TrueBlue Shares Plunge 10.49% on Q1 Loss, Lowest Since 2001

TrueBlue(TBI) shares plummeted 10.49% today, marking the second consecutive day of decline, with a total drop of 13.51% over the past two days. The stock price hit its lowest level since October 2001, experiencing an intraday decline of 19.58%.

The strategy of buying TBI shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and sharp peak at the beginning of 2025. However, overall performance was lackluster, indicating a need for more robust criteria or a longer holding period to achieve better results.

Maximum Drawdown: The maximum drawdown of -46.74% occurred in early 2025, reflecting the strategy's high risk during market lows.

Peak at Beginning of 2025: A peak return of 46.51% was observed at the start of 2025, coinciding with a rebound in the stock price following the low point.

Average Annual Return: The average annual return was approximately 2%, which, while positive, is relatively low and underperformed the broader market.

Volatility: The strategy exhibited high volatility, with periods of significant loss followed by recovery. This volatility was a result of market fluctuations and the stock's sensitivity to economic conditions.

In conclusion, while the strategy showed potential for high returns in specific periods, such as the rebound in 2025, the overall performance was mixed. It highlights the importance of considering additional factors or a longer investment horizon to enhance returns and mitigate risks in such a volatile scenario.

TrueBlue's financial performance for the first quarter of 2025 has been a significant factor in the recent stock price decline. The company reported a net loss of $14 million, or $0.40 per share, which fell short of the Zacks Consensus Estimate of a loss of $0.23 per share. This represents a sharp decline from the earnings of $0.03 per share in the same period last year.

Revenue for the first quarter of 2025 was $370 million, an 8% decrease from $403 million in the same period last year. Despite this decline, the revenue figure exceeded market consensus expectations of $362.4 million. However, the gross margin decreased by 140 basis points to 23.3%, indicating a decline in profitability.

Market conditions have also played a role in TrueBlue's financial challenges. The company has faced ongoing low demand and bearish market indicators, which have contributed to the financial difficulties and subsequent stock performance. These factors collectively highlight the financial and operational challenges TrueBlue is currently facing, which are impacting its stock price.