Is Molina Healthcare Stock Underperforming the Dow?

With a market cap of $8.7 billion, Molina Healthcare, Inc. (MOH) delivers managed healthcare services to low-income individuals and families. It serves members through Medicaid, Medicare, and state insurance marketplace programs. 

Companies valued at less than $10 billion are generally considered "mid-cap" stocks, and Molina Healthcare fits this criterion perfectly. The company operates across four key segments: Medicaid, Medicare, Marketplace, and Other.

Shares of the Long Beach, California-based company have dropped 55.4% from its 52-week high of $359.97. Over the past three months, its shares have decreased 10.4%, underperforming the broader Dow Jones Industrials Average's ($DOWI) 5.6% rise during the same period.

Longer term, MOH stock is down 44.9% on a YTD basis, lagging behind DOWI's nearly 13% gain. Moreover, shares of the company have dipped 46.2% over the past 52 weeks, compared to DOWI’s 8.6% increase over the same time frame.

The stock has been in a bearish trend, consistently trading below its 50-day and 200-day moving averages since late May.

Shares of MOH tumbled 17.5% following its Q3 2025 results on Oct. 22 as its adjusted EPS slid to $1.84 from $6.01 due to elevated medical costs. The company disclosed that roughly half of the underperformance came from the Marketplace segment. Additionally, Molina slashed its full-year 2025 adjusted profit forecast to about $14 per share, citing continued pressure from higher-than-expected healthcare utilization, particularly in Medicare and Marketplace plans.

In comparison, rival CVS Health Corporation (CVS) has outperformed MOH stock. CVS stock has surged 75.9% YTD and 43.2% over the past 52 weeks.

Due to the stock’s underperformance, analysts remain cautious about its prospects. MOH stock has a consensus rating of “Hold” from 18 analysts in coverage, and the mean price target of $170 is a premium of 5.9% to current levels.