOE) is up more than +3% after Morgan Stanley double-upgraded the stock to overweight from underweight, with a price target of $358.
Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after cutting component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand. Skyworks Solutions (SWKS), a supplier of Apple, also dropped -6% on the news.
Earnings Reports (10/9/2026)
Delta Air Lines Inc (DAL), Hingham Institution For Savings (HIFS), Nurix Therapeutics Inc (NRIX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Push Higher as Crude Oil Prices Ease

Oscar Health OSCR has returned to profitability after three consecutive quarters of losses, posting operating profits in both the first and second quarters of 2026. Rapid Affordable Care Act (ACA) membership growth, higher premiums, improved medical costs and tighter expense control drove the turnaround.
Membership reached 2.96 million as of June 30, up from 2.03 million a year earlier. Second-quarter revenues climbed 70% to $4.88 billion, while the medical loss ratio improved to 79.2% from 91.1%. A lower selling, general and administrative expense ratio also helped Oscar generate $388.6 million in operating earnings in contrast to a $230.5 million operating loss a year ago.
The question is whether those gains can hold as medical spending rises later in the year and Oscar absorbs the costs of serving a much larger member base. Oscar raised its 2026 operating earnings outlook to $600 million-$800 million and lowered its expected medical loss ratio to 81%-82%. The revenue guidance was retained in the range of $18.7 billion–$19 billion. Meeting those targets would show that the company can turn rapid membership growth into a meaningful full-year profit.
The second half presents a tougher test. Oscar earned $1.09 billion from operations in the first half, so its updated guidance implies a second-half operating loss of roughly $293 million-$493 million. Medical spending and the cost of serving a larger membership base could put pressure on results.
Oscar has shown that growth and profitability can go together. Investors now need to see whether it can preserve underwriting margins through the rest of 2026 and the next enrollment cycle.
What About Peers?
Molina Healthcare MOH is well-positioned to benefit from several long-term trends supporting government-sponsored healthcare. As of June 30, 2026, total membership of Molina Healthcare decreased 14.3% year over year to around 4.9 million. Rising healthcare utilization, an aging U.S. population and a strategic shift toward D-SNPs should support sustained membership growth for Molina Healthcare.
Centene Corporation CNC has shifted its strategy from prioritizing membership growth to improving earnings quality through disciplined pricing and portfolio optimization. Centene continues to benefit from a large and diversified membership base supported by contract wins and expansion in attractive government-sponsored programs. Centene is also shifting toward higher-quality membership, including growing PDP and dual-eligible Medicare exposure.
OSCR’s Price Performance
Shares of Oscar Health have gained 111.5% year to date, outperforming the industry.
OSCR’s Expensive Valuation
The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 4.61, higher than the industry average of 2.71.
Estimate Movement for OSCR
The Zacks Consensus Estimate for OSCR’s third-quarter and fourth-quarter 2026 earnings per share (EPS) witnessed northbound movement in the last 30 days. The consensus estimate for 2026 and 2027 earnings has moved 18.8% and 24% north, respectively, in the past 30 days.
The consensus estimates for OSCR’s 2026 and 2027 revenues and earnings indicate year-over-year decreases.
OSCR stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
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Can Oscar Health Sustain Its Profit Rebound as Medical Costs Rise?

For Immediate Release
Chicago, IL – September 23, 2026 – Stocks in this week’s article are Centene Corp. CNC, BrightSpring Health Services, Inc. BTSG and Delek US Holdings, Inc. DK.
3 Momentum Anomaly Stocks to Buy as Markets Surge on AI Rally
The broader U.S. equity markets rose sharply yesterday as oil prices declined and sovereign bond yields pulled back. AI-related stocks primarily led the rally, with leading blue-chip firms rebounding sharply. This followed a lackluster last week, when spiraling oil prices and political uncertainty forced the Federal Reserve to hike interest rates by a quarter point to tame inflationary pressures. Although crude oil prices have cooled off since then, the Middle East war tensions refused to abate.
The latest escalation over the weekend was triggered by missile and drone attacks by Iran-backed Houthis on Saudi Arabia. This has led to renewed military action between the United States and its allies against Iran, leading to heightened uncertainty in the region, with markets bracing for highly volatile trading sessions in the near future. Amid the vagaries of the market, investors often seek to employ time-tested winning strategies to fetch sustained profits.
