• Sun. Apr 21st, 2024

Medicare Advantage Payment Rates Cause Health Insurance Stocks Slump, Including CVS: Is It Time to Buy the Dip?

BySamantha Nguyen

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

Yesterday, health insurance stocks saw a decline due to final Medicare Advantage (MA) payment rates that were lower than expected. This news also impacted CVS Health Corp (NYSE:CVS), which saw a 7.2% drop – the largest daily percentage loss since August. Despite a modest recovery 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 those considering buying the dip, Schaeffer’s Senior Quantitative Analyst Rocky White notes that CVS has been within one standard deviation of its 200-day moving average before, which resulted in a 3% gain on average one month later. Additionally, the stock’s 14-day relative strength index (RSI) of 29.4 suggests that it is oversold and could see a short-term bounce. Before yesterday’s drop, CVS had been on an upward trend, with only three daily losses since March 14, though overall the stock is down 5.7% since the beginning of the year.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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