15 Small-Cap Healthcare Stocks Hedge Funds Are Buying

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

No. of Hedge Fund Holders: 48

Market Capitalization: $16.87 Billion

Analyst Upside: 17.23%

Molina Healthcare, Inc. (NYSE:MOH) is a Fortune-500 healthcare services company operating under the Medicaid and Medicare programs. The company also engages through the state insurance marketplaces. Serving over 5.8 million customers across the U.S., Molina operates through four segments, including Medicaid, Medicare, Marketplace, and Other.

Molina Healthcare, Inc. (NYSE:MOH) posted strong results during the first quarter of 2025. The company reported a total revenue of $11.15 billion, beating estimates by $333.22 million. The adjusted earnings came in at $6.08 per share, surpassing estimates by $0.12. This growth was fueled by new contract wins, rate increases, and acquisitions. Molina’s medical care ratio was reported at around 89.2%, representing robust medical cost management. At the same time, the general and administrative expense ratio improved, with a 6.8% reduction. The company has reaffirmed its full-year 2025 guidance, with premium revenue projected to reach nearly $42 billion, reflecting a 9% increase from 2024. The adjusted EPS is expected to be around $24.50, indicating 8% growth.

On April 9, Ann Hynes from Mizuho increased the price target on MOH from $376 to $400, maintaining an Outperform rating on the shares. The analyst remains optimistic following a survey that suggests higher inpatient and outpatient growth trends during Q1.