Top Health Care Stocks Based on Benjamin Graham's Value Investor Model

Regeneron Pharmaceuticals (REGN) and Centene Corp (CNC) are top-rated health care stocks according to Validea's Value Investor model based on Benjamin Graham's deep value methodology. REGN has a rating of 71% due to low P/B and P/E ratios, low debt, and solid long-term earnings growth. CNC also has a rating of 71% with low debt, solid long-term earnings growth, and a focus on under-insured and uninsured individuals. Both stocks meet some of the strategy's criteria but fail others, such as high price/book ratios.

Title: Validea's Top-Rated Health Care Stocks: Regeneron Pharmaceuticals and Centene Corp

Regeneron Pharmaceuticals (REGN) and Centene Corp (CNC) have been recognized as top-rated health care stocks by Validea's Value Investor model, which adheres to Benjamin Graham's deep value methodology. Both stocks have received a rating of 71%, indicating some interest according to the strategy's criteria.

# Regeneron Pharmaceuticals (REGN)

Regeneron Pharmaceuticals, Inc., a fully integrated biotechnology company, has a strong presence in the Biotechnology & Drugs industry. The company invents, develops, manufactures, and commercializes medicines for people with serious diseases, including eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases, and rare diseases. Its proprietary technologies, such as VelociSuite, accelerate drug development by producing optimized fully human antibodies and new classes of bispecific antibodies.

The stock meets several criteria of Validea's strategy, including a pass on the sector, sales, current ratio, and long-term earnings growth. However, it fails the price/book ratio test [1]. The company's recent Phase 3 success with cemdisiran for generalized myasthenia gravis highlights its ability to progress promising therapies through late-stage development [2]. Despite this positive news, the stock's high price/book ratio remains a concern.

# Centene Corp (CNC)

Centene Corporation, a healthcare 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. The company's Medicaid segment covers various programs, including Temporary Assistance for Needy Families (TANF), Medicaid Expansion programs, and Children's Health Insurance Program (CHIP), among others.

Centene Corp meets several criteria of Validea's strategy, including a pass on the sector, sales, and long-term earnings growth. However, it fails the current ratio and long-term debt in relation to net current assets tests [1]. The company's focus on under-insured and uninsured individuals positions it well for growth, but its financial ratios suggest room for improvement.

Conclusion

Both Regeneron Pharmaceuticals and Centene Corp exhibit strong fundamentals that align with Benjamin Graham's deep value methodology. However, they also have areas of concern, such as high price/book ratios for REGN and weak current ratios and long-term debt levels for CNC. Investors should closely monitor these stocks' performance and address the identified weaknesses to make informed investment decisions.

References

[1] https://www.nasdaq.com/articles/valideas-top-health-care-stocks-based-benjamin-graham-8-27-2025

[2] https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-regn/regeneron-pharmaceuticals/news/cemdisirans-phase-3-success-could-be-a-game-changer-for-rege