InvestorsHub Logo
Followers 76
Posts 30351
Boards Moderated 85
Alias Born 03/22/2005

Re: None

Tuesday, 04/18/2023 11:32:15 PM

Tuesday, April 18, 2023 11:32:15 PM

Post# of 447
>>> Molina Healthcare (MOH) - >>> Millions of medical membership plans and counting

Focusing primarily on providing government-sponsored health insurance plans (mostly Medicaid and, to a lesser extent, Medicare and Marketplace insurance), Molina Healthcare (MOH) is a major health insurer. As of Dec. 31, 2022, the company's membership base was nearly 5.3 million. This explains how Molina Healthcare's market capitalization is just shy of $16 billion, which makes it the seventh-biggest health insurer in the U.S.

As one of the major medical insurers in the country, Molina Healthcare could continue to be a powerful growth stock in the future. Market research company Precedence Research anticipates that the global health insurance market will compound by almost 7% annually, from $2.2 trillion last year to $3.8 trillion by 2030. Organic growth from rising frequency of chronic medical conditions paired with acquisitions leaves the company with a lengthy growth runway.

This is why analysts believe Molina Healthcare's non-GAAP (adjusted) diluted earnings per share (EPS) will grow by 17.8% annually over the next five years. For context, that is well above the healthcare plans industry average annual growth outlook of 12.7%.

Yet, the stock trades at a forward price-to-earnings (P/E) ratio of 11.6. Putting this into perspective, that is significantly below the healthcare plans industry average forward P/E ratio of 13.5. Thanks to its above-average growth prospects and below-average valuation, I believe Molina Healthcare could deliver annual total returns around 17% over the next five to 10 years.



Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.