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Molina (MOH) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
Bankwell Financial (BWFG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Molina (MOH) closed the most recent trading day at $146.37, moving +0.36% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.42%.

Heading into today, shares of the provider of Medicaid-related services had gained 8.52% over the past month, outpacing the Medical sector's gain of 4.2% and the S&P 500's gain of 2.2% in that time.

Wall Street will be looking for positivity from MOH as it approaches its next earnings report date. In that report, analysts expect MOH to post earnings of $2.56 per share. This would mark year-over-year growth of 13.78%. Meanwhile, our latest consensus estimate is calling for revenue of $4.08 billion, down 16.49% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.93 per share and revenue of $16.39 billion. These totals would mark changes of +3.02% and -13.24%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MOH. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. MOH is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, MOH currently has a Forward P/E ratio of 13.34. For comparison, its industry has an average Forward P/E of 14.86, which means MOH is trading at a discount to the group.

We can also see that MOH currently has a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
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