Xplr Infrastructure LP (XIFR) and Centene Corp (CNC) lead the Bull Strangle Watch List for the Week

Centene (CNC) shares rose 5.2% as investors digested late-July results showing improved profitability and cost control. The company reported Q2 2026 adjusted diluted EPS of $2.51 on $44.4B revenue, with the health benefits ratio improving to 89.6%. Centene raised its 2026 adjusted EPS outlook to over $4.80 from over $3.40, citing better Medicaid and Marketplace margins.

CMS said Medicare Advantage payments to private insurers will rise 2.48% next year, implying about $13 billion in additional payments, and 4.98% after risk-score trends. UNH, HUM, CNC and ELV shares rose 5% to 11% in extended trading. CVS and MOH also gained, after a January proposal for a near-flat increase.

Centene (CNC) is the focus. After FY2026 Q2 results on July 28, shares fell 5.1% as membership declined despite revenue rising 9.9% to $53.6B and adjusted diluted EPS reaching $2.51. Centene raised FY2026 revenue guidance to $193.5B-$197.5B and adjusted EPS to over $4.80. Analysts expect 2026 adjusted EPS of $4.89; Bernstein lifted its price target to $79.

Centene (CNC) reported Q2 results with revenue of $53.58B versus $47.39B expected and adjusted EPS of $2.51 versus $1.08. Management raised full-year revenue guidance to $195.5B and adjusted EPS to $4.80. CEO Sarah London said Medicaid membership declines were driven by state eligibility tightening and regulatory preparations.

More and more uninsured patients are showing up in hospital emergency rooms and clinics, having lost their coverage under the Affordable Care Act. Executives running some of the biggest hospital systems, including large for-profit chains spanning many states, expressed concern over the unexpectedly sharp rise in uninsured patients and the costs associated with treating them.

Strategic Performance and Operational Context Management raised full-year 2026 adjusted EPS guidance to greater than $4.80, citing underlying business strength and a more fully informed view of Marketplace risk adjustment positioning. Marketplace results outperformed expectations following a year of disciplined repricing and data analysis that confirmed the relative acuity of the population.