Is Molina Healthcare Stock Underperforming the Dow?

Company Overview - Molina Healthcare, Inc. (MOH) has a market cap of $8.7 billion and provides managed healthcare services to low-income individuals and families through Medicaid, Medicare, and state insurance marketplace programs [1] - The company operates in four key segments: Medicaid, Medicare, Marketplace, and Other [1] Stock Performance - MOH shares have dropped 55.4% from their 52-week high of $359.97 and decreased 10.4% over the past three months, underperforming the Dow Jones Industrials Average, which rose by 5.6% during the same period [2] - Year-to-date, MOH stock is down 44.9%, lagging behind the Dow's nearly 13% gain, and has dipped 46.2% over the past 52 weeks compared to the Dow's 8.6% increase [3] Recent Financial Results - Following the Q3 2025 results on October 22, MOH shares tumbled 17.5% as adjusted EPS fell to $1.84 from $6.01 due to elevated medical costs, with about half of the underperformance attributed to the Marketplace segment [4] - The company has revised its full-year 2025 adjusted profit forecast to approximately $14 per share, citing ongoing pressure from higher-than-expected healthcare utilization, particularly in Medicare and Marketplace plans [4] Competitive Landscape - In comparison, rival CVS Health Corporation (CVS) has significantly outperformed MOH, with CVS stock surging 75.9% year-to-date and 43.2% over the past 52 weeks [5] - Analysts remain cautious about MOH's prospects, with a consensus rating of "Hold" from 18 analysts and a mean price target of $170, representing a 5.9% premium to current levels [5]