Shares of Centene (NYSE:CNC) surged 5.9% after reporting second-quarter results that missed earnings estimates but beat sales expectations. The company posted its first quarterly earnings miss in four years, citing worse-than-expected cost trends in its ACA Marketplace business. Despite the profitability issues, total revenues for the quarter were strong at $48.7 billion. The stock initially dropped sharply but rallied during the earnings call, suggesting investor confidence in management’s plan to address cost issues. Centene’s shares are volatile, with today’s move indicating the market sees the news as significant but not fundamentally changing its perception of the business.

Centene is down 53.3% since the beginning of the year, trading 64.7% below its 52-week high. Investors who bought $1,000 worth of Centene shares 5 years ago would now have an investment worth $420.47. The stock has experienced multiple significant moves over the past year, with the latest being a 3.9% drop due to negative sector developments. Weakness in managed care providers and broader healthcare market concerns also contributed to downward pressure on healthcare equities.

Read more at StockStory Media: Why Centene (CNC) Stock Is Trading Up Today