Jim Cramer gives his take on Centene’s slide

Jim Cramer from CNBC offered to seize the health company Faced And why he thought that the stock fell on Wednesday and told investors to stay away from the sector as a whole.

“Considering this news from Centene, I think that all the managed maintenance industry is currently not investing at the border,” he said. “And unfortunately, things will get worse before it is better for this sector, so I can’t justify your having these stocks anyway, even after you’ve already fell into a dramatic way.”

Centene first provides health changes For government programs like Medicaid and Medicare. Stocks fell unexpectedly retreated Tuesday night full year estimation. The management reduced earnings guidance and brought a corrected diluted earning per share. quarter In April. The company showed data showing lower general market growth in 22 out of 29 states.

Stock fell more than 40% by hitting the lowest level of 52 weeks And the decline triggered the losses throughout the group.

According to Cramer, a large extent in the managed maintenance area has to pay more than expected to cover the health costs of policy holders. He argued that Centene’s results show that there was already some wear in the health change record and that these programs are still less healthy than those who leave.

Cramer can worse Centene, because it will increase premiums to take into account this new economic environment. If fewer people are to be registered in health programs, the premiums rise, the treatment continued except for those who have more expensive serious illnesses. He also said that Centene’s earnings are obliged to get another hit if the market data from the rest of the provinces that the company serves.

President Donald Trump’s “Big Beautiful Invoice” is not good for Centene, Cramer added. The Senate exceeded a version of the bill on Tuesday with its new Medicaid policies, which will significantly reduce Centene’s customer base and leave millions of Americans without health insurance. Cramer, the bill of law to finance Medicaid to the health service providers also limited the fees applied, he said.

Cramer said he had been shot harder than Centene’s peers, because most of his business is in the field of health change. However, the company faces higher costs for Medicaid plans, as well as other problems, including higher costs for health services, which have been an industrial problem for some time.

“At the end of the day, the news from Centene last night meant a very negative development for the company itself, but the last of a long bad news line for health insurance cohort, which is also a really hard time.” He said.

Centene did not respond immediately to the request for comments.