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.
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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