{"id":86817,"date":"2023-11-20T20:40:33","date_gmt":"2023-11-21T01:40:33","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/down-27-this-year-will-mettler-toledo-stock-recover-to-pre-inflation-shock-highs\/"},"modified":"2023-11-20T20:40:34","modified_gmt":"2023-11-21T01:40:34","slug":"down-27-this-year-will-mettler-toledo-stock-recover-to-pre-inflation-shock-highs","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=86817","title":{"rendered":"Down 27% This Year Will Mettler-Toledo Stock Recover To Pre-Inflation Shock Highs?"},"content":{"rendered":"
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Mettler-Toledo stock (NYSE: MTD), a global manufacturer of scales and analytical instruments, trades at $1,050 per share, 11% below the level seen in March 2021. MTD stock was trading at around $1,150 in early June 2022, just before the Fed started increasing rates, and is now 9% below that level, compared to 19% gains for the S&P 500 during this period. Metttler-Toledo\u2019s Q3 results announced last week were better than the street estimates, but its Q2 results were weak, and the company lowered its 2023 guidance, after both quarters, weighing on its stock in recent months.<\/p>\n

Looking at a slightly longer term, MTD stock has seen little change, moving slightly from levels of $1140 in early January 2021 to around $1050 now, vs. an increase of about 20% for the S&P 500 over this roughly 3-year period. Overall, the performance of MTD stock with respect to the index has been quite volatile. Returns for the stock were 49% in 2021, -15% in 2022, and -27% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 18% in 2023 – indicating that MTD underperformed the S&P<\/strong> in 2023.<\/p>\n

In fact, consistently beating the S&P 500<\/strong> – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Health Care sector, including LLY, UNH, and JNJ, and even for the megacap stars GOOG, TSLA, and MSFT.<\/p>\n

In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year<\/strong> over the same period. Why is that?<\/strong> 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.<\/p>\n

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Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could MTD face a similar situation as it did in 2023 and underperform the S&P<\/strong> over the next 12 months – or will it see a strong jump? Returning to the pre-inflation shock high of over $1,700 (seen in Dec 2021) means that MTD stock will have to gain around 60% from here, and we don\u2019t think that will materialize anytime soon. That said, MTD stock currently trades at 5.8x revenues, below its last five-year average of 7.8x, and appears to have some room for growth. Our Mettler-Toledo Valuation Ratios Comparison<\/strong> dashboard has more details.<\/p>\n

Our detailed analysis of Mettler-Toledo\u2019s upside post-inflation shock<\/strong> captures trends in the company\u2019s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock\u2019s performance during the 2008 recession.<\/p>\n

2022 Inflation Shock<\/strong><\/p>\n

Timeline of Inflation Shock So Far:<\/p>\n