10 Oversold Healthcare Stocks To Invest In

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

Number of Hedge Fund Holders: 37 

Molina Healthcare, Inc. (NYSE:MOH), founded in 1980 by Dr. C. David Molina, is a managed care company that provides health insurance primarily through government programs like Medicaid and Medicare. Originally a single clinic in Long Beach, California, aimed at serving low-income patients, Molina now operates in 19 states and serves over 5.1 million members.

Molina Healthcare (NYSE: MOH) emerges as one of the best oversold stocks with substantial growth potential. In Q3 2024, the company reported strong financial performance, with adjusted EPS of $6.01 and premium revenue of $9.7 billion, reaffirming its 2024 guidance of approximately $38 billion in premium revenue and at least $23.50 in EPS, representing 17% and 13% year-over-year growth, respectively. Key metrics included a Q3 adjusted pre-tax margin of 4.5%, a year-to-date consolidated MCR of 88.8%, and an adjusted G&A ratio of 6.4%.

Supported by a solid balance sheet with a 35% debt-to-capital ratio and debt at 1.4 times trailing 12-month EBITDA, Molina Healthcare, Inc. (NYSE:MOH) is well-positioned for long-term growth across Medicaid, Medicare, and Marketplace segments. Strategic initiatives, including retaining the Florida contract, potential expansion in Georgia, and competitive rate filings for 2025, further bolster the company’s growth outlook. The company anticipates $1 billion in incremental premium revenue by 2027 from its Michigan contract and $400 million within three years from its Massachusetts contract.

Additionally, back in June, Molina Healthcare Inc. (NYSE:MOH) acquired ConnectiCare, a top Connecticut health plan, as part of its strategic growth objectives. With the addition of a well-known brand and a statewide provider network, this acquisition, which covers 140,000 members across Marketplace, Medicare, and certain commercial programs, improves Molina’s standing.

As of Q3 2024, 37 hedge funds in the Insider Monkey database held shares in the company. The largest stakeholder in the company was Durable Capital Partners with shares worth $361.4 million.