Jul. 10, 2025 5:08 AM ETCentene Corporation (CNC) StockCNCHawkinvest13.68K FollowersSummaryCentene's stock plunged after withdrawing 2025 guidance due to higher medical costs, but the selloff appears to be a capitulation event.The stock is deeply oversold, trading at just 10x reduced 2025 earnings, with a strong balance sheet and potential for a sharp rebound in 2026-2027.Challenges include Medicaid cuts and higher-risk policyholders, but corrective pricing actions and sector defensiveness in a recession offer upside.I'm buying a small position, averaging in, and may sell puts, viewing this as a long-term opportunity with significant undervaluation after the recent plunge.Aree Sarak/iStock via Getty ImagesCentene Corporation (NYSE:CNC) offers a variety of healthcare insurance products, including Medicare, Medicaid, and more. A few days ago, shares of this company plunged after the company withdrew guidance for 2025, with much of this being driven byThis article was written byHawkinvest13.68K FollowersLong-time stock market investor focused on strategic buying opportunities with dividend and value stocks. This investment strategy has resulted in a near 5 star rating on Tipranks.com and over 9,000 followers on Seeking Alpha. Follow me on Twitter for my latest trading ideas: @Hawkinvest1Analyst’s Disclosure:I/we have a beneficial long position in the shares of CNC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You