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Is Molina Healthcare (MOH) Outperforming Other Medical Stocks This Year?

Zacks Equity Research
SARTORIUS AG (SARTF) delivered earnings and revenue surprises of 8.75% and 6.91%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

Investors focused on the Medical space have likely heard of Molina Healthcare (MOH), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of MOH and the rest of the Medical group's stocks.

Molina Healthcare is a member of our Medical group, which includes 844 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. MOH is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for MOH's full-year earnings has moved 13.99% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, MOH has moved about 8.88% on a year-to-date basis. Meanwhile, the Medical sector has returned an average of 1.38% on a year-to-date basis. This shows that Molina Healthcare is outperforming its peers so far this year.

Breaking things down more, MOH is a member of the Medical - HMOs industry, which includes 11 individual companies and currently sits at #13 in the Zacks Industry Rank. Stocks in this group have lost about 3.74% so far this year, so MOH is performing better this group in terms of year-to-date returns.

Investors in the Medical sector will want to keep a close eye on MOH as it attempts to continue its solid performance.

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