Molina (MOH) Loses 18.3% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Molina (MOH) has experienced significant selling pressure, resulting in an 18.3% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2] - MOH's current RSI reading of 21.88 suggests that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5] Group 2: Fundamental Analysis - There is a strong consensus among sell-side analysts to raise earnings estimates for MOH, with the consensus EPS estimate remaining unchanged over the last 30 days, which typically correlates with price appreciation [7] - MOH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]