MOH

Molina Healthcare (MOH) reported Q3 2026 earnings of $0.89 per share, beating consensus estimates of $0.72, with revenues of $11.08 billion. Despite the earnings beat, the company received a Zacks Rank #4 (Sell) rating due to unfavorable estimate revision trends. The stock has outperformed the S&P 500 by 13.9% year-to-date, but analysts expect underperformance in the near term.

Molina Healthcare reported Q3 2026 revenue of $11.08 billion, down 3.4% year-over-year but beating consensus estimates by 1.42%. EPS of $0.89 significantly exceeded the $0.72 estimate by 23.61%, though it declined from $1.84 in the prior year.

Key metrics showed mixed results with Medicaid membership declining and Marketplace premium revenue dropping 46.4% year-over-year. The stock carries a Zacks Rank #4 (Sell) rating.

Molina Healthcare is projected to report a 60.9% earnings decline in Q3 2026 with revenues falling 4.8%. The company faces multiple headwinds including a 12.7% membership decline (63% drop in Marketplace enrollment), rising medical care ratio to 93%, and falling premium revenues and investment income. The stock has a negative Earnings ESP of -3.30% and Zacks Rank #4 (Sell), making an earnings beat unlikely.

Oscar Health (OSCR) is positioned as the stronger investment compared to Molina Healthcare (MOH), driven by robust 46% membership growth, 70% revenue increase, a 20% revenue CAGR target through 2027, and a lower valuation multiple. Molina faces headwinds from rising medical costs, enrollment challenges, and portfolio restructuring, with a projected 2027 exit from its MAPD business and $1 billion marketplace premium reduction.

Molina Healthcare is expected to report a significant year-over-year earnings decline of 60.9% to $0.72 per share for Q3 2026, with revenues down 4.8% to $10.93 billion. The stock carries a Zacks Rank #4 (Sell) with a negative Earnings ESP of -3.30%, making it unlikely to beat consensus estimates. While the company has beaten estimates in 2 of the last 4 quarters, current analyst sentiment has turned bearish with recent estimate revisions.

Centene (CNC) and Molina Healthcare (MOH) are compared as major players in U.S. managed care with significant Medicaid exposure. Centene benefits from diversified operations across Medicaid, Medicare, and Marketplace plans, improving margins, and strong financial position with lower leverage.

Molina faces near-term profitability pressures from reimbursement challenges and Marketplace headwinds, though its expanding Medicaid contracts and Medicare Duals strategy offer long-term growth. Analysts favor Centene for near-term upside based on stronger earnings estimates, valuation, and recent stock performance.

Centene Corporation (CNC) is set to report Q3 2026 earnings on Oct. 27 with projected EPS of 7 cents and revenues of $47.06B, both declining year-over-year. While the company benefits from improving Medicaid margins and Marketplace profitability, it faces headwinds from shrinking commercial and Medicaid memberships.

The stock has rallied 70.7% YTD but trades at elevated valuations relative to historical levels. Existing investors may hold positions while new investors should await better entry points.

UnitedHealth Group reported Q3 adjusted earnings of $4.69 per share, beating estimates by 13.9% with a 60.6% year-over-year increase. The company raised its 2026 EPS outlook to at least $20.50, driven by improved margins and lower medical costs.

However, membership declined to 48.3 million from 50.1 million, raising questions about long-term sustainability. Optum also showed strong recovery with margins expanding to 5.6%. The stock carries a Zacks Rank #2 (Buy) rating with valuation below historical medians.

Oscar Health (OSCR) has surged 130% year-to-date driven by ACA marketplace expansion and plans to enter 150+ metro areas by 2027. However, the stock trades at a premium 4.94 price-to-book ratio versus the industry average of 2.64, and long-term profitability depends on disciplined underwriting and cost management rather than favorable policy conditions alone. Concentration risk from ACA exposure and potential subsidy policy changes pose headwinds.

UnitedHealth Group is expected to report Q3 2026 earnings on October 13, 2026, with projected EPS growth of 41.1% to $4.12 per share, despite a 1.6% revenue decline to $111.38 billion. The company faces headwinds from declining memberships across commercial, Medicare Advantage, and Medicaid segments, but improved medical cost management and operational restructuring are expected to support margin expansion. UnitedHealth trades below its historical valuation median at 17.15X forward earnings, positioning it for potential recovery.

Oscar Health (OSCR) trades at a premium valuation of 4.65x book value but has gained 142.5% year-to-date, driven by strong membership growth to 2.96 million, 70% revenue surge to $4.88 billion in Q2, and improved profitability. The company targets 20% revenue CAGR through 2027 and 5% operating margin next year, supported by its technology-driven platform and expansion into 150+ new metropolitan areas. Analysts maintain optimistic sentiment with upward earnings estimate revisions.