CareCloud, Inc. (CCLD): A Bull Case Theory

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We came across a bullish thesis on CareCloud, Inc. (CCLD) on Undervalued and undercovered ’s Substack by Hugh Navarro. In this article, we will summarize the bulls’ thesis on CCLD. CareCloud, Inc. (CCLD)’s share was trading at $2.4 as of 16th July. CCLD’s forward P/E was 8.28, respectively according to Yahoo Finance.

A doctor utilizing a cloud-based healthcare platform to access patient records.

CareCloud (Nasdaq: CCLD) presents a rare opportunity in the healthcare IT sector—a high-margin, recurring-revenue business trading at a deeply discounted valuation with an 18% free cash flow yield. Its core offering is a vertically integrated platform providing Revenue Cycle Management (RCM), Electronic Health Records (EHR), and Practice Management (PM) software to small and medium-sized medical practices.

With 67% of revenue from RCM, CareCloud helps practices get paid faster and more efficiently, boasting a denial rate under 3% and up to 94% first-pass claims. The cloud-based system integrates billing, insurance checks, and analytics, differentiating itself with robotic automation and an in-house clearinghouse. Complementing this is a growing AI layer, cirrusAI, which powers real-time clinical note generation, chatbot support for staff, and automated appeals for denied claims. The company is aggressively expanding this AI infrastructure, aiming for 500 engineers by year-end, setting it up for long-term product superiority.

Despite an 11% contribution from medical practice management, the real upside lies in the company’s scalable tech and a consolidation strategy focused on acquiring customer bases from smaller, less efficient players. CareCloud also benefits from significant NOLs, insulating it from taxes for years. Past selling pressure due to a complex preferred-share structure has left shares undervalued, but a founder-led, 15%-insider-owned management team is now aligned for growth. The sector’s rising complexity and demand for automation make CareCloud’s solutions increasingly vital. With churn at just 5%, strong embedded pricing power, and multiple growth levers, the stock offers a compelling path to multi-bagger returns, potentially 5x from current levels.

Previously we covered a bullish thesis on SANUWAVE Health, Inc. (SNWV) by @rationalformula in May 2025, which highlighted the company’s turnaround story, recurring revenue from its FDA-cleared wound care device, and strong operational momentum. The company’s stock price has appreciated by approximately 7% since our coverage. This is because the thesis played out with improving financials and execution. This is because demand for its consumables remains strong despite historical challenges. CareCloud author shares a similar view but emphasizes on software-driven efficiency and AI-powered automation as the growth engine in healthcare IT.

CareCloud, Inc. (CCLD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held CCLD at the end of the first quarter which was 3 in the previous quarter. While we acknowledge the risk and potential of CCLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CCLD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.