These are top 10 stocks traded on the Robinhood UK platform in July
Investing.com - Cantor Fitzgerald maintained its Overweight rating and $312.00 price target on Molina Healthcare (NYSE:MOH) following the company’s revised 2025 guidance. The stock, currently trading at $175.49, has declined over 34% year-to-date, with InvestingPro data showing it trading at an attractive P/E ratio of 9.1x.
The healthcare insurer’s lowered 2025 guidance appears more reasonable than its July 7 preannouncement, though Cantor Fitzgerald expressed disappointment regarding management’s clarity in July and implications for the Health Insurance Exchange (HIX) business moving forward. According to InvestingPro analysis, 11 analysts have recently revised their earnings estimates downward, though the company maintains a "GREAT" overall financial health score.
Molina’s 2025 HIX Medical (TASE:BLWV) Loss Ratio (MLR) guidance was raised by 510 basis points to 85.1%, suggesting the product line may now operate at break-even to negative low-single-digit margins, compared to the estimated 2-3% margins at Elevance Health.
The revised numbers align more closely with investor expectations following Elevance Health’s comments and should provide more stability, though Cantor Fitzgerald noted new uncertainties emerged in the quarter.
Specific concerns include determining clean numbers excluding one-time SG&A benefits and explaining why Medicare experienced a 100 basis point increase in MLR when industry peers have reported constructive Medicare Advantage trends, though Molina’s book primarily consists of dual-eligible beneficiaries.
In other recent news, Molina Healthcare reported its second-quarter 2025 earnings, which fell short of analyst expectations. The company achieved adjusted earnings of $5.48 per share, missing the projected $5.82. Despite this, revenue increased by 15% year-over-year, reaching $11.43 billion and surpassing the consensus estimate of $10.94 billion. The rise in revenue, however, was overshadowed by rising medical costs, which negatively impacted profitability. Molina Healthcare’s medical care ratio, a crucial indicator of medical costs relative to premium revenue, worsened to 90.4% from 88.6% in the same period last year. This increase in medical costs led the company to revise its full-year guidance downward. These developments are part of the company’s recent financial disclosures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.