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2 Non-AI Giants to Buy on Solid Guidance and Lucrative Valuation
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Key Takeaways
Centene raised 2026 revenue and adjusted EPS guidance, with EPS now expected above $4.80.
Archer-Daniels-Midland lifted 2026 adjusted EPS guidance to approximately $5.15-$5.60 per share.
Both stocks have gained more than 50% year to date while trading at attractive valuations.
The astonishing rally of the artificial intelligence (AI) trade has been showing no signs of abatement even after more than three and a half years. In 2026, the AI trade maintained its northward journey albeit at a slow pace.
This year, several non-AI stocks are flourishing along with AI-powered stocks. We have selected two such stocks with a top Zacks Rank that are currently trading at a lucrative valuation. Investment in these stocks should be fruitful for the rest of 2026.
These stocks are: Centene Corp. (CNC - Free Report) and Archer-Daniels-Midland Co. (ADM - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. These stocks have flourished year to date with more than 50% returns. Yet, their current Zacks top rank indicates significant upside for the rest of 2026.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Centene Corp.
Centene has established itself as a national leader in healthcare services. It is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs, while serving underinsured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.
Strong Guidance
Centene expects premium and service revenues within the band of $173-$177 billion for 2026, up from the previous guidance range of $171-$175 billion. The midpoint of which indicates growth of 0.2% from the 2025 reported figure.
Revenues are estimated between $193.5 billion and $197.5 billion, up from the previously projected band of $187.5 billion-$191.5 billion, the midpoint of which implies a 0.4% increase from the 2025 figure.
Adjusted EPS is expected to be greater than $4.80, up from the prior guidance of greater than $3.40, which now indicates a surge of more than 130.8% from the 2025 figure. GAAP EPS is now forecasted to remain greater than $3.11.
Health benefits ratio is estimated to be in the band of 90.5-91.3% for 2026, while the adjusted SG&A expense ratio is now anticipated to be 6.9-7.5%. The adjusted effective tax rate is expected to be in the range of 25.5-26.5%. Shares outstanding are projected to be between 497 million and 500 million.
Attractive Valuations
The stock price has jumped 68.7% year to date. Despite this, Centene currently has a forward P/E of 13.58X for the current financial year, well below 22.23X of the industry and 18.03X of the S&P 500. CNC currently has a forward P/S of 0.16X, below 0.30X of the industry and 3.01X of the S&P 500. It currently has a forward P/B of 1.45X compared with 2.55X of the industry and 3.59X of the S&P 500.
Solid Estimate Revisions
Centene has an expected revenue and earnings growth rate of 0.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 40.9% over the last 60 days.
CNC has an expected revenue and earnings growth rate of -1.9% and 9.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.6% over the last 30 days.
Image Source: Zacks Investment Research
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach. ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients. Strong Guidance
Archer-Daniels-Midland raised its 2026 adjusted earnings guidance to approximately $5.15-$5.60 per share from the previous range of $4.15-$4.70. The revised outlook assumes year-over-year improvement in crushing and ethanol, supported by disciplined execution and a constructive margin environment.
Management tied the stronger outlook primarily to finalized renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics and higher energy prices. The company continues to project 2026 capital expenditures of $1.3-$1.5 billion while monitoring macroeconomic, geopolitical, policy and trade conditions.
Attractive Valuation
The stock price has surged 50.4% year to date. Despite this, the stock has a forward P/E of 16.60X compared with the industry’s P/E of 13.26X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.51X compared with the industry’s P/S of 0.84X and the S&P 500’s P/S of 3.09X. ADM has a P/B of 1.77X compared with the industry’s P/B of 0.89X and the S&P 500’s P/B of 3.71X.
Solid Estimate Revisions
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
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2 Non-AI Giants to Buy on Solid Guidance and Lucrative Valuation
Key Takeaways
The astonishing rally of the artificial intelligence (AI) trade has been showing no signs of abatement even after more than three and a half years. In 2026, the AI trade maintained its northward journey albeit at a slow pace.
This year, several non-AI stocks are flourishing along with AI-powered stocks. We have selected two such stocks with a top Zacks Rank that are currently trading at a lucrative valuation. Investment in these stocks should be fruitful for the rest of 2026.
These stocks are: Centene Corp. (CNC - Free Report) and Archer-Daniels-Midland Co. (ADM - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. These stocks have flourished year to date with more than 50% returns. Yet, their current Zacks top rank indicates significant upside for the rest of 2026.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Centene Corp.
Centene has established itself as a national leader in healthcare services. It is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs, while serving underinsured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.
Strong Guidance
Centene expects premium and service revenues within the band of $173-$177 billion for 2026, up from the previous guidance range of $171-$175 billion. The midpoint of which indicates growth of 0.2% from the 2025 reported figure.
Revenues are estimated between $193.5 billion and $197.5 billion, up from the previously projected band of $187.5 billion-$191.5 billion, the midpoint of which implies a 0.4% increase from the 2025 figure.
Adjusted EPS is expected to be greater than $4.80, up from the prior guidance of greater than $3.40, which now indicates a surge of more than 130.8% from the 2025 figure. GAAP EPS is now forecasted to remain greater than $3.11.
Health benefits ratio is estimated to be in the band of 90.5-91.3% for 2026, while the adjusted SG&A expense ratio is now anticipated to be 6.9-7.5%. The adjusted effective tax rate is expected to be in the range of 25.5-26.5%. Shares outstanding are projected to be between 497 million and 500 million.
Attractive Valuations
The stock price has jumped 68.7% year to date. Despite this, Centene currently has a forward P/E of 13.58X for the current financial year, well below 22.23X of the industry and 18.03X of the S&P 500. CNC currently has a forward P/S of 0.16X, below 0.30X of the industry and 3.01X of the S&P 500. It currently has a forward P/B of 1.45X compared with 2.55X of the industry and 3.59X of the S&P 500.
Solid Estimate Revisions
Centene has an expected revenue and earnings growth rate of 0.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 40.9% over the last 60 days.
CNC has an expected revenue and earnings growth rate of -1.9% and 9.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.6% over the last 30 days.
Image Source: Zacks Investment Research
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach. ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients.
Strong Guidance
Archer-Daniels-Midland raised its 2026 adjusted earnings guidance to approximately $5.15-$5.60 per share from the previous range of $4.15-$4.70. The revised outlook assumes year-over-year improvement in crushing and ethanol, supported by disciplined execution and a constructive margin environment.
Management tied the stronger outlook primarily to finalized renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics and higher energy prices. The company continues to project 2026 capital expenditures of $1.3-$1.5 billion while monitoring macroeconomic, geopolitical, policy and trade conditions.
Attractive Valuation
The stock price has surged 50.4% year to date. Despite this, the stock has a forward P/E of 16.60X compared with the industry’s P/E of 13.26X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.51X compared with the industry’s P/S of 0.84X and the S&P 500’s P/S of 3.09X. ADM has a P/B of 1.77X compared with the industry’s P/B of 0.89X and the S&P 500’s P/B of 3.71X.
Solid Estimate Revisions
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
Image Source: Zacks Investment Research