Adtalem Global Education Stock Fell 31% in a Day, What Now?

Adtalem Global Education (ATGE) stock is down 30.9% in a day. Already own the stock? You might want to consider holding it. Planning to buy? This might be your opportunity. Consider the following data:

• Size: Adtalem Global Education is a $3.5 Bil company with $1.8 Bil in revenue currently trading at $98.02.
• Fundamentals: Last 12 month revenue growth of 12.2% and operating margin of 19.5%.
• Liquidity: Has Debt to Equity ratio of 0.22 and Cash to Assets ratio of 0.09
• Valuation: Adtalem Global Education stock is currently trading at P/E multiple of 14.0 and P/EBIT multiple of 9.9
• Has returned (median) 68.6% within a year following sharp dips since 2010. See ATGE Dip Buy Analysis.

While we like to buy dips if the fundamentals check out – for ATGE, see Buy or Sell ATGE Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and ATGE drops another 20-30% to $69 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.

Below are the details, but before that, as a quick background: ATGE provides global workforce solutions, including medical and healthcare education programs, and financial services such as test preparation, certifications, conferences, and professional memberships.

2022 Inflation Shock

• ATGE stock fell 52.7% from a high of $41.69 on 12 March 2021 to $19.74 on 23 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 28 October 2022
• Since then, the stock increased to a high of $154.45 on 30 September 2025 , and currently trades at $98.02

 
2020 Covid Pandemic

• ATGE stock fell 41.8% from a high of $36.87 on 16 January 2020 to $21.46 on 18 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 27 July 2020

 
2018 Correction

• ATGE stock fell 48.9% from a high of $58.16 on 12 November 2018 to $29.70 on 30 October 2019 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 1 December 2023

 
2008 Global Financial Crisis

• ATGE stock fell 37.7% from a high of $62.63 on 22 January 2009 to $39.03 on 4 May 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 27 January 2010

 
It is a good thing to keep in mind how low ATGE could go during a downturn. And you should also check how the stock fared when compared with 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.