Molina Healthcare stock hits 52-week low at $262.29

Molina Healthcare Inc . (NYSE:MOH) stock reached a 52-week low of $262.29, marking a notable point in its trading history. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.3, with management actively buying back shares. The stock currently trades at a P/E ratio of 15.2x while delivering impressive revenue growth of 16.24%. Despite this dip, the stock has seen a modest 1-year change of 3.34%, reflecting some resilience in its performance over the past year. The healthcare company’s stock has navigated various market conditions, and this recent low may prompt investors to reassess its valuation and potential for future growth. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional exclusive insights available for subscribers, including detailed valuation metrics and growth projections in the comprehensive Pro Research Report.

In other recent news, Molina Healthcare reported strong financial results for Q1 2025, with earnings per share (EPS) of $6.08, surpassing analysts’ expectations of $5.97. The company’s revenue also exceeded projections, reaching $11.15 billion compared to the forecasted $10.83 billion. Morgan Stanley (NYSE:MS) initiated coverage on Molina Healthcare with an Overweight rating and a price target of $364, citing the company’s focus on government-sponsored managed care and potential for premium revenue growth. Cantor Fitzgerald maintained its Overweight rating and $356 price target on Molina Healthcare, emphasizing the company’s ability to improve margins in Medicaid and Medicare by 2025.

Additionally, Cantor Fitzgerald projected a limited impact on Molina Healthcare from tightened work requirements for Medicaid enrollees, estimating a 0.6% impact on 2026 earnings per share. The firm highlighted Molina Healthcare’s successful contract awards in Nevada and Illinois, which are expected to drive future growth. Molina Healthcare has set a premium revenue guidance of $42 billion for 2025, with an adjusted EPS target of at least $24.50, representing an 8% year-over-year growth.

In contrast, Centene (NYSE:CNC) faced a price target reduction from BofA Securities, which lowered it to $52 due to concerns about higher acuity in its Marketplace population and unexpected Medicaid trends. BofA maintained a Neutral rating on Centene, while noting better-than-expected trends in its Medicare Advantage business. These developments underscore the current dynamics and challenges within the healthcare sector, particularly for companies involved in government-sponsored programs.

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