In the latest trading session, Molina (MOH) closed at $142.09, marking a +1.01% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 0.27%.
Coming into today, shares of the provider of Medicaid-related services had lost 3.89% in the past month. In that same time, the Medical sector lost 1.21%, while the S&P 500 gained 3.98%.
Investors will be hoping for strength from MOH as it approaches its next earnings release, which is expected to be July 30, 2019. On that day, MOH is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 14.67%. Meanwhile, our latest consensus estimate is calling for revenue of $4.08 billion, down 16.48% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.96 per share and revenue of $16.39 billion, which would represent changes of +3.3% and -13.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MOH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. MOH currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, MOH currently has a Forward P/E ratio of 12.84. Its industry sports an average Forward P/E of 15.97, so we one might conclude that MOH is trading at a discount comparatively.
Also, we should mention that MOH has a PEG ratio of 0.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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