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Valued at a market cap of $20.65 billion, Molina Healthcare, Inc. (MOH) exclusively provides managed healthcare services in government-sponsored programs. The California-based company caters to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces.
Shares of this healthcare company have underperformed the broader market over the past 52 weeks. MOH has gained 9.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.1%. In 2024, shares of MOH are down 2.5%, compared to SPX’s 17.2% gain on a YTD basis.
Zooming in further, MOH’s underperformance becomes evident when compared to the iShares U.S. Healthcare Providers ETF’s (IHF) 14.8% gains over the past 52 weeks and 10% return on a YTD basis.
Shares of MOH gained 12.3% following its Q2 earnings release on Jul. 24 due to its adjusted earnings of $5.86 per share, which beat Wall Street estimates of $5.73 per share. The company’s revenue of $9.88 billion also surpassed analysts' estimates of $9.79 billion. The company expects full-year earnings to be $23.50 per share.
For the current fiscal year, ending in December, analysts expect MOH’s EPS to grow 12.6% year over year to $23.50.The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 14 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, six “Holds,” and one “Moderate Sell.”
The configuration is slightly more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Jul. 29, TD Cowen maintained a “Buy” rating on Molina Healthcare and raised the price target to $378, which implies a potential upside of 7.3% from the current price levels.
The mean price target of $370.36 represents a premium of 5.1% to MOH’s current levels. The Street-high price target of $406 implies a potential upside of 15.2% from the current price.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
