Molina Healthcare, Inc. : Attractive price levels

09/29/2020 | 09:53am EST

David Meurisse

long trade Target price hit

Entry price : 163.955$ | Target : 194$ | Stop-loss : 147.5$ | Potential : 18.33%

Molina Healthcare, Inc. shares have returned to important technical levels around 149.8 USD based on weekly price data. The timing seems attractive to be a buyer of this stock. Investors have an opportunity to buy the stock and target the $ 194.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
• In a short-term perspective, the company has interesting fundamentals.

Strengths

• The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 149.8 USD in weekly data.
• Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
• The company is in a robust financial situation considering its net cash and margin position.
• Considering the small differences between the analysts' various estimates, the group's business visibility is good.
• The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.37 for the 2020 fiscal year.
• Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
• Over the past year, analysts have regularly revised upwards their sales forecast for the company.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
• The stock is in a well-established, long-term rising trend above the technical support level at 149.8 USD

Weaknesses

• The group usually releases earnings worse than estimated.

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