Shares of managed care provider Centene Corp. (NYSE: CNC) dropped over 40% on Wednesday, marking the worst single-day performance in the company's history.
Shares of healthcare insurance company Molina Healthcare (NYSE:MOH)
fell 20.8% in the afternoon session after a sector-wide sell-off as competitor Centene pulled its full-year financial guidance.
Wondering which stocks are making significant price gaps? Explore the S&P500 index on Wednesday to find the gap up and gap down stocks in today's session.
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability.
But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
The draft Senate bill introduces stricter work requirements and funding curbs for Medicaid, while shelving proposed Medicare cuts that could have impacted major insurers.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Thursday's session is showcasing interesting market movements in the S&P500 index, with notable gap up and gap down stocks. Stay updated with the gapping S&P500 stocks in today's session.
Companies with more cash than debt often have stronger financial flexibility, making them attractive in uncertain markets.
Without interest payments being less of a worry, these businesses can invest more in growth, innovation, or buybacks and dividends.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
US healthcare stocks came under pressure after CMS said it would expand Medicare Advantage audits and partner with the HHS Inspector General to recover past overpayments.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
