CorVel Stock Drop Looks Sharp, But How Deep Can It Go?
CorVel (CRVL) stock is down 26.1% in a day. The recent CRVL slide reflects renewed concerns around its workers’ compensation sector growth and rising tax rates, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where CorVel stands today.
- Size: CorVel is a $2.6 Bil company with $934 Mil in revenue currently trading at $51.58.
- Fundamentals: Last 12 month revenue growth of 10.4% and operating margin of 14.5%.
- Liquidity: Has Debt to Equity ratio of 0.01 and Cash to Assets ratio of 0.34
- Valuation: CorVel stock is currently trading at P/E multiple of 25.1 and P/EBIT multiple of 19.6
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 65.9% within a year. See CRVL Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside High valuation – making the stock Fairly Priced. For details, see Buy or Sell CRVL Stock
That brings us to the key consideration for investors worried about this fall: how resilient is CRVL stock if markets turn south? This is where our downturn resilience framework comes in. Suppose CRVL stock falls another 20-30% to $36 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- CRVL stock fell 37.1% from a high of $69.95 on 3 January 2022 to $43.99 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 May 2023
- Since then, the stock increased to a high of $128.46 on 5 February 2025 , and currently trades at $51.58
| CRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -37.1% | -25.4% |
| Time to Full Recovery | 328 days | 464 days |
2020 Covid Pandemic
- CRVL stock fell 50.7% from a high of $31.94 on 21 January 2020 to $15.74 on 14 May 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 December 2020
| CRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -50.7% | -33.9% |
| Time to Full Recovery | 217 days | 148 days |
2018 Correction
- CRVL stock fell 20.9% from a high of $20.10 on 19 October 2017 to $15.90 on 1 March 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 August 2018
| CRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -20.9% | -19.8% |
| Time to Full Recovery | 175 days | 120 days |
2008 Global Financial Crisis
- CRVL stock fell 66.6% from a high of $7.99 on 3 January 2007 to $2.67 on 11 December 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 November 2010
| CRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -66.6% | -56.8% |
| Time to Full Recovery | 699 days | 1,480 days |
Feeling jittery about CRVL stock? Consider portfolio approach.
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