We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Molina Healthcare (MOH) Stock?
Read MoreHide Full Article
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Molina Healthcare (MOH - Free Report) . MOH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.08 right now. For comparison, its industry sports an average P/E of 15.14. Over the past 52 weeks, MOH's Forward P/E has been as high as 13.98 and as low as 6.48, with a median of 11.46.
We should also highlight that MOH has a P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.61. Over the past 12 months, MOH's P/B has been as high as 4.44 and as low as 1.79, with a median of 3.71.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOH has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.29.
Finally, we should also recognize that MOH has a P/CF ratio of 7.07. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.91. Over the past year, MOH's P/CF has been as high as 16.68 and as low as 6.15, with a median of 12.60.
Value investors will likely look at more than just these metrics, but the above data helps show that Molina Healthcare is likely undervalued currently. And when considering the strength of its earnings outlook, MOH sticks out as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Molina Healthcare (MOH) Stock?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Molina Healthcare (MOH - Free Report) . MOH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.08 right now. For comparison, its industry sports an average P/E of 15.14. Over the past 52 weeks, MOH's Forward P/E has been as high as 13.98 and as low as 6.48, with a median of 11.46.
We should also highlight that MOH has a P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.61. Over the past 12 months, MOH's P/B has been as high as 4.44 and as low as 1.79, with a median of 3.71.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOH has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.29.
Finally, we should also recognize that MOH has a P/CF ratio of 7.07. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.91. Over the past year, MOH's P/CF has been as high as 16.68 and as low as 6.15, with a median of 12.60.
Value investors will likely look at more than just these metrics, but the above data helps show that Molina Healthcare is likely undervalued currently. And when considering the strength of its earnings outlook, MOH sticks out as one of the market's strongest value stocks.