Is Molina Healthcare (MOH) The Best Healthcare Stock to Buy Now?
Key takeaways
- Is Molina Healthcare (MOH) The Best Healthcare Stock to Buy Now?
- Forget AI: Legendary Value Investor Seth Klarman Is Buying These 10 Value Stocks in 2026.
- While we acknowledge the potential of MOH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.
Is Molina Healthcare (MOH) The Best Healthcare Stock to Buy Now? Fahad Saleem Wed, June 10, 2026 at 10:01 PM GMT+7 1 min read MOH We just covered
Forget AI: Legendary Value Investor Seth Klarman Is Buying These 10 Value Stocks in 2026. Molina Healthcare (NYSE:MOH) ranks #8 (see Seth Klarman Is Buying These 5 Value Stocks in 2026). Baupost’s Stake: $84,460,000 Molina Healthcare (NYSE:MOH) is a managed care company focused on government-sponsored health programs — Medicaid, Medicare, and the ACA Marketplace. Its moat lies in long-standing state government contracts, deep expertise serving low-income populations, and an infrastructure built specifically around Medicaid managed care. The stock has been hammered amid Medicaid rate adjustments and elevated medical costs. But bulls argue this is a cyclical trough, not a structural problem. Medicaid managed care has a well-documented cycle — costs overshoot state reimbursement rates, companies take losses, states adjust rates higher, and margins recover. Molina Healthcare’s (NYSE:MOH) CEO has explicitly called 2026 the margin trough. Q1 2026 provided the first hard evidence of recovery. Adjusted EPS came in at $2.35, crushing the $1.29 consensus, sending the stock up 15% in a day. Bank of America issued a rare double upgrade to Buy, lifting its price target to $250 and projecting EPS could reach $30 by 2029 — nearly twice the Street consensus of $17.32.
While we acknowledge the potential of MOH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.