NWSA Dropped 5.7% In A Day. Have You Fully Evaluated The Risk?
News (NWSA) stock is down 5.7% in a day. While history suggests price dips recover, there is risk – specific to growth and downturn resilience. Consider the following data:
- Size: A $16 Bil company with $8.9 Bil in revenue currently trading at $28.95.
- Fundamentals: Last 12 month revenue growth of 2.4% and operating margin of 10.8%.
- Liquidity: Has Debt to Equity ratio of 0.18 and Cash to Assets ratio of 0.15
- Valuation: Currently trading at P/E multiple of 13.6 and P/EBIT multiple of 15.6
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 186% within a year. See NWSA Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for NWSA, see Buy or Sell NWSA Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and NWSA drops another 20-30% to $20 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into News (NWSA) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared worse 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.
Below are the details, but before that, as a quick background: NWSA provides content creation and distribution across digital real estate, subscription video, news media, publishing, and data products via multiple media channels and platforms.
- 8-Day Sell-Off Sends News Stock Down -15%
- News Stock In Downward Spiral: -13% Loss After 7-Day Losing Streak
- NWSA Down 11% in One Week, Now Is Not The Time To Buy The Stock
- News Stock In Downward Spiral: -12% Loss After 6-Day Losing Streak
- Now Is Not The Time To Buy News Stock
- NWSA Stock Down -9.6% after 5-Day Loss Streak
2022 Inflation Shock
- NWSA stock fell 45.9% from a high of $27.64 on 11 May 2021 to $14.95 on 27 September 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 5 June 2024
- Since then, the stock increased to a high of $31.03 on 29 September 2025 , and currently trades at $28.95
| NWSA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.9% | -25.4% |
| Time to Full Recovery | 617 days | 464 days |
2020 Covid Pandemic
- NWSA stock fell 45.1% from a high of $14.91 on 16 January 2020 to $8.18 on 3 April 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 12 August 2020
| NWSA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.1% | -33.9% |
| Time to Full Recovery | 131 days | 148 days |
2018 Correction
- NWSA stock fell 36.9% from a high of $17.22 on 19 January 2018 to $10.87 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 16 November 2020
| NWSA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.9% | -19.8% |
| Time to Full Recovery | 693 days | 120 days |
Worried that NWSA could fall much more? 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 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.