Is Molina Healthcare (MOH) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
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 holds a P/E ratio of 15.09, while its industry has an average P/E of 16.44. Over the past year, MOH's Forward P/E has been as high as 18.55 and as low as 12.61, with a median of 14.29.
We also note that MOH holds a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MOH's PEG compares to its industry's average PEG of 1.22. Over the last 12 months, MOH's PEG has been as high as 1.11 and as low as 0.65, with a median of 0.98.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Molina Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOH feels like a great value stock at the moment.
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Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
