The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being under ...

Core Viewpoint - Molina (MOH) shares have recently declined by 6.5% over the past four weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, with reduced selling pressure, and is a bullish signal for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, suggesting that buyers are starting to emerge after a downtrend [4][5]. - The occurrence of this pattern at the bottom of a downtrend signals that bears may be losing control, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for Molina, which is a bullish indicator and suggests potential price appreciation [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0.1%, indicating that analysts expect better earnings than previously predicted [8]. - Molina currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Group 1 - Molina Healthcare (NYSE: MOH) is rated as a Strong Buy despite concerns over the U.S. plan to cut Medicaid expenses by $880 billion over the next ten years [1] - The article emphasizes the potential for investment opportunities in Molina Healthcare amidst the proposed budget cuts [1] Group 2 - The author, Daniel Mellado, has extensive experience in analyzing agricultural commodities and financial investment portfolios, which supports the credibility of the analysis presented [1] - Mellado's background includes managing trading and data analysis teams, indicating a strong foundation in financial markets [1]

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores system in identifying strong stocks, particularly focusing on value investing strategies [1][2][3] Company Analysis - Molina Healthcare (MOH) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [4] - MOH's current P/E ratio is 11.48, which is slightly below the industry average of 11.51, indicating potential undervaluation [4] - Over the past 52 weeks, MOH's Forward P/E has fluctuated between 10.15 and 14.07, with a median of 12.32 [4] - The company has a PEG ratio of 0.94, which is lower than the industry average of 1.01, suggesting that it may be undervalued relative to its expected earnings growth [5] - MOH's PEG ratio has ranged from 0.81 to 1.24 over the last 12 months, with a median of 1 [5] - The combination of these metrics indicates that MOH is likely undervalued and presents an attractive investment opportunity based on its earnings outlook [6]

Molina Healthcare (MOH) Q1 2025 Earnings Call April 24, 2025 04:37 PM ET Company Participants Jeffrey Geyer - Vice PresidentJoseph Zubretsky - President & CEOMark Keim - Senior EVP, CFO & TreasurerAndrew Mok - DirectorA.J. Rice - Managing DirectorJohn Stansel - VP - Equity ResearchLance Wilkes - Managing DirectorDave Windley - Managing Director Conference Call Participants Stephen Baxter - Senior Equity Research AnalystJoshua Raskin - Research AnalystJustin Lake - Analyst - Healthcare ServicesSarah James - ...

Molina Healthcare, Inc. (NYSE:MOH) Q1 2025 Earnings Conference Call April 24, 2025 8:00 AM ET Company Participants Jeffrey Geyer - Head of Investor Relations Joe Zubretsky - President and CEO Mark Keim - CFO Conference Call Participants Stephen Baxter - Wells Fargo Andrew Mok - Barclays Josh Raskin - Nephron Research A.J. Rice - UBS Justin Lake - Wolfe Research John Stansel - JP Morgan Sarah James - Cantor Fitzgerald Joanna Gajuk - Bank of America Ryan Langston - TD Cowen Lance Wilkes - Bernstein Michael Ha ...

Core Viewpoint - Molina Healthcare Inc. reported strong first-quarter 2025 results, with adjusted EPS of $6.08, exceeding estimates and showing a year-over-year growth of 6.1% [1][2] Financial Performance - Total revenues reached $11.15 billion, reflecting a 12.2% year-over-year increase and slightly surpassing consensus estimates [1][3] - Premium revenues amounted to $10.63 billion, an 11.8% increase year over year, driven by contract wins, buyouts, and rate hikes, although partially offset by Medicaid redeterminations [3][4] - Total operating expenses were $10.7 billion, up 12.7% year over year, primarily due to rising medical care costs and higher administrative expenses [5][6] Membership and Income - Total membership increased by 0.4% year over year to approximately 5.8 million, although it fell short of consensus estimates by 3.3% [4] - Adjusted net income decreased by 0.3% year over year to $333 million [6] Financial Position - As of March 31, 2025, cash and cash equivalents rose to $4.9 billion from $4.7 billion at the end of 2024, while total assets increased to $16.4 billion [7] - Long-term debt increased to $3.6 billion from $2.9 billion at the end of 2024 [7][8] Guidance - The company reaffirmed its 2025 guidance, expecting premium revenues of around $42 billion, indicating a 9% improvement from 2024 [9] - Adjusted EPS is projected to be a minimum of $24.50, reflecting an 8% increase from the previous year [9][10]

