(MENAFN- Daily Forex) Low valuations, strong returns on assets and equity, and double-digit earnings-per-share growth could drive further upside in Molina Healthcare. How healthy is the price channel?

Long Trade Idea

Enter your long position between $184.83 (a medium-term horizontal support level) and $201.89 (Friday's intra-day high).Market Index Analysis

• Molina Healthcare (MOH) is a member of the S&P 500 index.
• This index remains near record highs, but bearish trading volumes have risen.
• The Bull Bear Power Indicator of the S&P 500 index has turned bearish with a descending trendline.

Market Sentiment Analysis

Equity markets wiped over $2 trillion off their value during Friday's plunge, after President Trump stated that he would slap an additional 100% tariff on all existing tariffs. He walked back those comments over the weekend, suggesting the US and China will reach a deal before the November 1^st deadline. The government continues its shutdown, the AI bubble rages on, and investors will receive a busy week of earnings, led by major banks. Equity futures suggest a massive rally starting the week, clawing back roughly 50% of Friday's sell-off, but investors should brace for more volatility Healthcare Fundamental Analysis

Molina Healthcare is a managed care company. It focuses on health insurance coverage for lower-income households through government programs, Medicaid, and Medicare.

So, why am I bullish on MOH despite reduced full-year EPS guidance?

While Molina Healthcare faces challenges amid uncertainty concerning government policies for Medicaid and Medicare, recent comments by President Trump lifted the healthcare sector. Valuations are low, and MOH maintains a high retention rate in its top plans, confirming solid fundamentals outside government-assisted policies. Earnings visibility from hospitals improves transparency, and I am confident in its ongoing cost-control measures.

Metric	Value	Verdict
P/E Ratio	9.57	Bullish
P/B Ratio	2.29	Bullish
PEG Ratio	0.61	Bullish
Current Ratio	1.66	Bearish
ROIC-WACC Ratio	Positive	Bullish Molina Healthcare Fundamental Analysis Snapshot The price-to-earnings (P/E) ratio of 9.57 makes MOH an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 29.45. The average analyst price target for MOH is $191.79. It suggests no upside potential, but I see more gains ahead amid its defensive capabilities Healthcare Technical Analysis Today's MOH Signal Molina Healthcare Price Chart The MOH D1 chart shows price action inside a bullish price channel. It also shows price action between its descending 38.2% and 50.0% Fibonacci Retracement Fan levels. The Bull Bear Power Indicator is bullish with an ascending trendline. The average bullish trading volumes are higher than the average bearish trading volumes. MOH moved in lockstep with the S&P 500, a bullish confirmation. My Call on Molina Healthcare I am taking a short position in MOH between $184.83 and $201.89. MOH trades at low valuations in a highly overvalued market, reports a high retention rate in its top plans, and the worst Medicare and Medicaid news appears priced into the current share price. MOH Entry Level: Between $184.83 and $201.89 MOH Take Profit: Between $268.15 and $294.83 MOH Stop Loss: Between $151.95 and $166.46 Risk/Reward Ratio: 2.53 Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Ready to trade our daily stock signals ? Here is our list of the best stock brokers worth reviewing.

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