Can Acadia Healthcare Stock Recover If Markets Fall?
Acadia Healthcare (ACHC) stock is down 16.9% in 5 trading days. The recent slide reflects renewed concerns around increased liability costs and lowered 2025 guidance, 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 Acadia Healthcare stands today.
- Size: Acadia Healthcare is a $1.3 Bil company with $3.3 Bil in revenue currently trading at $14.00.
- Fundamentals: Last 12 month revenue growth of 4.6% and operating margin of 13.6%.
- Liquidity: Has Debt to Equity ratio of 1.08 and Cash to Assets ratio of 0.02
- Valuation: Acadia Healthcare stock is currently trading at P/E multiple of 20.9 and P/EBIT multiple of 8.2
These metrics point to a Weak operational performance, alongside Low valuation – making the stock Risky. For details, see Buy or Sell ACHC Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ACHC stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ACHC stock falls another 20-30% to $10 – 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
- ACHC stock fell 25.9% from a high of $68.26 on 2 September 2021 to $50.61 on 7 February 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 6 April 2022
- Since then, the stock increased to a high of $89.06 on 30 November 2022 , and currently trades at $14.00
| ACHC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -25.9% | -25.4% |
| Time to Full Recovery | 58 days | 464 days |
2020 Covid Pandemic
- ACHC stock fell 66.4% from a high of $35.04 on 20 February 2020 to $11.78 on 23 March 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 30 October 2020
| ACHC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -66.4% | -33.9% |
| Time to Full Recovery | 221 days | 148 days |
2018 Correction
- ACHC stock fell 53.3% from a high of $53.00 on 28 July 2017 to $24.75 on 24 December 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 2 February 2021
| ACHC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -53.3% | -19.8% |
| Time to Full Recovery | 771 days | 120 days |
2008 Global Financial Crisis
- ACHC stock fell 86.7% from a high of $14.85 on 28 February 2007 to $1.98 on 10 March 2009 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 13 March 2012
| ACHC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -86.7% | -56.8% |
| Time to Full Recovery | 1099 days | 1480 days |
Feeling jittery about ACHC stock? Consider portfolio approach.
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Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.
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