Is Waters Stock Built to Withstand More Downside?
Waters (WAT) stock is down 15.2% in 5 trading days. The recent slide reflects concerns over weak Q1 guidance and softer performance from its newly acquired BD business, 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 Waters stands today.
- Size: Waters is a $19 Bil company with $3.1 Bil in revenue currently trading at $323.37.
- Fundamentals: Last 12 month revenue growth of 6.9% and operating margin of 26.5%.
- Liquidity: Has Debt to Equity ratio of 0.08 and Cash to Assets ratio of 0.09
- Valuation: Waters stock is currently trading at P/E multiple of 29.7 and P/EBIT multiple of 22.9
These metrics point to a Moderate operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell WAT Stock
That brings us to the key consideration for investors worried about this fall: how resilient is WAT stock if markets turn south? This is where our downturn resilience framework comes in. Suppose WAT stock falls another 20-30% to $226 – can investors comfortably hold on? Turns out, the stock has fared 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
- WAT stock fell 44.3% from a high of $424.70 on 8 September 2021 to $236.70 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 $417.28 on 30 January 2025 , and currently trades at $323.37
| WAT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -44.3% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- WAT stock fell 33.5% from a high of $244.09 on 22 January 2020 to $162.36 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 15 December 2020
| WAT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -33.5% | -33.9% |
| Time to Full Recovery | 267 days | 148 days |
2018 Correction
- WAT stock fell 21.2% from a high of $253.15 on 8 April 2019 to $199.58 on 3 June 2019 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 5 January 2021
| WAT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -21.2% | -19.8% |
| Time to Full Recovery | 582 days | 120 days |
2008 Global Financial Crisis
- WAT stock fell 61.9% from a high of $80.77 on 15 January 2008 to $30.75 on 12 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 18 February 2011
| WAT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -61.9% | -56.8% |
| Time to Full Recovery | 708 days | 1,480 days |
Feeling jittery about WAT stock? Consider portfolio approach.
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