Centene (CNC) lost 8.69% yesterday after hosting an investor conference.
Executives said that Medicaid membership will fall more than expected this year.
Centene is forecasting membership will fall to around 13 million, compared to a previous estimate of 13.6 million. The firm maintained its 2024 EPS outlook of over $6.80. Centene’s peers, Elevance (ELV) and Molina Healthcare (MOH) fell along with CNC stock.
In the retail sector, Dollar Tree (DLTR) lost 22.16% yesterday. The firm is forecasting FY 2024 comparable net sales growth in the low single-digit percentage. Neither its Dollar Tree nor Family Dollar segments will perform well.
Dollar Tree cannot drive gross profit higher until its multi-price model resonates with customers. On the conference call, the firm blamed a challenging macro environment. It cited weak customer demand, especially for discretionary items.
In the cybersecurity segment of the technology sector, Zscaler (ZS) lost nearly 19% on Wednesday. Despite strong revenue growth (+30.3% Y/Y), markets expected a stronger outlook.
ZS stock has upside potential from here. It achieved a milestone of $1 billion in quarterly bookings. Customer demand for the Zero Trust Exchange platform continued. It now has around 8,700 customers, securing 47 million users on its platform.
Zscaler’s architecture creates a natural moat. It is a highly resilient cloud that is growing. Customers trust the platform, which will increase its recurring revenue.
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