GPI Dropped 15% In A Week. It Has Fallen Further Before.
- In Global Financial Crisis, Group 1 Automotive stock declined 90% vs 57% for S&P 500. During dot-com bubble, it dropped 72% compared to the S&P 500’s 37%.
- Following the Global Financial Crisis, the stock took 40 months to recover, compared to 49 months for the S&P 500. In the 2018 correction, the stock took 7 months to recover, compared to 4 months for the S&P 500.
Group 1 Automotive Stock Performance In Market Crashes:
| GPI | S&P 500 | |
|---|---|---|
| Dot-Com Bubble | ||
| % Change from Pre-Recession Peak | -72% | -37% |
| # of Months for Full Recovery | 6 | 69 |
| Global Financial Crisis | ||
| % Change from Pre-Recession Peak | -90% | -57% |
| # of Months for Full Recovery | 40 | 49 |
| 2018 Correction | ||
| % Change from Pre-Recession Peak | -41% | -20% |
| # of Months for Full Recovery | 7 | 4 |
| Covid Pandemic | ||
| % Change from Pre-Recession Peak | -70% | -34% |
| # of Months for Full Recovery | 7 | 5 |
| Inflation Shock | ||
| % Change from Pre-Recession Peak | -33% | -25% |
| # of Months for Full Recovery | 4 | 15 |
Worried that GPI is yet to hit the bottom? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. 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.
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