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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Molina (MOH - Free Report) . MOH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.41 right now. For comparison, its industry sports an average P/E of 15.68. Over the past 52 weeks, MOH's Forward P/E has been as high as 26.16 and as low as 11.52, with a median of 18.42.

Investors will also notice that MOH has a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MOH's industry currently sports an average PEG of 1.16. Over the last 12 months, MOH's PEG has been as high as 1.71 and as low as 1.02, with a median of 1.32.

Finally, we should also recognize that MOH has a P/CF ratio of 11.30. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.57. Over the past 52 weeks, MOH's P/CF has been as high as 67.91 and as low as -23.30, with a median of 11.40.

These are just a handful of the figures considered in Molina's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MOH is an impressive value stock right now.


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