Is Molina Healthcare (MOH) The Best Healthcare Stock to Buy Now?

We just covered Forget AI: Legendary Value Investor Seth Klarman Is Buying These 10 Value Stocks in 2026. Molina Healthcare (NYSE:MOH) ranks #8 (see Seth Klarman Is Buying These 5 Value Stocks in 2026).

Baupost’s Stake: $84,460,000

Molina Healthcare (NYSE:MOH) is a managed care company focused on government-sponsored health programs — Medicaid, Medicare, and the ACA Marketplace. Its moat lies in long-standing state government contracts, deep expertise serving low-income populations, and an infrastructure built specifically around Medicaid managed care.

The stock has been hammered amid Medicaid rate adjustments and elevated medical costs. But bulls argue this is a cyclical trough, not a structural problem. Medicaid managed care has a well-documented cycle — costs overshoot state reimbursement rates, companies take losses, states adjust rates higher, and margins recover. Molina Healthcare’s (NYSE:MOH) CEO has explicitly called 2026 the margin trough.

Q1 2026 provided the first hard evidence of recovery. Adjusted EPS came in at $2.35, crushing the $1.29 consensus, sending the stock up 15% in a day. Bank of America issued a rare double upgrade to Buy, lifting its price target to $250 and projecting EPS could reach $30 by 2029 — nearly twice the Street consensus of $17.32.

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