Molina Healthcare | MOH | Long at $181.69Healthcare providers and services are at a major discount right now: and may be discounted even more this year. I am personally buying and long-term holding the fear, knowing the baby boom generation is going to utilize our healthcare system at a rate unseen in modern times. While the price discounts are valid "right now" given the current political administration's cuts, long-term it is far from valid... The strategy I am using with healthcare stocks ( NYSE:MOH , NYSE:CNC , NYSE:UNH , NYSE:ELV , etc) is cost averaging: not buying one single large position in an effort to predict bottom but buying smaller positions over time to create a cost average "near" bottom. If you are a day trader or want a quick swing in healthcare, I don't think it's going to happen for a bit. But those not entering in the coming months / year will likely miss out on a very large healthcare boom - especially when AI truly enters the picture in this sector...
Fundamentally, Molina Healthcare NYSE:MOH is a very strong company. Low debt-to-equity (.9x), P/E of 8.8x, quick ratio of 1.7x, $41 billion in revenue in 2024. Yes, there will be issues in the near-term due to Medicaid and other funding cuts. But long-term, this sector is primed to benefit from an aging population.
So, while NYSE:MOH is in a personal buy zone at $181.69, I don't think this is necessarily bottom. I anticipate this stock to drop even further, eventually closing the daily price gap at $135.00. My next buys are in the $150's and $130's, thus cost averaging into a larger position. For true value investors, those prices and anything below is a steal. Today's negative healthcare sector noise is loud, but it does not represent the future.
Targets into 2028:
$226.00 (+24.3%)
$290.00 (+59.6%)
