Molina Healthcare(US:MOH) Benzinga·2026-02-17 13:16Core Viewpoint - Molina Healthcare Inc. experienced a significant stock decline following a fourth-quarter earnings miss, reporting an unexpected adjusted loss of $2.75 per share compared to Wall Street's expectation of a profit of $0.34, leading to a more than 30% drop in stock price in a single session [2][4]. Financial Performance - The fourth-quarter loss was primarily due to $2.00 per share in unfavorable retroactive revenue adjustments in California and rising medical costs in Medicare and Marketplace segments [5]. - The stock is down 24.16% year-to-date, with a 49.60% decline over the past year, while the S&P 500 has only decreased by 0.33% during the same period [6]. Technical Indicators - Following the earnings report, Molina's stock momentum score fell from 14.04 to 5.72, indicating a significant deterioration in technical indicators [3]. - The stock maintains a weaker price trend across long, short, and medium terms, despite having a strong value ranking according to Benzinga's Edge Stock Rankings [3]. Investor Sentiment - Michael Burry, known for his "Big Short" investment strategy, has reaffirmed a contrarian position in Molina, despite facing a 27% loss on his estimated purchase price, arguing that the market's reaction is excessively negative [4]. Future Outlook - CEO Joseph Zubretsky has described 2026 as a "trough year" for margins, projecting an adjusted EPS of at least $5.00, which is significantly lower than previous forecasts, as the company transitions away from traditional Medicare Advantage products [5].