1. Centene's stock plummeted 40% after withdrawing 2025 guidance. 2. BBBA passed, cutting $1 trillion from Medicaid, crucial for Centene's revenue. 3. S&P Global may downgrade Centene's rating to junk status. 4. Analysts predicts EPS could drop significantly, affecting investor sentiment. 5. 15 analysts believe Centene is under-valued with 91% potential upside.
The significant Medicaid cuts and potential credit downgrades indicate severe financial strain on Centene, reminiscent of past stock plunges during healthcare reforms.
The article discusses crucial legislative changes directly impacting Centene's revenue stream and cost structure, making it highly relevant for investors.
The full effects of BBBA and potential credit downgrade will linger and affect Centene’s performance and investor sentiment over time, akin to previous healthcare legislation impacts.