Is FactSet Research Systems Stock Built to Withstand More Downside?
FactSet Research Systems (FDS) stock is down 8.9% in 21 trading days. The recent slide reflects renewed concerns around generative AI disruption and mixed earnings 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 resilience, let’s look at where FactSet Research Systems stands today.
- Size: FactSet Research Systems is an $8.4 Bil company with $2.4 Bil in revenue currently trading at $225.40.
- Fundamentals: Last 12 months revenue growth of 5.9% and operating margin of 31.7%.
- Liquidity: Has Debt to Equity ratio of 0.19 and Cash to Assets ratio of 0.07
- Valuation: FactSet Research Systems stock is currently trading at P/E multiple of 14.1 and P/EBIT multiple of 10.7
- Has one instance since 2010 where it dipped >30% in <30 days and subsequently returned 15.6% within a year
These metrics point to a Strong operational performance, alongside low valuation—making the stock Attractive. For details, see Buy or Sell FDS Stock
That brings us to the key consideration for investors worried about this fall: how resilient is FDS stock if markets turn south? This is where our downturn resilience framework comes in. Suppose FDS stock falls another 20-30% to $158 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better 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
- FDS stock fell 28.7% from a high of $488.85 on 29 December 2021 to $348.71 on 16 June 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 13 November 2024
- Since then, the stock increased to a high of $495.72 on 14 November 2024 , and currently trades at $225.40
| FDS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -28.7% | -25.4% |
| Time to Full Recovery | 881 days | 464 days |
2020 Covid Pandemic
- FDS stock fell 33.7% from a high of $308.66 on 19 February 2020 to $204.55 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 3 June 2020
| FDS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -33.7% | -33.9% |
| Time to Full Recovery | 72 days | 148 days |
2018 Correction
- FDS stock fell 22.4% from a high of $302.05 on 19 June 2019 to $234.28 on 8 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 18 February 2020
| FDS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -22.4% | -19.8% |
| Time to Full Recovery | 133 days | 120 days |
2008 Global Financial Crisis
- FDS stock fell 54.9% from a high of $73.53 on 10 October 2007 to $33.18 on 20 November 2008 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 16 November 2009
| FDS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -54.9% | -56.8% |
| Time to Full Recovery | 361 days | 1,480 days |
Feeling jittery about FDS stock? Consider a portfolio approach.
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