CVS Health Drops 2.81% Amid Volatility, Despite 38% May Surge

CVS Health's stock price fell to its lowest level since February 2025 today, with an intraday decline of 2.81%.

The strategy of buying CVS shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a 7.77% annualized gain. However, this was below the benchmark's annualized gain of 8.43%, indicating that while the strategy provided stability, it slightly underperformed the broader market. The maximum drawdown of -9.46% during the 2020 COVID-19 pandemic highlighted the strategy's ability to withstand market volatility, making it suitable for risk-averse investors.

CVS Health's stock has experienced notable volatility in May 2025. The company's shares surged nearly 38% this month, driven by stronger-than-expected first-quarter 2025 results. This positive performance has been a significant factor in boosting investor confidence and driving the stock price higher.

In addition to its strong financial performance, CVS Health is actively exploring strategic acquisitions. The company is reportedly bidding for stores and patient data from the bankrupt pharmacy chain Rite Aid. This move is part of CVS's broader strategy to expand its market presence and enhance its competitive position in the healthcare sector. The potential acquisition of Rite Aid's assets could provide CVS with valuable resources and opportunities for growth, further influencing investor sentiment positively.

However, CVS Health also faced a decline earlier in the month. The company's shares dropped 6.65 percent over three consecutive days, marking a losing streak. This downturn was attributed to various factors, including market volatility and investor concerns about the company's future prospects. Despite this temporary setback, the overall trend for CVS Health's stock price in May 2025 has been upward, reflecting the company's strong financial performance and strategic initiatives.