RIG Lost 21% In A Month. History Suggests More Pain Is Possible.
- In Covid Pandemic, Transocean stock declined 91% vs 34% for S&P 500. During 2018 correction, it dropped 76% compared to the S&P 500’s 20%.
- Following the Global Financial Crisis, the stock has not yet recovered to its pre-crisis peak, whereas the S&P 500 recovered in 49 months. Same thing happened with the 2018 correction, as the stock has not yet recovered to its pre-crisis peak while the S&P 500 recovered in 4 months.
Transocean Stock Performance In Market Crashes:
| RIG | S&P 500 | |
|---|---|---|
| Dot-Com Bubble | ||
| % Change from Pre-Recession Peak | -63% | -37% |
| # of Months for Full Recovery | 51 | 69 |
| Global Financial Crisis | ||
| % Change from Pre-Recession Peak | -74% | -57% |
| # of Months for Full Recovery | Yet to Recover | 49 |
| 2018 Correction | ||
| % Change from Pre-Recession Peak | -76% | -20% |
| # of Months for Full Recovery | Yet to Recover | 4 |
| Covid Pandemic | ||
| % Change from Pre-Recession Peak | -91% | -34% |
| # of Months for Full Recovery | 28 | 5 |
| Inflation Shock | ||
| % Change from Pre-Recession Peak | -54% | -25% |
| # of Months for Full Recovery | 4 | 15 |
Worried that RIG 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.