Clover Health (CLOV) saw a positive improvement to its Relative Strength (RS) Rating on Wednesday, rising from 76 to 97. That didn’t stop Clover Health’s stock from falling more than 23% on Wednesday, as short sellers rotated away from the health insurer.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This proprietary rating tracks market leadership by using a 1 (worst) to 99 (best) score that shows how a stock’s price action over the last 52 weeks matches up against the rest of the market.
History reveals that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 as they begin their largest price moves.
Clover Health stock is still more than 5% past a 13.45 entry in a first-stage cup without handle, meaning it’s now out of a proper buy zone. Look for the stock to offer a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week line.
Earnings growth picked up last quarter from 0% to 45%. But sales fell from 44% to 21%.
Clover Health holds the No. 7 rank among its peers in the Medical-Managed Care industry group. Progyny (PGNY), Apollo Medical (AMEH) and Centene (CNC) are among the top 5 highly rated stocks within the group.
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