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.
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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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