We recently published an article titled Jim Cramer’s Latest Lightning Round: 12 Stocks to Watch. In this article, we’ll take a look at where Clover Health Investments, Inc. (NASDAQ:CLOV) stands compared to other stocks discussed by Jim Cramer during his latest light round.
On Tuesday, Mad Money host Jim Cramer shared his thoughts on recent market volatility and offered advice to investors regarding earnings reports. He cautioned against trading solely on the immediate stock reaction following an earnings release, as many of these moves may not be justified.
“The absurd earnings season has arrived. It didn’t take long, did it? People are already doing stupid things. And you know what? I want to make sure you don’t make the same mistake. I have to point this out to you.”
Mr. Kramer emphasized his mission to lead individuals to become more thoughtful investors rather than impulsive traders. He noted that the Dow Jones Industrial Average fell 325 points, the S&P 500 fell 0.76%, and the Nasdaq Composite Index fell 1.01%.
Kramer described this phenomenon as part of what he calls a quarterly repricing process, or year-end. He explained that most stocks typically tend to move in line with the S&P 500 unless a significant event changes the market. Absent such events, stock movements are often influenced by external factors that have little connection to a company’s actual future performance. He further clarified his point of view, saying:
“Now, let me make one thing clear. I’m not saying everyone’s stupid. What I’m saying is that people are looking for benchmarks that we accept for revenue. But in the first few minutes of a trade, there are clearly ignored actions based on who knows what. That’s never an important indicator. It’s not homework.”
Ultimately, Cramer explained that this chaotic trading behavior, driven by a flurry of parsed headlines during earnings season, is a clumsy way for Wall Street to reassess a stock’s value relative to its peers. did. While he acknowledged that this is a critical time for stocks to potentially decouple from the S&P 500, he expressed relief that this type of disorderly trading only happens four times a year.
Mr. Kramer concluded his thoughts by emphasizing:
“However, you shouldn’t get involved in this process if you’re not an expert. There are a lot of people playing around with so much money, and you’re not an expert who’s paying people a lot of money to figure this out.” Let them fight to determine the price. For a normal investor like you, trying to trade the first move after earnings is like clockwork. It’s just an easy way to lose money four times over.”
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our methodology
In this article, we have compiled a list of the 12 stocks discussed by Mr. Kramer during the light round on the October 14th, 15th, and 16th episodes of Mad Money. We’ve listed the stocks ranked by hedge fund sentiment as of the second quarter. This comes from Insider Monkey’s database of over 900 hedge funds.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Mr. Kramer of Clover Health Investments, Corp.: I just don’t want to go there.
Mr. Kramer of Clover Health Investments, Corp.: I just don’t want to go there.
Clover Health Investments, Corp. (NASDAQ:CLOV)
Number of hedge fund holders: 9 people
When a caller asked about Clover Health Investments (NASDAQ:CLOV), Kramer said:
“Oh, oh…I don’t want to go there. I know it’s a good company, but I don’t want to hurt anyone. I’m sorry.”
Clover Health (NASDAQ:CLOV) is a company that offers Medicare Advantage plans across the United States. The company also offers Clover Assistant, a cloud-based platform that enables physicians to identify and manage chronic diseases earlier, while providing personalized, data-driven insights for patient care. .
On October 10, the company announced significant results regarding its star rating from the Centers for Medicare and Medicaid Services (CMS). PPO Medicare Advantage plan ratings will increase to 4 stars in 2025, which will impact payments in 2026. Additionally, HMO Medicare Advantage plans received a 3.5-star rating. Additionally, more than 95% of Clover’s Medicare Advantage members have PPO plans, underscoring the company’s strong market presence.
CMS evaluates each plan annually based on health care quality and drug plan performance and assigns a star rating ranging from 1 to 5. Clover Health’s (NASDAQ:CLOV) overall rating for this measurement year reflects strong results across several metrics, including medication adherence, medication adherence, and medication adherence. Health Effectiveness Data and Information Set (HEDIS) and Consumer Assessment of Health Care Providers and Systems (CAHPS). Most importantly, the company received an impressive score of 4.94 out of 5 stars on HEDIS, which evaluates a plan’s effectiveness in conducting preventive screenings and managing various health conditions, including diabetes, cancer, and heart disease. is.
Overall, CLOV ranks #11 on Jim Cramer’s list of stocks discussed during his latest light round. While we recognize CLOV’s potential as an investment, we believe AI stocks are more likely to deliver higher returns and do so in a shorter time frame. If you’re looking for AI stocks that are more promising than CLOV but are trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: $30 trillion opportunity: Morgan Stanley’s 15 best humanoid robot stocks to buy and Jim Cramer says NVIDIA has ‘become a wasteland.’
Disclosure: None. This article was originally published on Insider Monkey.
