Clover Health (CLOV) Achieves Profitability as Medicare Advantage Membership Surges
Clover Health Investments, Corp. (NASDAQ:CLOV) is one of the best healthcare stocks. It is a Medicare Advantage insurer that leverages its AI-powered Clover Assistant platform to improve health outcomes, particularly for chronic conditions such as congestive heart failure. Its PPO-focused model offers broader network access compared to typical HMO plans, aiming to reduce hospitalizations and readmissions through advanced analytics and clinical decision support.
In Q2 2025, Clover Health Investments, Corp. (NASDAQ:CLOV) reported a 32% year-over-year increase in Medicare Advantage membership, reaching over 106,000 members. Insurance revenue grew 34% to about $470 million, with adjusted EBITDA and net income both at roughly $17 million, maintaining profitability despite elevated sector-wide medical costs.
Clover Assistant has demonstrated measurable impact, including an 18% reduction in hospitalizations and 25% fewer 30-day readmissions for heart failure patients under its care model. The business plans to use these results as a competitive differentiator and is expanding the platform to other risk-bearing organizations.
Photo by National Cancer Institute on Unsplash
The corporation also improved its Medicare star ratings, with PPO plans projected to rise from 3.5 stars in 2025 to 4.0 stars in 2026, boosting reimbursement potential and market competitiveness. While facing rising costs from supplemental benefits and regulatory changes, Clover Health Investments, Corp. (NASDAQ:CLOV) is pursuing cost-efficiency measures such as renegotiating partnerships and expects these efforts, along with regulatory adjustments, to help ease pressures by 2026.
While we acknowledge the potential of CLOV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Which Is the Better Choice for Investing $10,000 Right Now: Palantir or XRP (Ripple)?
Key Points Palantir should have tremendous growth prospects with its AI-powered software. XRP could soar if investors are allowed to buy cryptocurrencies in their 401(k) plans. Which asset is the better pick depends on your risk tolerance and investment horizon. 10 stocks we like better than Palantir Technologies › What's the best-performing S&P 500 stock so far in 2025? There's no contest. Palantir Technologies (NASDAQ: PLTR) has trounced all other contenders with a year-to-date gain of over 140%. There isn't an equivalent of the S&P 500 for cryptocurrencies. However, among digital currencies with a market cap of at least $100 billion, XRP (CRYPTO: XRP) (sometimes referred to as Ripple, which is the name of the company that popularized the cryptocurrency) is the clear winner with a year-to-date gain of around 60%. Stocks and cryptocurrencies are vastly different, yet they vie for the same pool of investors' hard-earned cash. Which is the better choice for investing $10,000 right now: Palantir or XRP? The case for Palantir Palantir describes what it does as making "products for human-driven analysis of real-world data." However, those products rely heavily on artificial intelligence (AI), including machine learning and generative AI. The company's initial focus was on providing software to governments (particularly intelligence and defense agencies), but it has expanded into commercial applications as well. Both of Palantir's core markets are booming. The company's U.S. commercial revenue skyrocketed 93% year over year in the second quarter of 2025 to $306 million. Its U.S. government revenue soared 53% year over year to $426 million. Palantir's overall revenue jumped 48% to a little over $1 billion. CEO Alex Karp wrote to shareholders recently that this growth rate is "nearly without precedent or comparison" for a business of Palantir's scale. He also stated, "This is still only the beginning of something much larger and, we believe, even more significant." He could be right. IDC projects that the global AI platform software market will grow by a compound annual growth rate of 40.6% through 2028 to $153 billion. Palantir outshines every software maker in the world with at least $1 billion in trailing-12-month revenue on the "Rule of 40" metric. This number combines a company's revenue growth and its profit margin. Palantir's "Rule of 40" score is 94%. Among the 25 global companies with the largest market caps, only Nvidia has a higher score. The case for XRP David Schwartz, Jed McCaleb, and Arthur Britto set out in 2011 to develop a digital asset that was specifically designed for payments and would be better than Bitcoin. They wound up creating the XRP Ledger, which uses XRP as its native currency. The three engineers launched a company to expand the blockchain platform they developed. After a couple of name changes, this company became Ripple. Today, XRP ranks as the third-largest cryptocurrency in the world with a market cap of over $180 billion. It's traded on more than 100 markets and exchanges. Roughly 59.3 billion XRP tokens are in circulation, with a total supply of nearly 100 billion tokens. XRP's growth prospects hinge on demand for the cryptocurrency outstripping supply. That hasn't been a problem so far -- and might not be going forward, either. For one thing, its developers' goal of building a better version of Bitcoin appears to have been achieved. XRP takes only three to five seconds to settle a payment, compared with 500 seconds for Bitcoin. It also boasts a much lower cost per transaction, is much more scalable, and consumes much less energy than Bitcoin. Demand could also soar thanks to President Trump's recently signed executive order directing the U.S. government to take steps to allow 401(k) plan investments in alternative assets, including cryptocurrencies. In addition, several investment management companies are scrambling to launch exchange-traded funds (ETFs) that own XRP. And the verdict is... Which of these assets is the better alternative for investing $10,000 right now? I think it depends on your risk tolerance and investment horizon. Both XRP and Palantir are risky. Like any cryptocurrency, XRP is only worth what investors think it's worth. Some would argue that it has no intrinsic value (although that's debatable). Palantir's risk level primarily comes from its valuation: The stock trades at 294 times forward earnings -- a nosebleed level. However, because of the company's growth prospects, I'd say it's less risky than XRP overall. That said, it wouldn't surprise me if XRP outperforms Palantir over the short term. The creation of new ETFs focusing on the cryptocurrency and the likelihood that investors will soon be able to buy those ETFs and perhaps buy XRP directly in their 401(k) accounts could provide major catalysts. What about over the long term? I think the nod goes to Palantir. The potential for AI to transform governments and businesses is massive. Still, other stocks offer better risk-reward propositions than Palantir, in my view. Should you buy stock in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Nvidia, Palantir Technologies, and XRP. The Motley Fool has a disclosure policy. Which Is the Better Choice for Investing $10,000 Right Now: Palantir or XRP (Ripple)? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
Is O'Reilly Automotive Stock a Buy?
