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華爾街日報Reassessing Molina Healthcare (MOH): Is the Recent Share Price Rebound Enough to Shift Its Valuation?
Why Molina Healthcare Is Back on Investors' Radar
Molina Healthcare (MOH) has quietly staged a comeback, with shares up about 9% over the past week and more than 22% this month, even as the past 3 months remain slightly negative.
See our latest analysis for Molina Healthcare.
That sharp 22.5% 1 month share price return looks more like a relief rally than a full turnaround, given the 41.3% year to date share price decline and similarly weak longer term total shareholder returns.
If Molina’s rebound has you reassessing the healthcare space, it could be worth scanning other managed care and medical names using our healthcare stocks to uncover fresh ideas.
With shares still down sharply this year despite modest revenue and profit growth, investors now face a key question: Is Molina genuinely undervalued after its slide, or is the recent bounce already pricing in a recovery?
Most Popular Narrative Narrative: 90% Undervalued
Compared with Molina Healthcare’s last close at $168.50, the most followed narrative points to a fair value near $170, implying substantial upside from deeper intrinsic estimates.
The analysts have a consensus price target of $196.714 for Molina Healthcare based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $330.0, and the most bearish reporting a price target of just $153.0.
Want to see how modest growth assumptions and shifting profit margins can still justify such a wide valuation range? The full narrative unpacks the surprisingly aggressive earnings trajectory, the revenue runway, and the lower future earnings multiple that has to hold for this price to make sense.
Result: Fair Value of $170 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, tighter state Medicaid budgets and higher medical cost inflation could quickly erode margins and challenge the assumed earnings recovery behind this valuation narrative.
Find out about the key risks to this Molina Healthcare narrative.
Build Your Own Molina Healthcare Narrative
If you see things differently or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.
A great starting point for your Molina Healthcare research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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