10 Best Healthcare Stocks For Long-Term Investment

4. Molina Healthcare, Inc. (NYSE:MOH)

Number of Hedge Fund Holders: 48 

Molina Healthcare, Inc. (NYSE:MOH) is a managed care organization providing health insurance primarily for low-income individuals through Medicaid and Medicare. Instead of manufacturing products, it delivers healthcare coverage via government contracts, premiums, and value-based care. The company also generates revenue from pharmacy services and supplemental products like dental and vision coverage.

Molina Healthcare, Inc. (NYSE:MOH) reported strong Q4 2024 and full-year results, with total revenue reaching $40.65 billion, a 19% increase from 2023. Premium revenue grew to $38.6 billion, which was driven by contract wins, acquisitions, and service area expansions, though partially offset by Medicaid redeterminations.

The company’s profitability remained solid, with GAAP net income per diluted share rising 9% to $20.42 and adjusted EPS increasing 8% to $22.65. Molina Healthcare, Inc. (NYSE:MOH) is considered one of the best healthcare stocks, with a consolidated Medical Care Ratio (MCR) standing at 89.1%, and Medicaid MCR slightly above expectations due to redetermination-related shifts. The Medicare MCR was 89.1%, while the Marketplace MCR performed well at 75.4%.

Operating efficiency remained strong, with a well-managed General and Administrative (G&A) expense ratio of 6.7%. However, operating cash flow declined to $644 million from $1.66 billion in 2023 due to timing differences in government receivables and payables. The company repurchased 1.7 million shares for $500 million in Q4, reflecting confidence in its value.

Molina Healthcare, Inc. (NYSE:MOH) continues to expand its presence in Medicaid and Medicare Duals markets, leveraging new contract wins to strengthen its competitive position and achieve long-term financial targets.