Category: MOH

MOH – Molina (MOH) Arm's Medicaid Contract to Aid Service in Nevada

Molina Healthcare, Inc.’s (MOH Free Report) Nevada health plan subsidiary won a Medicaid-managed care contract from the Nevada Department of Health and Human Services — Division of Health Care Financing and Policy (DHCFP).

The new four-year contract comes with the feasibility of two-year extension and will be effective Jan 1, 2022. The health insurer’s Nevada health plan is one of the four Managed Care Organizations providing healthcare coverage to around 630,000 Medicaid beneficiaries in Clark County (Las Vegas area) and Washoe County (Reno area) through the TANF, CHIP and Medicaid Expansion programs.

The company will also take part in the state-based Affordable Care Act Exchange. The latest deal is likely to empower Molina in dispensing enhanced healthcare services and programs on a continual basis, thereby serving the regional residents with greater efficiency.

The recent move seems a time opportune one, considering the ample prospects prevalent in the Medicaid market. Per a McKinsey report, continuous program expansions and the inclination of complex high-need population toward managed care programs can be cited as one of the major factors driving growth across the Medicaid market.

The same article highlighted another important fact put forward by the Centers for Medicare & Medicaid Services (CMS), which projects the Medicaid plan to evolve into a roughly $1-trillion program by 2026 from the $629-billion program in 2018.

In April, the health insurer’s Ohio health plan unit was chosen as an awardee in all three regions across the state to the Medicaid managed care RFA. The contract was granted by the Ohio Department of Medicaid or ODM on Sep 30, 2020.

The leading company, currently carrying a Zacks Rank #3 (Hold), offers managed healthcare services under the Medicaid and Medicare programs, and through the state insurance marketplaces. Molina is focused on government-sponsored healthcare programs for families and individuals.

In 2020, the Medicaid premium revenues contributed to 73% of the company’s top line. Its Medicaid contracts with the states of California, Ohio, Texas and Washington accounted for around 10% or more of the consolidated Medicaid premium revenues in the years 2019 and 2020. Other healthcare providers boasting a strong Medicaid business across the United States include Humana Inc. (HUM Free Report) , Centene Corporation (CNC Free Report) and Cigna Corporation (CI Free Report) . 

Price Performance

Shares of Molina have gained 33.3% in a year’s time, outperforming its industry‘s rally of 29.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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Image Source: Zacks Investment Research

MOH – Will Molina Healthcare Stock Rebound After An 8% Fall In A Week?

The stock price of Molina Healthcare, a managed care company best known for its health insurance through Medicaid and Medicare, reached its all-time high of $279 earlier this month, before a recent sell-off in health insurance stocks, led to an 11% fall in MOH stock to levels of around $248 currently. MOH stock is down 8% over the last five trading sessions. While the company raised its full-year guidance for revenue and earnings, there are concerns of rising Covid-19 related costs. The company benefited from lower medical costs in 2020, primarily due to fewer elective surgeries, but that trend has now reversed. With rising vaccination rates, there is a rise in the volume of elective surgeries, primarily due to a backlog that was created last year. This means health insurance companies will need to shell out more money to pay those bills. Molina’s

MOH
medical costs as a percentage of premium income has risen to 88% in Q2 2021, compared to 82% in the prior year quarter, and it is likely to remain high in the near term.

Now, after an 8% fall in a week, will MOH stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent? According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MOH stock average 8% in the next one-month (twenty-one trading days) period after experiencing an 8% drop over the previous week (five trading days). Also, the issue of high medical costs appears to be transient, and the company has raised its full-year outlook. As such, we believe that the MOH stock will likely rebound in the near term. But how would these numbers change if you are interested in holding MOH stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Molina Healthcare stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!

MACHINE LEARNING ENGINE – try it yourself:

IF MOH stock moved by -5% over five trading days, THEN over the next twenty-one trading days MOH stock moves an average of 6%, with a 64% probability of a positive return over this period.

