Molina Healthcare: A Bearish Outlook Amid Regulatory Uncertainty and Declining Medicaid Enrollment

Molina Healthcare faces escalating operational and financial pressures due to Medicaid enrollment declines and rising costs, leading to a Zacks Rank #5 (Strong Sell) rating. The stock has underperformed the market over the past year, hitting a 52-week low last month, and has consistently missed earnings estimates, with a trailing four-quarter average earnings miss of -15.8%. Negative earnings estimate revisions and a downtrend in stock price make it a compelling short opportunity.