Advertisement
New Zealand markets open in 7 hours 3 minutes
  • NZX 50

    11,682.51
    -73.49 (-0.63%)
     
  • NZD/USD

    0.6159
    +0.0007 (+0.12%)
     
  • ALL ORDS

    8,034.90
    -23.70 (-0.29%)
     
  • OIL

    79.45
    +1.73 (+2.23%)
     
  • GOLD

    2,354.50
    +20.00 (+0.86%)
     

Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

ADVERTISEMENT

Molina (MOH)

Founded in 1980 and headquartered in Long Beach, CA, Molina Healthcare Inc. is a multi-state managed care organization participating exclusively in government-sponsored healthcare programs such as the Medicaid program and the State Children's Health Insurance Program (SCHIP), catering to low-income persons. It is a FORTUNE 500 company.

MOH is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 14.2X for the current fiscal year compared to the Medical - HMOs industry's P/E of 16.9X. Additionally, MOH has a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 13.7X. Value investors should also note MOH's Price/Sales ratio of 0.5X.

A company's earnings performance is important for value investors as well. For fiscal 2023, seven analysts revised their earnings estimate higher in the last 60 days for MOH, while the Zacks Consensus Estimate has increased $0.43 to $20.19 per share. MOH also holds an average earnings surprise of 5.4%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding MOH to their portfolios.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Molina Healthcare, Inc (MOH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research