Flex Stock Extends A 7-Day Losing Streak To A 27% Loss
Shares of Flex have closed lower in each of the last 7 sessions, a cumulative decline of 27.0%. That erased about $11.8 billion from the company’s market value, which now stands at about $32.0 billion. The stock closed at $87.49 on Tuesday, October 20, 46.0% below its 52-week high of $162.07 and 60.5% above its low of $54.51.
FLEX Versus The S&P 500
Returns for FLEX and the S&P 500 over the streak and the periods around it, all ending Tuesday, October 20 and including dividends:
| Return Period | FLEX | S&P 500 |
|---|---|---|
| 1 Day | -0.1% | 0.3% |
| 7 Days (Current Streak) | -27.0% | -1.3% |
| 1 Month (21 Trading Days) | -21.6% | -0.6% |
| 3 Months (63 Trading Days) | -31.1% | 3.1% |
| Year To Date | 44.8% | 13.7% |
| 1 Year (252 Trading Days) | 40.8% | 17.1% |
How The Streak Compares With The Market
Over the same 7 trading days, the S&P 500 returned -1.3% including dividends, so the slide is mostly Flex’s own story rather than the market’s. 5 other S&P 500 stocks are currently on losing streaks of 7 days or longer. Over the past three months the stock is down 31.1%, a window that includes the streak; over the other 56 sessions of that window it was down 5.6%.
Do The Fundamentals Justify The Selling?
On the fundamentals, revenue grew 12.2% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 5.2%, versus a median of 21.6%; and the stock trades at 32.9 times trailing earnings against a median of 34.4. The selling is hard to square with the fundamentals: a multiple below the median.
A slide like this raises an obvious follow-up: which marked-down stocks are actually worth buying? Our Buy the Dip screen runs that test every day, flagging beaten-down names whose fundamentals still hold up.
Weakness In One Name Should Be Noise, Not News
For a diversified holder, a streak like this is a data point. For a concentrated one, it is a hole in the plan. The difference is never the stock; it is the portfolio built around it.
Building that portfolio is what the Trefis High Quality (HQ) Portfolio does: roughly 30 businesses with the cash generation and balance-sheet strength to absorb a bad month, selected and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Make the next streak, in either direction, someone else’s drama.