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Is Molina (MOH) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Molina (MOH - Free Report) . MOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.18, which compares to its industry's average of 15.95. MOH's Forward P/E has been as high as 26.16 and as low as 11.52, with a median of 18.65, all within the past year.

We also note that MOH holds a PEG ratio of 1.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MOH's industry currently sports an average PEG of 1.18. MOH's PEG has been as high as 1.71 and as low as 1.02, with a median of 1.33, all within the past year.

Finally, we should also recognize that MOH has a P/CF ratio of 11.09. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MOH's P/CF compares to its industry's average P/CF of 14.71. Within the past 12 months, MOH's P/CF has been as high as 67.91 and as low as -23.30, with a median of 11.33.

These are only a few of the key metrics included in Molina's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MOH looks like an impressive value stock at the moment.


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