One of the most successful game plans to beat the blues is to bet on momentum stocks, like Centene Corp., BrightSpring Health Services, Inc., and Delek US Holdings, Inc., when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, "the trend is your friend." At its core, momentum investing is "buying high and selling higher." It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. Therefore, this strategy is quite tricky to implement, as detecting these trends is not easy. Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from long-term price momentum and a short-term pullback in price.
Here are three of the four stocks that made it through this screen:
Headquartered in Saint Louis, MO, Centene has established itself as a leading player in healthcare services. This well-diversified healthcare company primarily provides services to government-sponsored healthcare programs, while also serving underinsured and uninsured individuals through member-focused services. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
The stock has gained 98.75% over the past year but lost 6.4% over the past week. Centene has a Momentum Score of A.
Headquartered in Louisville, KY, BrightSpring is a national home and community-based healthcare services platform, integrating pharmacy and provider care for medically complex patients across Medicare, Medicaid and commercial payors.
The stock has surged 102.4% over the past year but declined 7.4% over the past week. BrightSpring has a Momentum Score of A.
Brentwood, TN-based Delek is an independent refiner, transporter and marketer of petroleum products. The refining assets consist primarily of refineries operated in Tyler and Big Spring, TX, El Dorado, AR and Krotz Springs, LA, with a combined nameplate crude throughput capacity of 302,000 barrels per day.
The stock has surged 129.8% in the past year but declined 0.1% in the past week. Delek has a Momentum Score of A.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2993572/3-momentum-anomaly-stocks-to-buy-as-markets-surge-on-ai-rally
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Zacks.com featured highlights include Centene, BrightSpring Health Services and Delek US

The broader U.S. equity markets rose sharply yesterday as oil prices declined and sovereign bond yields pulled back. AI-related stocks primarily led the rally, with leading blue-chip firms rebounding sharply. This followed a lackluster last week, when spiraling oil prices and political uncertainty forced the Federal Reserve to hike interest rates by a quarter point to tame inflationary pressures. Although crude oil prices have cooled off since then, the Middle East war tensions refused to abate.
The latest escalation over the weekend was triggered by missile and drone attacks by Iran-backed Houthis on Saudi Arabia. This has led to renewed military action between the United States and its allies against Iran, leading to heightened uncertainty in the region, with markets bracing for highly volatile trading sessions in the near future. Amid the vagaries of the market, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks, like Centene Corporation CNC, BrightSpring Health Services, Inc. BTSG and Delek US Holdings, Inc. DK, when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. Therefore, this strategy is quite tricky to implement, as detecting these trends is not easy. Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from long-term price momentum and a short-term pullback in price.
Screening Parameters for Momentum Anomaly Stocks
Percentage Change in Price (52 Weeks) = Top #50: This selects the top 50 stocks with the best percentage price change over the last 52 weeks. This parameter ensures we get the best stocks that have appreciated steadily over the past year.
Percentage Change in Price (1 Week) = Bottom #10: From the above 50 stocks, we then choose those that are also among the 10 worst performers over a short one-week period. This parameter picks the ones that have witnessed a short-term pullback in price.
Zacks Rank #1: Stocks sporting a Zacks Rank #1 (Strong Buy) have a proven history of outperformance irrespective of the market conditions. You can see the complete list of today’s Zacks #1 Rank stocks here.
Momentum Style Score of B or Better: A top Momentum Style Score knocks out a lot of the screening process, as it takes into account several factors that include volume change and performance relative to its peers. It indicates when the timing is best to grab a stock and take advantage of its momentum with the highest probability of success. Stocks with a Momentum Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), handily outperform other stocks.
Current Price Greater Than $5: The stocks must all be trading at a minimum of $5.
Market Capitalization = Top #3000: We have chosen stocks that are among the top 3000 in terms of market value to ensure the stability of price.
Average 20-Day Volume Greater Than 100,000: A substantial trading volume ensures that these stocks are easily tradable.
