These Stocks Are Outperforming the S&P 500

Molina Healthcare, MMA Capital have had strong performances over the past several years

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Alberto Abaterusso
Jun 13, 2019
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The following stocks have outperformed the S&P 500 Index over the past several years. The benchmark for the U.S. stock market increased 2.4% over the past month, 14.9% so far this year, 3.8% over the last year and 39% over the past three years.

What’s more, these stocks have a price-earnings ratio of less than 15, a price-book ratio of less than 1 and a price-sales ratio lower than 1.5, increasing the likelihood of finding a security that is undervalued by the market.

Molina Healthcare Inc. (

MOH, Financial) has climbed 15% over the past month, 27.3% so far this year, 53.7% over the last 52 weeks and 195.8% over the past three years through June 12.

The Long Beach, California-based health care plans company was trading around $147.91 per share at close on Wednesday for a market capitalization of $9.26 billion. The stock has a price-earnings ratio of 12.40 versus the industry median of 19.79 and a price-sales ratio of 0.54 compared to the industry median of 0.73.

Molina Healthcare doesn’t pay a dividend.

The Peter Lynch chart suggests the stock is undervalued.

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Wall Street issued an overweight recommendation rating for shares of Molina Healthcare with an average target price of $161.29, which represents 9% upside from the closing price on Wednesday. The overweight recommendation rating means the stock is expected to continue outperforming the market over the next 12 months.

GuruFocus assigned a financial strength rating of 7 out of 10 and a profitability and growth rating of 6 out of 10.

MMA Capital Holdings Inc. (

MMAC, Financial) has gained 7.8% over the past month, 37% year to date, 28.5% over the last 52 weeks and 97.3% over the past three years through June 12.

Shares of the Baltimore-based debt investment company closed at $34.50 on Wednesday for a market capitalization of $203.01 million. The company acquires debt issued by renewable energy infrastructure and real estate companies. The stock has a price-earnings ratio of 4.78 versus an industry median of 12.36 and a price-book ratio of 0.93 compared to the industry median of 1.11.

MMA Capital doesn’t pay a dividend.

The Peter Lynch chart suggests the stock is cheap.

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Additionally, GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability and growth rating of 3 out of 10.

Disclosure: I have no positions in any securities mentioned.

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