Molina Healthcare Stock Hits Key Support – Buying Opportunity?
Molina Healthcare (MOH) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($133.85 – $147.95), levels from which it has bounced meaningfully before. In the last 10 years, Molina Healthcare stock received buying interest at this level 3 times and subsequently went on to generate 75.7% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 4/8/2020 | 24.4% | 121 |
| 9/23/2020 | 174.1% | 1273 |
| 8/4/2025 | 28.5% | 64 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For MOH Read Buy or Sell MOH Stock to see how convincing this buy opportunity might be.
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Here are some quick data points for Molina Healthcare that should help decision:
- Revenue Growth: 13.7% LTM and 12.8% last 3 year average.
- Cash Generation: Nearly -1.3% free cash flow margin and 3.0% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for MOH was 6.7%.
- Valuation: MOH stock trades at a PE multiple of 8.4
For quick background, Molina Healthcare provides managed health care services to low-income families and individuals through Medicaid, Medicare, and government programs across 18 states, serving over 5 million members.
| MOH | S&P Median | |
|---|---|---|
| Sector | Health Care | – |
| Industry | Managed Health Care | – |
| PE Ratio | 8.4 | 23.6 |
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| LTM* Revenue Growth | 13.7% | 6.1% |
| 3Y Average Annual Revenue Growth | 12.8% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 6.7% | 0.2% |
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| LTM* Operating Margin | 3.0% | 18.8% |
| 3Y Average Operating Margin | 4.0% | 18.2% |
| LTM* Free Cash Flow Margin | -1.3% | 13.5% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
MOH isn’t immune to big drops. It slid 59% in the Global Financial Crisis and around 30% in the 2018 correction, the Covid selloff, and the recent inflation shock. Even with solid fundamentals, this stock has shown it can take a hit when markets turn sour. Good factors don’t erase risk.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read MOH Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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