10 Best Penny Stocks to Buy for 2025

6. Clover Health Investments, Corp. (NASDAQ:CLOV)

Stock Upside Potential: 46.71%

Number of Hedge Fund Holders: 12

Clover Health Investments, Corp. (NASDAQ:CLOV) is a healthcare company that provides Medicare Advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. The stock is up by more than 232% amid renewed optimism about the company’s growth prospects and the health technology sector at large.

The rally comes as investors react to the company’s impressive strides to becoming profitable. Its net loss narrowed to $0.02 a share in the third quarter from a loss of $0.09 a share a year ago. The narrower-than-expected net loss came as Clover Health Investments, Corp.’s (NASDAQ:CLOV) insurance revenue increased 9% to $322.6 million. Revenue growth was driven by strong member retention and continued intra-year growth.

It is one of the best penny stocks to buy for 2025, as management remains optimistic about future growth. Consequently, they have raised the full-year adjusted EBITDA to between $55 million and $65 million. Clover Health Investments, Corp. (NASDAQ:CLOV) is also positioned to benefit from a strategic focus on leveraging its technology platform, the Clover Assistant, offering affordable healthcare plans to America’s seniors, which should drive membership growth.

Additionally, the Centers for Medicare and Medicaid Services (CMS) has upgraded the Star ratings of its Medicare Advantage (MA) plans for 2025, which is a significant factor influencing CMS payments for 2026. Clover Health’s emphasis on enhancing healthcare outcomes and its impressive performance in a number of crucial areas are the reasons for this upgrade.

A multi-year contract with The Iowa Clinic, P.C. signals a major Midwest expansion for its subsidiary, Counterpart Health. Clover Health Investments, Corp.’s (NASDAQ:CLOV) AI-powered software platform, Counterpart Assistant, will be made available to the clinic’s healthcare providers through this partnership.