What Happened?

Shares of healthcare insurance company Molina Healthcare (NYSE:MOH) fell 10.6% in the pre-market session after the company reported underwhelming fourth quarter results, with EPS missing Wall Street estimates and full-year EPS guidance falling significantly short. However, full-year revenue guidance slightly exceeded analysts' expectations, and revenue outperformed estimates. Overall, the results were mixed.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Molina Healthcare? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Molina Healthcare’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Molina Healthcare and indicate this news significantly impacted the market’s perception of the business.

Molina Healthcare is up 0.7% since the beginning of the year, but at $289.18 per share, it is still trading 31.1% below its 52-week high of $419.53 from March 2024. Investors who bought $1,000 worth of Molina Healthcare’s shares 5 years ago would now be looking at an investment worth $2,259.

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