Molina Healthcare (MOH) shares plummeted over 25% after issuing bleak guidance for fiscal 2026, citing a medical cost ratio that will keep earnings at $5 per share, compared to the previous estimate of $14. The stock is down nearly 35% year-to-date. Despite investor Michael Burry’s confidence in MOH, uncertainties loom due to the firm’s exit from Medicare Advantage plans in 2027. Options data suggests further downside potential, with contracts indicating a possible 20% decline. Wall Street analysts, however, see potential for a 40% rally in the next 12 months, with a consensus “Hold” rating and a target of $178 per share.

Read more at Barchart: Should You Buy the Dip in This Oversold Michael Burry Stock?