We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Is Molina Healthcare (MOH) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Molina Healthcare (MOH - Free Report) is a stock many investors are watching right now. MOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.31. This compares to its industry's average Forward P/E of 18.48. Over the past 52 weeks, MOH's Forward P/E has been as high as 23.62 and as low as 13.75, with a median of 17.41.
Investors should also note that MOH holds a PEG ratio of 0.93. 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. MOH's PEG compares to its industry's average PEG of 1.36. MOH's PEG has been as high as 1.12 and as low as 0.74, with a median of 0.96, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOH has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.7.
Investors could also keep in mind Select Medical (SEM - Free Report) , an Medical - HMOs stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Select Medical is trading at a forward earnings multiple of 9.14 at the moment, with a PEG ratio of 0.61. This compares to its industry's average P/E of 18.48 and average PEG ratio of 1.36.
Over the past year, SEM's P/E has been as high as 15.59, as low as 8.01, with a median of 10.41; its PEG ratio has been as high as 1.04, as low as 0.53, with a median of 0.96 during the same time period.
Select Medical sports a P/B ratio of 2.31 as well; this compares to its industry's price-to-book ratio of 4.38. In the past 52 weeks, SEM's P/B has been as high as 4.07, as low as 2.12, with a median of 2.86.
These are just a handful of the figures considered in Molina Healthcare and Select Medical'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 and SEM is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Molina Healthcare (MOH) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Molina Healthcare (MOH - Free Report) is a stock many investors are watching right now. MOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.31. This compares to its industry's average Forward P/E of 18.48. Over the past 52 weeks, MOH's Forward P/E has been as high as 23.62 and as low as 13.75, with a median of 17.41.
Investors should also note that MOH holds a PEG ratio of 0.93. 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. MOH's PEG compares to its industry's average PEG of 1.36. MOH's PEG has been as high as 1.12 and as low as 0.74, with a median of 0.96, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOH has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.7.
Investors could also keep in mind Select Medical (SEM - Free Report) , an Medical - HMOs stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Select Medical is trading at a forward earnings multiple of 9.14 at the moment, with a PEG ratio of 0.61. This compares to its industry's average P/E of 18.48 and average PEG ratio of 1.36.
Over the past year, SEM's P/E has been as high as 15.59, as low as 8.01, with a median of 10.41; its PEG ratio has been as high as 1.04, as low as 0.53, with a median of 0.96 during the same time period.
Select Medical sports a P/B ratio of 2.31 as well; this compares to its industry's price-to-book ratio of 4.38. In the past 52 weeks, SEM's P/B has been as high as 4.07, as low as 2.12, with a median of 2.86.
These are just a handful of the figures considered in Molina Healthcare and Select Medical'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 and SEM is an impressive value stock right now.