Revvity Stock Jump Looks Great, But How Secure Is That Gain?

Revvity (RVTY) stock is up 13.4% in 5 trading days. The rally reflects optimism around its portfolio shift and share buyback, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?

Before judging its downturn reslience, let’s look at where Revvity stands today.

• Size: Revvity is a $12 Bil company with $2.8 Bil in revenue currently trading at $105.57.
• Fundamentals: Last 12 month revenue growth of 3.4% and operating margin of 12.9%.
• Liquidity: Has Debt to Equity ratio of 0.28 and Cash to Assets ratio of 0.08
• Valuation: Revvity stock is currently trading at P/E multiple of 51.3 and P/EBIT multiple of 33.6
• Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 92.1% within a year. See RVTY Dip Buy Analysis.

These metrics point to a Weak operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell RVTY Stock

That brings us to the key consideration for investors chasing this rally: how resilient is RVTY stock if markets turn south? This is where our downturn resilience framework comes in. Suppose RVTY stock falls 20-30% to $74 – can investors comfortably hold on? Turns out, the stock saw an impact slightly 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.

2022 Inflation Shock

• RVTY stock fell 59.2% from a high of $201.06 on 31 December 2021 to $82.08 on 30 October 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 $127.75 on 30 September 2024 , and currently trades at $105.57

 
2020 Covid Pandemic

• RVTY stock fell 34.4% from a high of $101.73 on 15 January 2020 to $66.71 on 16 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 1 June 2020

 
2018 Correction

• RVTY stock fell 26.1% from a high of $97.27 on 28 September 2018 to $71.87 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 21 March 2019

 
2008 Global Financial Crisis

• RVTY stock fell 63.0% from a high of $29.69 on 15 August 2008 to $11.00 on 9 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 14 September 2012

 
Feeling jittery about RVTY stock? Consider portfolio approach.

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