• Sun. Apr 14th, 2024

How the decline in Medicare Advantage payment rates impacted CVS Health Corp and its potential for a short-term bounce

BySamantha Nguyen

Apr 3, 2024
Possible Rebound for CVS Health Stock on the Horizon

Medicare Advantage (MA) payment rates have been finalized and were lower than expected, resulting in a decline in health insurance stocks. This news also had a negative impact on CVS Health Corp (NYSE:CVS), which experienced a 7.2% drop – the largest daily percentage loss since August. Despite recovering slightly today, with shares up 0.7% at $74.37, the recent pullback has brought CVS close to its 200-day moving average, a trendline that has historically been bullish for the stock.

Schaeffer’s Senior Quantitative Analyst Rocky White believes that CVS is oversold and could see a short-term bounce due to its current 14-day relative strength index (RSI) of 29.4. White notes that CVS has been within one standard deviation of its 200-day moving average before, which resulted in an average gain of 3% one month later. Additionally, White suggests that the stock is currently on an upward trend, as it has only lost three days since March 14 despite being down 5.7% since the beginning of the year.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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