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.

While we acknowledge the risk and potential of MOH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MOH and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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