Clover Health Is Down 68% In 1 Year, But Wall Street Is Predicting It'll Rise by 70%. Should You Buy It?
Because Clover Health Investments (NASDAQ: CLOV) is a health insurance company, most investors might expect it to have a relatively stable share price. But that assumption hasn't yet been proven correct. Its shares got severely punished in the bear market and are down 68% compared to a year ago.
Still, analysts on Wall Street see the stock rising by 67% in the next 12 months, and management is claiming that 2024 will see significant progress toward becoming profitable. So does that mean you should buy the stock?
Clover Health isn't a traditional insurance business. Rather than selling coverage to consumers, it sells Medicare Advantage plans to people on Medicare who want additional coverage at a low cost and a wide network of providers. It expects to make as much as $1.2 billion in revenue from its insurance plans in 2023, though it isn't profitable yet.
Source Fool.com
