Are Wall Street Analysts Predicting Molina Healthcare Stock Will Climb or Sink?

Core Insights - Molina Healthcare, Inc. is a significant player in the U.S. managed care sector, focusing on health insurance for individuals and families under government programs, with a market cap of $7.7 billion [1] Stock Performance - Molina shares have experienced a significant decline of 52.2% over the past year, contrasting sharply with the S&P 500 Index, which gained 11% during the same period [2] - In the last six months, Molina's stock plummeted 55.7%, while the S&P 500 Index rose by 13% [2] Industry Comparison - Within the healthcare sector, Molina's performance has lagged behind the SPDR S&P Health Care Services ETF, which increased by 12.5% over the past year and 8.6% over the past six months [3] Financial Results - For Q3 2025, Molina reported a revenue increase of 11% year over year, reaching $11.5 billion, but adjusted EPS fell dramatically by 69.4% to $1.84 [4] - The consolidated medical care ratio rose to 92.6%, primarily due to higher costs in the ACA segment [4] - Membership grew to 5.6 million, but this was insufficient to alleviate profit concerns [4] Earnings Guidance - Molina has revised its full-year adjusted EPS guidance down to approximately $14, a significant drop from earlier expectations of around $19, marking the third guidance reduction of the year [4] - Analysts project a 38.4% year-over-year decline in EPS for the current fiscal year, estimating it at $13.95 on a diluted basis [5] Analyst Sentiment - The consensus rating for Molina's stock is "Hold," with 18 analysts providing recommendations: 3 suggest "Strong Buy," 12 recommend "Hold," 1 has a "Moderate Sell," and 2 advise a "Strong Sell" [6]