Are Investors Undervaluing Molina Healthcare (MOH) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Molina Healthcare (MOH). MOH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.52 right now. For comparison, its industry sports an average P/E of 15.37. Over the past year, MOH's Forward P/E has been as high as 18.76 and as low as 12.61, with a median of 14.30.
MOH is also sporting a PEG ratio of 1.03. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MOH's industry currently sports an average PEG of 1.16. Over the last 12 months, MOH's PEG has been as high as 1.12 and as low as 0.65, with a median of 0.97.
Value investors will likely look at more than just these metrics, but the above data helps show that Molina Healthcare is likely undervalued currently. And when considering the strength of its earnings outlook, MOH sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
