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Clover Health Investments, Corp. (CLOV) Hit a 52 Week High, Can the Run Continue?

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Have you been paying attention to shares of Clover Health Investments, Corp. (CLOV - Free Report) ? Shares have been on the move with the stock up 15.6% over the past month. The stock hit a new 52-week high of $2.03 in the previous session. Clover Health Investments, Corp. has gained 110.1% since the start of the year compared to the 8.2% move for the Zacks Medical sector and the -12% return for the Zacks Medical Info Systems industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 5, 2024, Clover Health Investments reported EPS of $0.01 versus consensus estimate of $-0.04.

For the current fiscal year, Clover Health Investments is expected to post earnings of -$0.13 per share on $1.4 billion in revenues. This represents a 68.29% change in EPS on a -31.32% change in revenues. For the next fiscal year, the company is expected to earn -$0.12 per share on $1.47 billion in revenues. This represents a year-over-year change of 7.69% and 4.98%, respectively.

Valuation Metrics

Clover Health Investments may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Clover Health Investments has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Clover Health Investments currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Clover Health Investments passes the test. Thus, it seems as though Clover Health Investments shares could still be poised for more gains ahead.


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