Here are three of the four stocks that made it through this screen:
Headquartered in Saint Louis, MO, Centene has established itself as a leading player in healthcare services. This well-diversified healthcare company primarily provides services to government-sponsored healthcare programs, while also serving underinsured and uninsured individuals through member-focused services. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
The stock has gained 98.75% over the past year but lost 6.4% over the past week. Centene has a Momentum Score of A.
Headquartered in Louisville, KY, BrightSpring is a national home and community-based healthcare services platform, integrating pharmacy and provider care for medically complex patients across Medicare, Medicaid and commercial payors.
The stock has surged 102.4% over the past year but declined 7.4% over the past week. BrightSpring has a Momentum Score of A.
Brentwood, TN-based Delek is an independent refiner, transporter and marketer of petroleum products. The refining assets consist primarily of refineries operated in Tyler and Big Spring, TX, El Dorado, AR and Krotz Springs, LA, with a combined nameplate crude throughput capacity of 302,000 barrels per day.
The stock has surged 129.8% in the past year but declined 0.1% in the past week. Delek has a Momentum Score of A.
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3 Momentum Anomaly Stocks to Buy as Markets Surge on AI Rally

Centene Corporation’s CNC balance sheet is becoming an increasingly important part of the investment story. Stronger cash flow is giving the company room to reduce debt while preserving financial flexibility. That matters as the insurer works through payment-timing swings and navigates a shifting healthcare environment.
Centene generated nearly $8 billion from operations in the first half, partly reflecting the timing of Medicaid pass-throughs and working capital movements. More than $3 billion of Medicaid pass-through payments is expected to be paid out in the third quarter. While this should weigh on near-term cash, these payments do not affect key operating metrics such as the Health Benefits Ratio, SG&A expense ratio, or Days Claims Payable.
The company is also using receivables to support its balance-sheet improvement. In March 2026, it monetized a $1 billion participating interest in 2025 Part D risk-sharing receivables, generating $970 million to partially redeem senior notes. This gives Centene another source of liquidity beyond operating cash flow.
The impact is already visible in leverage. CNC repurchased $1.3 billion of senior notes in the first half, pushing its debt-to-capital ratio down to 41.6% from 46.5% as of year-end. With $981 million remaining under its repurchase authorization and no borrowings under its revolving credit facility, the focus now shifts to how effectively Centene uses its cash generation to further improve the balance sheet while funding operations.
How Are Competitors Faring?
Some of CNC’s major competitors in the managed-care space are Molina Healthcare, Inc. MOH and Elevance Health, Inc. ELV.
Molina Healthcare is also focused on strengthening cash generation while managing medical-cost pressure across its businesses. MOH’s operating cash flow improved to $788 million in the first half of 2026 from an outflow of $112 million a year earlier, despite its MCR increasing to 92.2%.
Elevance Health is balancing Medicaid payment timing with continued medical-cost pressures. ELV generated $1.9 billion of operating cash flow in the second quarter and ended June with $2.1 billion of parent-company cash and investments, providing added flexibility to support its balance-sheet and capital needs.
Centene’s Price Performance, Valuation & Estimates
Shares of CNC have gained 58.2% in the year-to-date period compared with the industry’s growth of 16.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 12.48, below the industry average of 15.25. CNC carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, implying 135.1% growth from the year-ago period’s level.
CNC stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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How Centene's Strong Cash Flow Is Reshaping Its Balance Sheet

eHealth, Inc. EHTH recently said small and mid-sized employers are facing a sharp jump in health insurance costs for 2027, pushing many to rethink traditional group coverage. Its survey of more than 500 business owners and managers found that 54% expect premium increases of at least 10%, while more than one in five face hikes of 15% or higher.
Employer Health Costs Are Heading Higher
Last month, Aon plc AON projected that U.S. employer healthcare costs will rise 9.5% in 2027 before employers take steps to rein in expenses. Aon links the increase not only to higher prices but also to greater healthcare utilization and a more expensive mix of services. Marsh & McLennan Companies, Inc. MRSH expects an even steeper 11% increase before cost-control measures, moderating to 8.2% after employers make planned benefit changes.
