Why I Believe that CLOV Stock Analysts are Wrong

"Is the CLOV stock a good buy right now?". This analysis uses 2 valuation methods to determine a CLOV Stock Forecast, which can help us answer this popular question. As you may know, Clover health investments, corp. (NASDAQ: CLOV) is one of the most well-known retail stocks in the Healthcare industry. This analysis will examine CLOV's key financial metrics and ratios to determine a price prediction for its stock. Keep in mind that this stock forecast takes several assumptions into account, which may hinder the accuracy of the price target achieved. I'll share my CLOV stock price prediction, then show you the approach and assumptions that I used to calculate my CLOV stock forecast. Stock forecasting is hard, I don't know what the future will hold, and neither do Wall Street Analysts. If either of us could, we would be extremely wealthy and never have to work again. What I can say, however, is that we can use available data to determine a reasonable CLOV stock forecast to make us more informed and knowledgeable about our potential investments. CLOV Stock Forecast for 2025 is $2.57 Per Share The Clover health stock price prediction of $2.57 was derived from 2 main valuation methods (which are averaged for the final price target you see above). I'll dive into the approach to show you how I determined how I “predicted” a stock price of $2.57 for CLOV. CLOV Financial Growth Metrics CLOV Comparable Companies Analysis Clover Stock Forecast Using PE Ratio and EPS This section of the analysis will focus on CLOV's forward P/E and EPS ratio estimates in order to arrive at a CLOV stock forecast. CLOV's forward Earnings Per Share have been estimated to be -3.83. Furthermore, CLOV's forward Price to Earnings Ratio has been forecasted to reach -0.64. By having both CLOV's forward P/E and EPS, we can multiply them together to reach a CLOV stock forecast of $2.45 per share There are other ways to predict the price for CLOV but I would argue that P/E, EPS, and Earnings Growth are the most commonly used financial metrics by analysts and investors. This is why I used them to forecast CLOV's stock price. CLOV Stock Forecast for 2023 Using Comparable Analysis Who are CLOV's Competitors? In order to undergo a comparable analysis, we need to outline CLOV's main competitors. These competitors need to have; a stock, valid financial ratios, operations similar to CLOV, and a market cap similar to CLOV (if possible). Keeping this in mind, here are CLOV's closest competitors: PDCO, ALKS, ATRC, NUVA, PRVA, SANA, SWTX, AHCO, OLK, MMSI Using a Comparable Analysis to Determine a CLOV Price Forecast Price to Book (P/B): CLOV's current P/B ratio is 2.67, compared to the average P/B ratio of CLOV's peers being 3.29. This implies that CLOV is undervalued and their share price should change by a factor of 23.49% to be at fair value (based on CLOV's P/B compared to the P/B of their peers). Price to Earnings (P/E): CLOV stock P/E ratio is currently -2.12, compared to the average P/E ratio of CLOV's peers being -1.52. This implies that CLOV is overvalued and their share price should change by a factor of -28.59% to be at fair value (based on CLOV's P/E compared to the P/E of their peers). Overall, CLOV stock is overvalued and needs to experience a change in the stock price of (an average of) -2.55% to be considered “at fair value”. Applying this percentage change to CLOV's current price of $2.76 implies a forecasted price of $2.69 Are the CLOV Analyst Ratings in Agreeance With Our Conclusion? Analyst Ratings have provided a relatively strong indicator of future price movement, which is why they are used to (hopefully) support our CLOV stock forecast. There are a total of 14 analyst ratings for CLOV, which are distributed as follows: 6 Buys 4 Holds 4 Sells As you may have been able to tell 42.86% of analysts have given the CLOV stock a 'buy" rating. Based on the current CLOV analyst ratings there seems to be an overall bullish sentiment, with analyst "buy" ratings forming a minority of total ratings given. However, despite the "buy" rating being a minority, it is a larger minority than the amount of "sell" ratings.  CLOV Stock Forecast and Conclusion Let's end this analysis by using the information accumulated to answer the question that was posed at the very start of this analysis "Is the CLOV stock a buy?" Based on the overall CLOV stock forecast of $2.57 per share (derived from P/E & EPS, and comparable valuations), the current price of CLOV is $2.76, and the slightly bullish analyst sentiment for the CLOV stock, I would disagree with the analysts and say CLOV is a sell (or potentially a hold). Let me know what you think, happy to dive into other aspects of CLOV to help you make an informed investment decision.

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Why I Believe that CLOV Stock Analysts are Wrong

Jul 29, 2022

bearish

general Analysis

[4 min Read]

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Photo by: Owen Beard

"Is the CLOV stock a good buy right now?". This analysis uses 2 valuation methods to determine a CLOV Stock Forecast, which can help us answer this popular question.

