Molina (MOH - Free Report) closed the most recent trading day at $115.25, moving -0.59% from the previous trading session. This change lagged the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.4%.
Coming into today, shares of the provider of Medicaid-related services had lost 16.55% in the past month. In that same time, the Medical sector gained 0.32%, while the S&P 500 gained 3.92%.
Wall Street will be looking for positivity from MOH as it approaches its next earnings report date. The company is expected to report EPS of $2.70, down 0.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.12 billion, down 12.34% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.51 per share and revenue of $16.60 billion, which would represent changes of +8.48% and -12.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MOH. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. MOH is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, MOH is currently trading at a Forward P/E ratio of 10.08. Its industry sports an average Forward P/E of 15.77, so we one might conclude that MOH is trading at a discount comparatively.
We can also see that MOH currently has a PEG ratio of 1.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - HMOs was holding an average PEG ratio of 1.05 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.