That said, MDT isn’t immune to big sell-offs. It fell about 36% in the Dot-Com crash, nearly 57% during the Global Financial Crisis, and roughly 45% in the inflation shock. Even the smaller dips, like in 2018 and the Covid pandemic, dragged it down around 17% and 40%, respectively. Solid fundamentals matter, but in turbulent times, deep pullbacks are part of the game.
But the risk is not limited to major market crashes. Stocks fall even when markets are good - think events like earnings, business updates, and outlook changes. Read MDT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 - the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
