History might repeat itself at Clover Health, which has seen its stock recently fall by 40%. The strong topline growth, profit improvement, and rating upgrade to 4 stars for the 2026 period place the company in the perfect position to boost market shares and enhance probable SaaS areas.
Clover Health Investments Corp is a health tech company committed to enabling accessible health care for Medicare recipients. Based in Franklin, Tennessee, and founded in 2014, Clover Health distinguishes itself from so many others by a sharp focus on technology with its proprietary software, Clover Assistant, which pulls patient data together for intelligent use by physicians to make decisions about how best to improve the health of seniors.
Clover Health primarily offers Medicare Advantage plans, such as Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO). The company generates revenue through premiums collected from these insurance plans, as well as through its non-insurance operations that specialize in managing care for Medicare beneficiaries. Clover Assistant plays an essential role in the firm’s services by providing actionable insights to healthcare providers, allowing them to identify and manage chronic diseases appropriately.
CLOV caters to a very broad customer segment, mainly individual Medicare beneficiaries – older adults who likely had been denied access to affordable health care throughout their lives. The ultimate target market is all the Medicare beneficiaries spread across the country with a special focus on underserved areas as far as Clover is concerned. Clover Health is making its mark thanks to its AI-powered Clover Assistant. The recent upgrade to a 4-star rating for its PPO plan in the payment year 2026 is a game-changer.
Not only does it unlock a 5% quality bonus from CMS, it also seals Clover’s spot as a top-tier player on the MA Plan Finder. Now, with the extra revenue from the bonus, Clover can double down further and enhance care, increase plan benefits, and push innovation through Clover Assistant – all these while attracting more members and providers into its network. Of course, the sweetness in this victory is double, considering the giants UnitedHealthcare and Humana are being downgraded in star ratings.
With these super brands losing a little luster, this is the perfect opportunity for Clover to pick up some extra market share, especially in New Jersey, where it already owns 10%. Beyond the simple act of ratcheting up health results, Clover Assistant now lays the groundwork for new SaaS agreements. With the stumbling competition, and Clover’s tech-centric approach, coupled with high and skyrocketing star ratings, CLOV is the one to watch in the MA space. Recent weakness in Clover Health, now down 40% from recent highs, may present a buying opportunity based on strong topline growth, solidifying profitability, and a healthy balance sheet. Our bull case is based on the upgrade to 4-star positioning that would see an expansion of market share by new market entry and SaaS deal wins for Clover Assistant.
Clover Health does not rank on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held CLOV at the end of the third quarter which was 9 in the previous quarter. While we acknowledge the potential of CLOV as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CLOV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
