Molina Healthcare, Inc. (MOH), headquartered in Long Beach, California, provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. Valued at $16.5 billion by market cap, the company offers health plans in California, Washington, Utah, and Michigan, as well as primary care clinics located in Northern and Southern California.

Shares of this leading provider of managed healthcare services have underperformed the broader market over the past year. MOH has declined 10.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 10.2%. However, in 2025, MOH’s stock rose 4.9%, surpassing the SPX’s 1.3% dip on a YTD basis. 

Narrowing the focus, MOH’s outperformance is apparent compared to the iShares U.S. Healthcare Providers ETF (IHF). The exchange-traded fund has declined about 12.8% over the past year. Moreover, MOH’s returns on a YTD basis outshine the ETF’s 3.7% losses over the same time frame.

MOH's underperformance is due to President Trump's criticism of the Federal Reserve's slow approach to interest rate cuts, which raised concerns about political interference in monetary policy. Additionally, the lack of progress in trade negotiations, particularly with China, further dampened investor sentiment. Fed Chair Jerome Powell's cautious stance also contributed to market sensitivity. 

On Apr. 23, MOH shares closed up more than 3% after reporting its Q1 results. Its adjusted EPS of $6.08 beat Wall Street expectations of $5.86. The company’s revenue was $11.2 billion, surpassing Wall Street forecasts of $11.1 billion. MOH expects full-year adjusted EPS to be $24.50.

For the current fiscal year, ending in December, analysts expect MOH’s EPS to grow 7.8% to $24.42 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion. 

Among the 15 analysts covering MOH stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, eight “Holds,” and one “Moderate Sell.”

This configuration is more bullish than three months ago, with five analysts suggesting a “Strong Buy.” 

On May 12, Wells Fargo & Company (WFC) analyst Stephen Baxter maintained a “Buy” rating on MOH with a price target of $372, implying a potential upside of 21.9% from current levels.

The mean price target of $361.14 represents an 18.3% premium to MOH’s current price levels. The Street-high price target of $414 suggests a notable upside potential of 35.6%.