With QuidelOrtho Stock Sliding, Have You Assessed The Risk?
QuidelOrtho (QDEL) stock is down 10.1% in a day. The recent slide reflects renewed concerns around declining diagnostic testing revenue and broader market pressures, 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 QuidelOrtho stands today.
- Size: QuidelOrtho is a $2.0 Bil company with $2.7 Bil in revenue currently trading at $29.42.
- Fundamentals: Last 12 month revenue growth of -3.7% and operating margin of 4.0%.
- Liquidity: Has Debt to Equity ratio of 1.42 and Cash to Assets ratio of 0.02
- Valuation: QuidelOrtho stock is currently trading at P/E multiple of -1.7 and P/EBIT multiple of -2.1
- Has returned (median) -8.3% within a year following sharp dips since 2010. See QDEL Dip Buy Analysis.
These metrics point to a Very Weak operational performance, alongside Very Low valuation – making the stock Unattractive. For details, see Buy or Sell QDEL Stock
That brings us to the key consideration for investors worried about this fall: how resilient is QDEL stock if markets turn south? This is where our downturn resilience framework comes in. Suppose QDEL stock falls another 20-30% to $21 – 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
- QDEL stock fell 77.1% from a high of $254.00 on 1 February 2021 to $58.16 on 9 November 2023 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 $75.44 on 27 December 2023 , and currently trades at $29.42
| QDEL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -77.1% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- QDEL stock fell 49.7% from a high of $301.96 on 5 August 2020 to $151.99 on 8 September 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| QDEL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -49.7% | -33.9% |
| Time to Full Recovery | Not Fully Recovered | 148 days |
2018 Correction
- QDEL stock fell 42.1% from a high of $76.88 on 31 August 2018 to $44.55 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 8 January 2020
| QDEL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.1% | -19.8% |
| Time to Full Recovery | 380 days | 120 days |
2008 Global Financial Crisis
- QDEL stock fell 62.0% from a high of $20.84 on 30 October 2007 to $7.92 on 16 March 2009 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 4 January 2013
| QDEL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -62.0% | -56.8% |
| Time to Full Recovery | 1,390 days | 1,480 days |
Feeling jittery about QDEL stock? Consider portfolio approach.
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