Molina Healthcare, Inc. MOH is a multi-state managed care organization that provides healthcare services under Medicaid, Medicare and state insurance marketplaces. The company operates through four segments — Medicaid, Medicare, Marketplace and Other — with a primary focus on delivering affordable healthcare coverage to low-income individuals and families.
Headquartered in Long Beach, CA, it carries a market capitalization of nearly $9.2 billion. The stock has gained 18.8% over the past six months, outperforming the industry’s 17.3% growth. MOH currently trades at a trailing 12-month P/E ratio of 26.83X, higher than the industry average of 17.09X, reflecting investors’ confidence in its long-term growth prospects and operational strength.
Supported by solid fundamentals, the stock currently carries a Zacks Rank #2 (Buy).
Where Do Estimates for MOH Stand?
The Zacks Consensus Estimate for Molina Healthcare’s 2026 earnings is pegged at $5.23 per share. In the past 60 days, it has witnessed five upward estimate revisions against none in the opposite direction. The consensus estimate for revenues is pegged at $44.07 billion for 2026. The 2027 revenue estimate is pegged at $46.4 billion, indicating a 5.3% year-over-year increase.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote
MOH’s Growth Drivers
MOH has steadily expanded its market presence through strategic acquisitions across Medicaid, Medicare and long-term care programs, strengthening its geographic footprint and broadening its service capabilities. The company also maintains solid financial flexibility for future expansion, with no borrowings under its $1.25 billion revolving credit facility and access to up to $800 million in incremental term-loan capacity. Further, its return on invested capital (ROIC) of 7% compares with the industry average of 5.5%, highlighting disciplined capital deployment and efficient integration of acquired businesses.
Molina Healthcare’s premium revenues declined 4.3% year over year to $10.2 billion in the first quarter of 2026 due to lower Medicaid and Marketplace membership. However, the company reaffirmed its full-year 2026 premium revenue guidance of nearly $42 billion, reflecting management’s confidence in the stability of its core business.
Expense discipline remains a key strength for Molina Healthcare, with the adjusted G&A ratio improving 50 basis points in 2024 and another 20 basis points in 2025. Although the adjusted G&A ratio increased to 6.9% in first-quarter 2026 from 6.3% a year ago, management still expects the full-year ratio to remain around 6.4% reflecting ongoing scalability initiatives.
Molina Healthcare exited first-quarter 2026 with a strong balance sheet. As of March 31, 2026, it held $5.3 billion in cash and cash equivalents against long-term debt of $3.8 billion. Operating cash flow surged to $1.1 billion from $190 million in the prior-year quarter, reflecting solid cash generation. Its healthy liquidity profile provides flexibility to support contractual capital needs, invest in growth opportunities and navigate industry volatility.
Risks to Consider
There are a few factors investors should monitor closely.
Molina Healthcare continues to face pressure from elevated medical costs, with its consolidated MCR rising to 91.1% in first-quarter 2026 from 89.2% a year ago. Management also expects Medicaid and Marketplace MCRs to remain elevated through 2026, which could weigh on margin recovery.
MOH trades at a premium valuation, with a forward P/E of 26.83X compared with the industry average of 17.09X and its five-year median of 14.69X. The stretched valuation may limit upside potential if earnings growth remains under pressure.
Other Key Picks
Some other top-ranked stocks in the Medical space are Centene Corporation CNC, The Joint Corp. JYNT and Indivior Pharmaceuticals, Inc. INDV, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.47 per share, indicating 66.8% year-over-year growth. It has witnessed nine upward revisions in the past 30 days, with no movement in the opposite direction. CNC beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 74.9%. The consensus estimate for 2026 revenues is pinned at $191.03 billion.
The Zacks Consensus Estimate for Joint’s 2026 earnings is pegged at 51 cents per share, which has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. JYNT beat earnings estimate in each of the trailing four quarters, with the average surprise being 125.24%. The consensus estimate for 2026 revenues is pinned at $61.11 million, indicating an 11.3% year-over-year increase.
The Zacks Consensus Estimate for Indivior Pharmaceuticals’ 2026 earnings is pegged at $3.35 per share, indicating a 34% year-over-year improvement. INDV beat earnings estimates in each of the trailing four quarters, with the average surprise being 65.44%. The consensus estimate for 2026 revenues is pinned at $1.26 billion, implying 1.5% year-over-year growth.
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Molina Healthcare, Inc (MOH): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).