Company Overview - Molina Healthcare, Inc. (MOH) is a managed care company providing health insurance and related services primarily through government-sponsored programs such as Medicaid, Medicare, and state health insurance exchanges, with a market capitalization of approximately $10.4 billion [1] Earnings Expectations - For fiscal Q3 2025, analysts anticipate a profit of $3.97 per share, representing a 33.9% decline from $6.01 per share in the same quarter last year [2] - For the full fiscal year 2025, the expected profit is $18.87 per share, down 16.7% from $22.65 in fiscal 2024, but projected to grow 4% year-over-year to $19.63 in fiscal 2026 [3] Stock Performance - MOH stock has decreased by 41.5% over the past 52 weeks, underperforming the SPDR S&P Health Care Services ETF's 7% gains and the S&P 500 Index's 17.6% increase during the same period [4] Margin Pressures - The decline in stock price is attributed to rising medical costs across its Medicaid, Medicare, and Affordable Care Act (ACA) businesses, which are squeezing margins, leading the company to cut its full-year earnings guidance [5] Regulatory Risks - There is significant regulatory and policy uncertainty, particularly regarding Medicaid funding, ACA subsidies, and changes to health insurance programs, which adds additional risk for investors [6] Analyst Ratings - The overall rating for MOH stock is "Hold," a downgrade from the previous "Moderate Buy" rating three months ago, with 17 analysts covering the stock: four recommend "Strong Buy," 11 advise "Hold," one suggests "Moderate Sell," and one gives a "Strong Sell" rating [7] - The stock is currently trading above its mean price target of $189.43, with a Street-high price target of $228 indicating a 17.4% premium to current price levels [7]