That would mark the sharpest increase in employer health benefit costs since 2003, even after cost-containment efforts. Marsh also found that 59% of employers plan benefit changes, including higher deductibles, as companies try to contain spending. It attributes the expected increase to several factors, including costly new therapies, higher provider rates, broader use of GLP-1 weight-loss drugs, AI-supported medical billing and out-of-network charges. GLP-1 drugs alone are projected to contribute roughly one percentage point to health benefit cost growth in 2027.
Why CHOICE/ICHRAs Are Gaining Attention
eHealth CEO Derrick Duke said that rising costs are making it harder for employers to use health benefits to attract and retain workers. The company sees growing interest in alternatives such as Custom Health Option and Individual Care Expense (CHOICE) Arrangements, also known as Individual Coverage Health Reimbursement Arrangements (ICHRAs), which can offer employers more cost certainty, flexibility and simpler administration.
The numbers suggest that higher premiums are starting to change how smaller employers think about providing health benefits. Among companies facing rate increases, 80% said the size of the hike surprised them. The bigger concern is that 73% are considering moving away from traditional group coverage in 2027. Another 85% worry they may be unable to afford group coverage within three years. Meanwhile, 58% are already pursuing alternatives, while awareness of CHOICE Arrangements rose to 57% from 46% a year earlier, a meaningful eleven-point increase.
What the Shift Could Mean for eHealth
For eHealth, this trend could expand the market for employer-funded individual coverage. If more small and mid-sized companies move away from fully insured group plans, demand could rise for CHOICE Arrangements and other options that eHealth can help employers and workers evaluate. That could expand lead volumes, policy enrollments and commission opportunities.
The survey also suggests that employers have reasons beyond premiums to consider alternatives: 79% view plan administration as a burden, while 72% report at least one dissatisfaction with current coverage. eHealth currently has a Zacks Rank #3 (Hold).
Health Insurers Position for ICHRA Growth
Meanwhile, health insurers such as Centene Corporation CNC could also benefit as employers move toward individual coverage models. Centene says ICHRA adoption among businesses rose 34% from 2024 to 2025, signaling stronger interest in the model. Through Ambetter Health Solutions, CNC is targeting this opportunity with ICHRA-compatible plans available in 13 states in 2026. Continued adoption could help Centene attract additional members, lift premium revenues and broaden its reach in the employer-linked individual market. Centene currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings outlook also remains favorable.
The Zacks Consensus Estimate for CNC’s 2026 EPS stands at $4.89, implying a 135.1% year-over-year surge, while the 2027 estimate of $5.34 points to another 9.2% increase. Both estimates received nine upward revisions over the past 60 days and no downward revisions. CNC beat earnings estimates in each of the past four quarters, with an average surprise of 151.3%.
Centene Price, Consensus and EPS Surprise
UnitedHealth Group Incorporated UNH is also building its presence in the ICHRA market through a major expansion of UnitedHealthcare’s off-exchange individual plans, which can be paired with employer-funded reimbursements. In 2026, UnitedHealth more than quadrupled its off-exchange offerings and entered 20 additional states. The wider footprint gives employees using ICHRAs a broader set of coverage choices and could help UnitedHealthcare capture additional enrollment if adoption continues to rise. It currently has a Zacks Rank #2 (Buy).
The consensus estimates for UNH’s 2026 and 2027 EPS are $19.82 and $22.54, indicating growth of 21.2% and 13.7%, respectively. Both estimates saw six upward revisions over the past 60 days and no downward movements. UNH topped earnings estimates in each of the past four quarters, delivering an average surprise of 12.1%.
UnitedHealth Price, Consensus and EPS Surprise
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eHealth, Inc. (EHTH) : Free Stock Analysis Report
Marsh (MRSH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Employer Health Costs Surge: What it Means for EHTH, CNC & UNH

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today September 18th:
Audioeye AEYE: This company which engages in creating cloud-based cross-platform/cross-browser screen reader solution for web browsing, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 27.0% over the last 60 days.
Audioeye, Inc. Price and Consensus
Audioeye's has a PEG ratio of 1.79 compared with 19.28 for the industry. The company possesses a Growth Score of A.
Audioeye, Inc. PEG Ratio (TTM)
Audioeye, Inc. peg-ratio-ttm | Audioeye, Inc. Quote
Charles River Associates CRAI: This company which is one of the leading global consulting firms, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.0% over the last 60 days.
