Is Molina (MOH) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Molina (MOH). MOH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.95 right now. For comparison, its industry sports an average P/E of 13.81. Over the past 52 weeks, MOH's Forward P/E has been as high as 26.16 and as low as 11.52, with a median of 18.16.
Investors will also notice that MOH has a PEG ratio of 0.96. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MOH's industry currently sports an average PEG of 1.04. Within the past year, MOH's PEG has been as high as 1.71 and as low as 0.92, with a median of 1.31.
Finally, investors will want to recognize that MOH has a P/CF ratio of 9.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MOH's current P/CF looks attractive when compared to its industry's average P/CF of 12.96. MOH's P/CF has been as high as 67.91 and as low as -23.30, with a median of 11.48, all within the past year.
These are only a few of the key metrics included in Molina's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MOH looks like an impressive value stock at the moment.
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