Why CVS Health Corporation (CVS) Declined on Tuesday

Angelica Ballesteros

Wed, May 14, 2025, 2:57 AM 2 min read

We recently published an article titled Massive Sell-Offs Just Hit These 10 Stocks Today. In this article, we are going to take a look at where CVS Health Corporation (NYSE:CVS) stands against the other stocks.

Wall Street’s main indices finished mixed on Tuesday, as investors digested the country’s latest inflation figures, which came out lower than expected.

On Tuesday, the Labor Department reported that the Consumer Price Index for April rose by only 0.2 percent last month, bringing the annual inflation rate to 2.3 percent, versus the 2.4 percent in March. It was the lowest annual rate since February 2021.

Only the S&P 500 and the tech-heavy Nasdaq registered gains among all major indices, up by 0.72 percent and 1.61 percent, respectively. The Dow Jones, on the other hand, was down by 0.64 percent.

Beyond the main indices, 10 firms lagged in performance amid negative news, sparking sell-offs.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

A row of shelves in a retail pharmacy, demonstrating the variety of drugs and over-the-counter products.

CVS Health Corporation (NYSE:CVS) extended its losing streak for a third straight day on Tuesday, dropping 6.65 percent to close at $60.50 apiece as investor sentiment was dampened by President Donald Trump’s executive order to lower the prices of medicines.

The news sparked fears among investors over the impact of the new order on the profits and margins of drugmakers and retailers, including CVS Health Corporation (NYSE:CVS).

Further weighing down on sentiment was a lawsuit filed by four state attorneys general against the company, claiming that CVS Health Corporation (NYSE:CVS) and its pharmacies allegedly submitted “false and fraudulent” claims to state Medicaid programs.

According to attorneys general from Connecticut, Indiana, Oklahoma, and Massachusetts, CVS Health Corporation (NYSE:CVS) has not submitted usual and customary prices available to other payers on prescription drug claims to Medicaid since 2016. CVS has yet to comment on the allegations.

Overall CVS ranks 9th on our list of Tuesday's worst performers. While we acknowledge the potential of CVS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CVS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.