Assessing Clear Secure (YOU) After CMS Contract and Growing Healthcare Identity Momentum

Clear Secure (YOU) just landed a high profile contract with the Centers for Medicare & Medicaid Services, plugging its CLEAR1 identity platform into Medicare.gov and pushing the stock to fresh multi year highs.

See our latest analysis for Clear Secure.

That CMS win caps a stretch of upbeat news, from new digital health partnerships to fresh airport lane openings. Investors have taken notice, with a roughly 52% year to date share price return and a 60% one year total shareholder return suggesting momentum is building rather than fading.

If Clear Secure's run has you rethinking where growth might show up next in healthcare, it could be a smart moment to explore healthcare stocks as potential next candidates for your watchlist.

Yet with shares already ahead of Wall Street targets and trading near multi year highs, the key question now is whether Clear Secure is still trading at a discount to its long term potential or if the market is fully pricing in future growth.

Most Popular Narrative Narrative: 7% Overvalued

The most followed narrative pegs Clear Secure's fair value near $38.38 per share, below the recent $41.08 close, setting up an interesting tension between model and market.

The company's public private partnership initiatives for deploying end to end automated lanes in airports can significantly expand market reach without incurring extra government costs. This should support higher revenues and potentially wider net margins due to the cost saving advantages of automation.

Read the complete narrative.

Want to see what kind of revenue path and margin reset would justify this richer price tag? The narrative leans on steady top line growth, slimmer profitability, and a future earnings multiple that assumes investors keep rewarding Clear like a premium software platform. Curious which specific long term projections connect those dots and back up that higher valuation?

Result: Fair Value of $38.38 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, leadership transitions and any stumble in renegotiating key credit card partnerships could quickly pressure Clear's growth, margins, and premium valuation expectations.

Find out about the key risks to this Clear Secure narrative.

Another Angle on Value

Multiples tell a different story. At 22.1 times earnings, Clear Secure trades well below peers at 52.3 times and below its 26 times fair ratio, suggesting potential upside even if growth slows. If sentiment cools or catches up, which reference point will investors follow?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Clear Secure Narrative

If this perspective does not quite match your view, or you prefer digging into the numbers yourself, you can build a custom narrative in just a few minutes, starting with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Clear Secure.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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