Key Points O'Reilly is a fast-growing company and looks primed for further growth. From a valuation standpoint, some investors might consider it too expensive. 10 stocks we like better than O'Reilly Automotive › O'Reilly Automotive (NASDAQ: ORLY), the parent company of O'Reilly Auto Parts stores, has been on a tear, with shares up more than 230% in the last five years. In June, the stock did a massive 15-for-1 split and has risen more than 10% since. So, is O'Reilly a buy? If you're a growth investor, it looks like a very promising pick, but if you're a value investor, you might want to look elsewhere. More growth in the tank Shares of O'Reilly have been going up because the company has been growing rapidly. It's opening new stores at a fast rate, and expects to open a net total of 200 to 210 new stores in 2025, for a total of about 6,500 stores. That already makes it one of the largest auto parts stores by number of locations, just behind industry leader Autozone's (NYSE: AZO) 7,200. However, O'Reilly still has plenty of room to grow. While it has a large presence in the U.S. Midwest and South, it's underrepresented in the Northeast, with fewer than 100 stores in New York or Pennsylvania, and no stores at all in Delaware, Maryland, or New Jersey. Recent economic trends seem likely to boost O'Reilly's growth potential even further. The stock looks like a good buy from a growth standpoint. Priced at a premium O'Reilly's incredible share price increase hasn't just beaten the market, it's also outstripped its fundamentals. The stock price has risen much faster than the company's rapidly growing revenue and profits. That means O'Reilly stock is much pricier now than it has been in the past. It's trading at 34 times forward earnings, compared to 25 times forward earnings two years ago. Value investors might think that's too steep a price to pay. But several of O'Reilly's peers, including Autozone, have seen similar valuation increases, and you can always expect to pay more for an outperforming stock. O'Reilly looks like a buy for growth-focused investors. Should you buy stock in O'Reilly Automotive right now? Before you buy stock in O'Reilly Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and O'Reilly Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 John Bromels has positions in O'Reilly Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is O'Reilly Automotive Stock a Buy? was originally published by The Motley Fool Sign in to access your portfolio
Forbes
15 minutes ago
- Forbes
Buy Nvidia Stock Ahead of Earnings?
Nvidia (NASDAQ:NVDA) is expected to announce its Q2 2026 earnings at the end of August (January fiscal year). Analysts anticipate earnings of $1 per share, an increase from $0.68 in the same quarter last year, and revenues are projected to grow by over 50% year-over-year to $45.60 billion. This growth is likely to be fueled by the sustained strong demand for the company's GPU chips utilized in generative AI applications. Nvidia has been increasing large-scale production of its latest Blackwell AI supercomputers. These new chips, with their cutting-edge AI functionalities and premium pricing, may assist in driving revenue growth during Q2 FY'26, while also enhancing margins. Historically, NVDA stock has tended to outperform following earnings releases, having risen 60% of the time with a median one-day increase of 4.5% and a maximum observed increase of 24%. The company holds a current market capitalization of $4.4 trillion. Over the past twelve months, revenue totaled $149 billion, and it was operationally profitable, achieving $86 billion in operating profits and a net income of $77 billion. Although much will depend on how results compare to consensus expectations, recognizing historical trends may improve your chances if you are an event-driven trader. Should you Buy Or Fear Nvidia stock? For event-driven traders, historical trends might provide an advantage, whether by positioning prior to earnings or responding to post-release movements. That said, if you are looking for upside with less volatility than that of individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks NVIDIA's Historical Odds of Positive Post-Earnings Return Some insights on one-day (1D) post-earnings returns: Additional data for observed 5-Day (5D) and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below. Correlation Between 1D, 5D, and 21D Historical Returns A relatively less risky strategy (although not useful if the correlation is low) is to assess the relationship between short-term and medium-term returns post earnings, identify a pair with the highest correlation, and execute the suitable trade. For instance, if 1D and 5D show the strongest correlation, a trader could position themselves 'long' for the upcoming 5 days if the 1D post-earnings return is positive. Here is some correlation data based on a 5-year and a 3-year (more recent) history. Note that the correlation 1D_5D refers to the association between 1D post-earnings returns and subsequent 5D returns. Is There Any Correlation With Peer Earnings? Occasionally, peer performance can impact post-earnings stock reactions. Indeed, the pricing-in may start before the earnings announcements are made. Here is some historical data illustrating the past post-earnings performance of NVIDIA stock compared with the stock performance of peers that reported earnings immediately before NVIDIA. For an equitable comparison, peer stock returns also reflect post-earnings one-day (1D) returns. Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (the combination of all three, the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors. Additionally, if you prefer upside with a smoother ride compared to an individual stock like NVIDIA, consider the High Quality portfolio, which has outperformed the S&P and recorded >91% returns since its inception.