Charles River Associates Price and Consensus
Charles River Associates has a PEG ratio of 1.50 compared with 1.86 for the industry. The company possesses a Growth Score of B.
Charles River Associates PEG Ratio (TTM)
ZIM Integrated Shipping Services ZIM: This company which provides container shipping and related services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 592.4% over the last 60 days.
ZIM Integrated Shipping Services Ltd. Price and Consensus
ZIM Integrated Shipping Services Ltd. price-consensus-chart | ZIM Integrated Shipping Services Ltd. Quote
ZIM Integrated Shipping Services' has a PEG ratio of 0.04 compared with 0.38 for the industry. The company possesses a Growth Score of B.
ZIM Integrated Shipping Services Ltd. PEG Ratio (TTM)
ZIM Integrated Shipping Services Ltd. peg-ratio-ttm | ZIM Integrated Shipping Services Ltd. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Centene Corp (Symbol: CNC) has taken over the #301 spot from Willis Towers Watson Public Ltd Co (Symbol: WTW), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Centene Corp (Symbol: CNC), the market cap is now $32.61 billion, versus Willis Towers Watson Public Ltd Co (Symbol: WTW) at $29.57 billion.
Below is a chart of Centene Corp versus Willis Towers Watson Public Ltd Co plotting their respective size rank within the S&P 500 over time (CNC plotted in blue; WTW plotted in green):
Below is a three month price history chart comparing the stock performance of CNC vs. WTW:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full CNC market cap history vs. the full WTW market cap history.
At the closing bell, CNC is up about 1.7%, while WTW is off about 0.6% on the day Thursday.
Further CNC Research:

Centene Moves Up In Market Cap Rank, Passing Willis Towers Watson Public

Centene Corporation CNC is showing tangible signs of a profitability recovery, with second-quarter 2026 results reflecting better medical cost trends and stronger execution. Premium and service revenues increased 4.5% year over year, while adjusted EPS rose to $2.51 from a loss of 16 cents a year ago. CNC reaffirmed its 2026 adjusted EPS guidance floor to above $4.80. Its consolidated health benefits ratio improved to 89.6% from 93% a year ago.
Marketplace profitability has supported the recovery. Centene expects the business to generate a 4.5%-5% pretax margin in 2026, helped by better risk adjustment and moderating medical costs. Medicare is also progressing, with the PDP business expected to deliver a pretax margin above 3% and Medicare Advantage moving closer to breakeven.
Membership remains the main pressure point. Medicaid enrollment ended the second quarter of 2026 at 12.1 million, down 5.5% year over year, while Marketplace membership stood at roughly 3.5 million. Centene expects further attrition as eligibility reviews continue, with full-year Medicaid membership projected to decline 8%-9% from year-end 2025.
Improving Medicaid rates could cushion some of the impact. CNC raised its expected 2026 Medicaid rate increase to about 5%, while medical-cost trends remain in the mid-4% range. Continued progress in behavioral health, payment integrity and affordability initiatives could also support gradual margin recovery.
Centene is simultaneously simplifying its operating model and expanding technology and AI use to reduce costs. These efforts, combined with stronger Marketplace and Medicare profitability, provide a foundation for further recovery, though sustained improvement will depend on managing membership losses.
How Are Competitors Faring?
Some of CNC’s major competitors in the healthcare service provider space are UnitedHealth Group Incorporated UNH and Humana Inc. HUM.
UnitedHealth is navigating similar membership and medical-cost pressures, particularly in Medicare Advantage and Medicaid. Still, its diversified Optum operations and cost-management efforts are supporting recovery. UNH raised its 2026 adjusted EPS outlook to $19.50-$20 following second-quarter results.
Humana is seeing strong Medicare Advantage membership growth while working to improve the profitability of its expanded member base. HUM’s CenterWell is adding another growth driver, with senior primary care patients up 27% through June 2026, supporting broader earnings diversification.
Centene’s Price Performance, Valuation & Estimates
Shares of CNC have surged 60.4% in the year-to-date period compared with the industry’s growth of 17.8%.
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 12.67, below the industry average of 15.44. CNC carries a Value Score of A.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, implying 135.1% growth from the year-ago period.
CNC stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).