MRNA - Molina to join S&P 500 bringing valuation and financials into focus

Medicaid-focused health insurer, Molina Healthcare (NYSE:MOH), is expected to debut in the S&P 500 before the trading opens on March 02, it was announced last Friday. Long Beach, California-based company will replace IHS Markit Ltd (NYSE:INFO), which is on track to complete its buyout deal with S&P Global (NYSE:SPGI) on Monday. As shown in this 12-month share performance graph, Molina (MOH) has roughly traded in line with its larger peers in the Medicaid space, namely Centene (NYSE:CNC) and Anthem (NYSE:ANTM), which have already made their way into the index. However, the inclusion in the S&P 500 could drive the valuation of Molina (MOH) higher as shares of companies joining the index typically surge as their shares are added to index funds tracking the benchmark. Despite its strong financials, Molina’s (MOH) premium valuation will also come into focus as actively managed funds benchmarked against the S&P 500 weigh buying shares of the new

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Molina to join S&P 500 bringing valuation and financials into focus