As you may know, Clover health investments, corp. (NASDAQ: CLOV) is one of the most well-known retail stocks in the Healthcare industry. This analysis will examine CLOV's key financial metrics and ratios to determine a price prediction for its stock. Keep in mind that this stock forecast takes several assumptions into account, which may hinder the accuracy of the price target achieved. I'll share my CLOV stock price prediction, then show you the approach and assumptions that I used to calculate my CLOV stock forecast.

Stock forecasting is hard, I don't know what the future will hold, and neither do Wall Street Analysts. If either of us could, we would be extremely wealthy and never have to work again. What I can say, however, is that we can use available data to determine a reasonable CLOV stock forecast to make us more informed and knowledgeable about our potential investments.

CLOV Stock Forecast for 2025 is $2.57 Per Share

The Clover health stock price prediction of $2.57 was derived from 2 main valuation methods (which are averaged for the final price target you see above). I'll dive into the approach to show you how I determined how I “predicted” a stock price of $2.57 for CLOV.

  1. CLOV Financial Growth Metrics
  2. CLOV Comparable Companies Analysis

Clover Stock Forecast Using PE Ratio and EPS

This section of the analysis will focus on CLOV's forward P/E and EPS ratio estimates in order to arrive at a CLOV stock forecast.

CLOV's forward Earnings Per Share have been estimated to be -3.83. Furthermore, CLOV's forward Price to Earnings Ratio has been forecasted to reach -0.64. By having both CLOV's forward P/E and EPS, we can multiply them together to reach a CLOV stock forecast of $2.45 per share

There are other ways to predict the price for CLOV but I would argue that P/E, EPS, and Earnings Growth are the most commonly used financial metrics by analysts and investors. This is why I used them to forecast CLOV's stock price.

CLOV Stock Forecast for 2023 Using Comparable Analysis

Who are CLOV's Competitors?

In order to undergo a comparable analysis, we need to outline CLOV's main competitors. These competitors need to have; a stock, valid financial ratios, operations similar to CLOV, and a market cap similar to CLOV (if possible).

Keeping this in mind, here are CLOV's closest competitors:

PDCO, ALKS, ATRC, NUVA, PRVA, SANA, SWTX, AHCO, OLK, MMSI

Using a Comparable Analysis to Determine a CLOV Price Forecast

  1. Price to Book (P/B): CLOV's current P/B ratio is 2.67, compared to the average P/B ratio of CLOV's peers being 3.29. This implies that CLOV is undervalued and their share price should change by a factor of 23.49% to be at fair value (based on CLOV's P/B compared to the P/B of their peers).
  2. Price to Earnings (P/E): CLOV stock P/E ratio is currently -2.12, compared to the average P/E ratio of CLOV's peers being -1.52. This implies that CLOV is overvalued and their share price should change by a factor of -28.59% to be at fair value (based on CLOV's P/E compared to the P/E of their peers).

Overall, CLOV stock is overvalued and needs to experience a change in the stock price of (an average of) -2.55% to be considered “at fair value”. Applying this percentage change to CLOV's current price of $2.76 implies a forecasted price of $2.69

Are the CLOV Analyst Ratings in Agreeance With Our Conclusion?

Analyst Ratings have provided a relatively strong indicator of future price movement, which is why they are used to (hopefully) support our CLOV stock forecast. There are a total of 14 analyst ratings for CLOV, which are distributed as follows:

6 Buys

4 Holds

4 Sells

As you may have been able to tell 42.86% of analysts have given the CLOV stock a 'buy" rating. Based on the current CLOV analyst ratings there seems to be an overall bullish sentiment, with analyst "buy" ratings forming a minority of total ratings given. However, despite the "buy" rating being a minority, it is a larger minority than the amount of "sell" ratings.

CLOV Stock Forecast and Conclusion

Let's end this analysis by using the information accumulated to answer the question that was posed at the very start of this analysis "Is the CLOV stock a buy?"

Based on the overall CLOV stock forecast of $2.57 per share (derived from P/E & EPS, and comparable valuations), the current price of CLOV is $2.76, and the slightly bullish analyst sentiment for the CLOV stock, I would disagree with the analysts and say CLOV is a sell (or potentially a hold).

Let me know what you think, happy to dive into other aspects of CLOV to help you make an informed investment decision.

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CLOV

Clover Health Investments, Corp.

3.18

0.04
1.27%

Return

-14.80%
Change % Since Posting
-0.41
Change Since Posting
2.77
Price When Posted

Metrics

2.57
Target Price
8/ 10
Confidence
6-12 Months
Timeframe
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News
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