13 Most Promising Penny Stocks Under $5

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9. Clover Health Investments Corp. (NASDAQ:CLOV)

Share Price as of August 15: $2.66

Number of Hedge Fund Holders: 33

Clover Health Investments Corp. (NASDAQ:CLOV) is one of the most promising penny stocks under $5. On August 7, Canaccord lowered the firm’s price target on Clover Health to $4.10 from $4.50, while keeping a Buy rating on the shares. The firm said the company reported solid Q2 2025 results, but the insurance benefit expense ratio came in higher than expected, which was of some concern.

In Q2, the company’s Medicare Advantage membership grew by over 30% year-over-year, and the insurance revenue increased by 34% to $470 million. Clover Health Investments’ technology-first care model, which includes the Clover Assistant platform, showed a 15% reduction in hospitalizations and an 18% reduction in readmissions for patients with chronic obstructive pulmonary disease/COPD.

The company is now well-positioned for future growth with a 4-star payment year in 2026, which is expected to provide a financial tailwind. Clover Health is also expanding its technology platform to other risk-bearing entities, potentially opening up additional revenue streams.

Clover Health Investments Corp. (NASDAQ:CLOV) is a company that provides medicare advantage plans in the US. It operates Clover Assistant, which is a software platform to execute strategy by enabling physicians to detect, identify, and manage chronic diseases earlier than they otherwise could.

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