CorVel Corporation (NASDAQ:CRVL) is Gaining Momentum on Earnings Catalyst

CorVel Corporation (NASDAQ:CRVL) is Gaining Momentum on Earnings Catalyst


The CorVel Corporation (CRVL) shares are trading at higher $70.74.

To add more color to this target, the company’s high over the last year is $96.45 and the low is $44.67. Over the last 52 weeks, CRVL is down -26.66% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CRVL reported a profit of $30.69 million. CorVel Corporation also saw revenues increase to $147.02 million. In addition, CRVL has free cash flow of $48.47 million as of 03-2020 The company’s EBITDA came in at $20.52 million which compares well with its peers.

CRVL booked profit margins of 8.00%, its Return on Equity (ROE) is 24.10%, and its Return on Assets is 11.20%. All told, it is clear that, CRVL needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CRVL has a short ratio of 1.83 and outstanding shares of 18.07M.

Company Outlook

CRVL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 97200.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.55. CorVel Corporation CRVL also noted assets of $416.26 million at the end of the last quarter. Investors should also keep an eye on sector updates as CRVL has historically followed its peers on positive news.

All told, CorVel Corporation CRVL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CRVL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

CorVel Corporation CRVL is now commanding a market cap of 1.31B and a float of 9.10M. CRVL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CRVL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CRVL, either long or short, and we have not been compensated for this article.