Financial Performance - Total revenue for Q1 2025 was $11,147 million, a 12.2% increase from $9,931 million in Q1 2024[7] - Premium revenue increased to $10,628 million, up 11.8% from $9,504 million year-over-year[7] - Net income for Q1 2025 was $298 million, slightly down from $301 million in Q1 2024, resulting in a diluted net income per share of $5.45[7][8] - Operating income for the quarter was $433 million, compared to $426 million in the same period last year, reflecting a 1.6% increase[7] - Comprehensive income for Q1 2025 was $327 million, up from $298 million in Q1 2024[8] - The consolidated medical care ratio (MCR) was 89.2%, up from 88.5% in Q1 2024, primarily due to higher medical benefits utilization[88] - General and administrative expense (G&A) ratio improved to 6.9% from 7.2% in Q1 2024, indicating better operating discipline[88] Membership and Service Expansion - Molina Healthcare served approximately 5.8 million members across 22 states as of March 31, 2025[16] - Membership increased to 5.8 million as of March 31, 2025, reflecting a growth of 25,000 members, or 0.4%, compared to the previous year[88] - The company is focused on expanding its operations in new states and integrating acquisitions to support growth[83] Medical Care Costs - The company reported a decrease in medical care costs to $9,479 million from $8,414 million year-over-year, reflecting improved cost management[7] - For the three months ended March 31, 2025, total medical care costs amounted to $9,479 million, a decrease from $9,665 million in the prior year[57] - Medical care costs totaled $9,479 billion in Q1 2025, compared to $8,414 billion in Q1 2024[88] Assets and Liabilities - Total assets increased to $16,386 million from $15,630 million at the end of 2024, marking a 4.8% growth[10] - Long-term debt rose to $3,574 million, up from $2,923 million at the end of 2024, indicating a significant increase in leverage[10] - Cash and cash equivalents at the end of the period were $4,955 million, compared to $4,572 million at the end of Q1 2024[14] - The ending balance of medical claims and benefits payable as of March 31, 2025, was $4,804 million, compared to $4,571 million as of March 31, 2024[57] Acquisitions - The acquisition of ConnectiCare was completed for $350 million in cash, with acquisition costs amounting to $2 million recorded as general and administrative expenses[38] - The provisional fair value of assets acquired in the ConnectiCare acquisition included current assets of $450 million and goodwill of $197 million[41] - The company closed the acquisition of ConnectiCare for $350 million on February 1, 2025, expanding its presence in the Marketplace and Medicare segments[109] Cash Flow and Financing Activities - Net cash provided by operating activities was $190 million in Q1 2025, down from $214 million in Q1 2024, mainly due to timing differences in payments[137] - Net cash used in investing activities was $123 million in Q1 2025, a decrease of $365 million compared to $488 million in Q1 2024, reflecting changes in investment activity[138] - Net cash provided by financing activities was $147 million in Q1 2025, an increase of $209 million compared to a cash outflow of $62 million in Q1 2024[139] Stock Repurchase - The company repurchased approximately 1,679,000 shares for $500 million in the first quarter of 2025, exhausting the $1 billion repurchase authorization from October 2024[69] - The company has authorized an additional $1 billion for stock repurchases in April 2025, extending through December 31, 2026[71] Tax and Regulatory Considerations - The effective tax rate may fluctuate due to various factors, including projected pretax earnings and changes in tax laws[34] - The effective income tax rate decreased to 23.7% in Q1 2025 from 24.5% in Q1 2024, influenced by increased tax benefits and lower state taxes[104] Future Risks - Future risks include potential Medicaid funding reductions and regulatory changes impacting the healthcare industry[83]

Molina (MOH) came out with quarterly earnings of $6.08 per share, beating the Zacks Consensus Estimate of $5.86 per share. This compares to earnings of $5.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.75%. A quarter ago, it was expected that this provider of Medicaid-related services would post earnings of $5.81 per share when it actually produced earnings of $5.05, delivering a surprise of -13.08%.Over the last four qu ...

"Our first quarter results reflect our team's disciplined approach to medical cost management in an improving rate environment," said Joseph Zubretsky, President and Chief Executive Officer. "Our 2025 earnings and growth profiles are solid, and we remain confident in our ability to achieve our 13% to 15% long-term adjusted EPS growth target." News Release Investor Contact: Jeffrey Geyer, Jeffrey.Geyer@molinahealthcare.com, 305-317-3012 Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, ...