Molina Healthcare (MOH) Slid on Challenging Results and Reduced Full-Year EPS Guidance

Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund underperformed its benchmark, the MSCI World Index, in the third quarter. The largest performance contributors were consumer discretionary and information technology, at the sector level, while industrials and consumer staples detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its third-quarter 2025 investor letter, Oakmark Global Fund highlighted stocks such as Molina Healthcare, Inc. (NYSE:MOH). Molina Healthcare, Inc. (NYSE:MOH) offers managed healthcare services that operate through Medicaid, Medicare, Marketplace, and Other segments. The one-month return of Molina Healthcare, Inc. (NYSE:MOH) was 10.77%, and its shares lost 39.31% of their value over the last 52 weeks. On October 9, 2025, Molina Healthcare, Inc. (NYSE:MOH) stock closed at $200.36 per share, with a market capitalization of $10.86 billion.

Oakmark Global Fund stated the following regarding Molina Healthcare, Inc. (NYSE:MOH) in its third quarter 2025 investor letter:

"Molina Healthcare, Inc. (NYSE:MOH) was the top detractor during the quarter. The U.S.-headquartered managed care company’s stock price declined after it reported challenging second-quarter results and reduced full year earnings per share guidance. This negative revision was caused by cost pressure in the company’s Medicaid and Marketplace businesses. While today’s valuation seems to imply that the headwinds impacting Molina are structural, we believe they’re attributable to temporary factors and expect a meaningful earnings recovery in the coming years."

Molina Healthcare, Inc. (NYSE:MOH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Molina Healthcare, Inc. (NYSE:MOH) at the end of the second quarter, up from 38 in the previous quarter.  In the second quarter of 2025, Molina Healthcare, Inc. (NYSE:MOH) generated approximately $11 billion in total revenue and $10.9 billion of premium revenue with adjusted EPS of $5.48. While we acknowledge the potential of Molina Healthcare, Inc. (NYSE:MOH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Molina Healthcare, Inc. (NYSE:MOH) and shared the list of oversold fundamentally strong stocks to buy. Oakmark Global Fund added Molina Healthcare, Inc. (NYSE:MOH) to its portfolio in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.