BofA Identifies 20 Most Favored Stocks by Hedge Funds

Written by Emily J. Thompson, Senior Investment Analyst

CNC-3.22%

INCY+0.92%

IVZ+0.17%

Source: seekingalpha

Updated: 1h ago

0mins

Source: seekingalpha

Hedge Fund Favorites: BofA has identified 20 stocks favored by hedge funds, with Incyte Corporation (INCY) leading at a net relative weight of 32.26%, indicating strong appeal in the biotech sector.
Industry Distribution: The selected stocks span various sectors, including healthcare, technology, and consumer goods, with Centene Corporation (CNC) and Invesco Ltd. (IVZ) following at 19.37% and 17.94%, reflecting hedge funds' emphasis on diversified portfolios.
Market Trends: Among these favored stocks, VeriSign, Inc. (VRSN) and Mohawk Industries, Inc. (MHK) hold weights of 15.23% and 14.94%, respectively, indicating ongoing market interest in digital security and building materials.
Investor Confidence: Match Group, Inc. (MTCH) and PG&E Corporation (PCG) are included with weights of 13.52% and 12.63%, showcasing investor confidence in social media and energy sectors, which may influence future market dynamics.

CNC

$45.75+Infinity%1D

Analyst Views on CNC

Wall Street analysts forecast CNC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNC is 39.23 USD with a low forecast of 32.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Analyst Rating

4 Buy

9 Hold

2 Sell

Hold

Current: 47.270

Low

32.00

Averages

39.23

High

45.00

Current: 47.270

Low

32.00

Averages

39.23

High

45.00

Mizuho

Neutral

maintain

$40 -> $47

Al Analysis

2026-01-09

Reason

Mizuho

Price Target

$40 -> $47

Al Analysis

2026-01-09

maintain

Neutral

Reason

Mizuho raised the firm's price target on Centene to $47 from $40 and keeps a Neutral rating on the shares. The firm updated targets in the healthcare facilities and managed care group as part of a Q4 preview. Mizuho's physician survey indicated healthcare utilization growth trends decelerated sequentially despite easier year-over-year comps, which could indicate trend is peaking, the analyst tells investors in a research note.

Wells Fargo

Equal Weight

maintain

$35 -> $43

2026-01-07

Reason

Wells Fargo

Price Target

$35 -> $43

2026-01-07

maintain

Equal Weight

Reason

Wells Fargo raised the firm's price target on Centene to $43 from $35 and keeps an Equal Weight rating on the shares. For managed care organizations, the firm is most constructive on Medicare Advantage with uncertainty high for Medicaid/Exchanges. Wells sees a more difficult backdrop for hospitals in 2026 as post-COVID tailwinds wane and legislative risks near. Distributor debate remains revisions vs. multiples.

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Bernstein

Lance Wilkes

Outperform

maintain

$45 -> $59

2026-01-06

Reason

Bernstein

Lance Wilkes

Price Target

$45 -> $59

2026-01-06

maintain

Outperform

Reason

Bernstein analyst Lance Wilkes raised the firm's price target on Centene to $59 from $45 and keeps an Outperform rating on the shares. The firm sees a sector turnaround in the government managed care organization sector beginning in 2026, but expects to see bumps in the recovery. Bernstein believes all MCO sectors present attractive entry points, with Medicare Advantage likely to see the nearest term earnings improvements and Medicaid representing the most attractive valuations.

Truist

Buy

downgrade

$47 -> $45

2026-01-05

Reason

Truist

Price Target

$47 -> $45

2026-01-05

downgrade

Buy

Reason

Truist lowered the firm's price target on Centene to $45 from $47 and keeps a Buy rating on the shares. While there remains uncertainty around Enhanced Advance Premium Tax Credits, expectations around an extension resolution are low, and the firm's estimates assume meaningful membership contraction in Marketplace in 2026 across its coverage universe, the analyst tells investors in a research note. Truist sees an attractive Medicare margin recovery opportunity in both Individual and Group given what a conservative utilization assumptions dialed into pricing following several years of strong trend, the attractive MA rate update, and the companies' focus on margin over growth aided by targeted initiatives including benefit adjustments, pricing and footprint rationalization.

About CNC

Centene Corporation is a healthcare company. The Company provides fully integrated services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Its segments include Medicaid, Medicare, Commercial and Other. Specifically, the Medicaid segment includes the Temporary Assistance for Needy Families (TANF) program, Medicaid Expansion programs, the Aged, Blind or Disabled (ABD) program, the Children's Health Insurance Program (CHIP), Long-Term Services and Supports (LTSS), Foster Care, Medicare-Medicaid Plans (MMP), which cover beneficiaries who are dually eligible for Medicaid and Medicare and other state-based programs. The Medicare segment includes Medicare Advantage, Medicare Supplement, Dual Eligible Special Needs Plans and Medicare Prescription Drug Plans. The Commercial segment includes the Health Insurance Marketplace product along with individual, small group, and large group commercial health insurance products.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.