Some Fun Scenarios, FAQs & Making Sense of Molina Healthcare Stock Movements:

Question 1: Is the average return for Molina Healthcare stock higher after a drop?

Answer: Consider two situations,

Case 1: Molina Healthcare stock drops by -5% or more in a week

Case 2: Molina Healthcare stock rises by 5% or more in a week

Is the average return for Molina Healthcare stock higher over the subsequent month after Case 1 or Case 2?

MOH stock fares better after Case 1, with an average return of 6% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.3% for Case 2.

In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.

Try the Trefis machine learning engine above to see for yourself how Molina Healthcare stock is likely to behave after any specific gain or loss over a period.

Question 2: Does patience pay?

Answer: If you buy and hold Molina Healthcare stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.

Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!

For MOH stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:

You can try the engine to see what this table looks like for Molina Healthcare after a larger loss over the last week, month, or quarter.

Question 3: What about the average return after a rise if you wait for a while?

Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although MOH stock appears to be an exception to this general observation.

It’s pretty powerful to test the trend for yourself for Molina Healthcare stock by changing the inputs in the charts above.

While MOH stock may rise in the near term, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Cerner vs. Humana.

See all Trefis Featured Analyses and Download Trefis Data here

MOH – Molina Healthcare (MOH): Strong Industry, Solid Earnings Estimate Revisions

One stock that might be an intriguing choice for investors right now is Molina Healthcare, Inc. (MOH Free Report) . This is because this security in the Medical – HMOs space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.

This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Medical – HMOs space as it currently has a Zacks Industry Rank of 38 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.

Meanwhile, Molina Healthcare is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.

In fact, over the past month, current quarter estimates have risen from $3.41 per share to $3.45 per share, while current year estimates have risen from of $13.18 per share to $13.34 per share. This has helped Molina Healthcare to earn a Zacks Rank 2 (Buy), further underscoring the company’s solid position. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

So, if you are looking for a decent pick in a strong industry, consider Molina Healthcare. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.

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MOH – Molina Healthcare, Inc. to Present at 39th Annual J.P. Morgan Healthcare Conference

LONG BEACH, Calif.–(BUSINESS WIRE)–Molina Healthcare, Inc. (NYSE: MOH) (“the Company”) today announced that management will give a presentation, followed by a question and answer session, at the 39th Annual J.P. Morgan Healthcare Conference to be held in January 2021.

The Company’s conference presentation will take place on Thursday, January 14, 2021, starting at 11:40 a.m. Eastern Time and will be broadcast live. Access to the live broadcast of the Company’s presentation will be available on the Company’s website, molinahealthcare.com. Listeners are encouraged to log on approximately 15 minutes prior to the event to register and download any necessary software. For those unable to listen to the live broadcast, a replay will be available for 30 days on the Company’s website.

About Molina Healthcare

Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through its locally operated health plans, Molina Healthcare served approximately 4.0 million members as of September 30, 2020. For more information about Molina Healthcare, please visit molinahealthcare.com.

MOH – Is Molina Healthcare (MOH) Stock Outpacing Its Medical Peers This Year?

Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Is Molina Healthcare (MOH Free Report) one of those stocks right now? By taking a look at the stock’s year-to-date performance in comparison to its Medical peers, we might be able to answer that question.

Molina Healthcare is a member of the Medical sector. This group includes 930 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. MOH is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MOH’s full-year earnings has moved 5.86% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, MOH has returned 61.40% so far this year. At the same time, Medical stocks have gained an average of 2.33%. This shows that Molina Healthcare is outperforming its peers so far this year.

To break things down more, MOH belongs to the Medical – HMOs industry, a group that includes 10 individual companies and currently sits at #185 in the Zacks Industry Rank. This group has gained an average of 11.19% so far this year, so MOH is performing better in this area.

Investors with an interest in Medical stocks should continue to track MOH. The stock will be looking to continue its solid performance.