Can Progyny Stock Recover If Markets Fall?
Progyny (PGNY) stock is down 11.2% in a day. The recent slide reflects renewed concerns around slowing revenue growth and utilization rates in its fertility benefits, 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 reslience, let’s look at where Progyny stands today.
- Size: Progyny is a $2.2 Bil company with $1.3 Bil in revenue currently trading at $25.24.
- Fundamentals: Last 12 month revenue growth of 11.4% and operating margin of 6.8%.
- Liquidity: Has Debt to Equity ratio of 0.01 and Cash to Assets ratio of 0.43
- Valuation: Progyny stock is currently trading at P/E multiple of 38.4 and P/EBIT multiple of 25.3
- Has returned (median) 22.9% within a year following sharp dips since 2010. See PGNY Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell PGNY Stock
That brings us to the key consideration for investors worried about this fall: how resilient is PGNY stock if markets turn south? This is where our downturn resilience framework comes in. Suppose PGNY stock falls another 20-30% to $18 – can investors comfortably hold on? Turns out, the stock has fared much worse 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.
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2022 Inflation Shock
- PGNY stock fell 60.9% from a high of $66.66 on 8 November 2021 to $26.06 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $46.08 on 15 August 2022 , and currently trades at $25.24
| PGNY | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -60.9% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- PGNY stock fell 53.7% from a high of $35.60 on 18 February 2020 to $16.47 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 27 November 2020
| PGNY | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -53.7% | -33.9% |
| Time to Full Recovery | 249 days | 148 days |
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