Stock of the Day

January 28, 2021

Molina Healthcare (MOH)

$283.89
-$7.57 (-2.6%)
Market Cap: $16.18B

About Molina Healthcare

Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company served in across 19 states. The company was founded in 1980 and is headquartered in Long Beach, California.

Molina Healthcare Bull Case

Here are some ways that investors could benefit from investing in Molina Healthcare, Inc.:

  • Molina Healthcare, Inc. has a strong return on equity of 28.13%, indicating effective management and profitability in generating returns for shareholders.
  • The company operates in a growing sector, providing managed healthcare services to low-income families and individuals, which is essential in the current economic climate.
  • Recent analyst ratings show a mix of buy and hold recommendations, with an average price target of $355.67, suggesting potential for stock appreciation.
  • Despite missing earnings expectations recently, the company reported an EPS of $5.05, which reflects its ongoing revenue generation capabilities.
  • The stock is currently trading at a price that analysts believe has room for growth, with some price targets as high as $406.00, indicating potential upside for investors.

Molina Healthcare Bear Case

Investors should be bearish about investing in Molina Healthcare, Inc. for these reasons:

  • The company recently missed analysts' consensus EPS estimates by $0.69, which may raise concerns about its short-term financial performance.
  • There is a significant number of hold ratings (seven) compared to buy ratings (five), indicating a lack of strong bullish sentiment among analysts.
  • Recent price target reductions from various analysts, including a drop to $325.00, suggest that market sentiment may be shifting negatively.
  • The net margin of 2.90% indicates that the company has limited profitability relative to its revenue, which could be a concern for investors looking for high-margin businesses.
  • One analyst has issued a sell rating, which could signal potential risks associated with the stock that investors should consider before investing.

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