Weyerhaeuser Stock: 8 Straight Red Days, Down 14%

Shares of Weyerhaeuser (WY) have closed lower in each of the last 8 sessions, a cumulative decline of 14.3%. That erased about $2.2 billion from the company's market value, which now stands at about $13.3 billion. The stock closed at $18.47 on Friday, October 2, its lowest close of the past year.

The Streak Next To The S&P 500

Returns for WY and the S&P 500 over the streak and the periods around it, all ending Friday, October 2 and including dividends:

How The Streak Compares With The Market

The market explains little of this: the S&P 500 lost 0.5% over the same 8 sessions, including dividends, against Weyerhaeuser's -14.3%. 2 other S&P 500 stocks are currently on losing streaks of 8 days or longer. Over the past three months the stock is down 20.3%, a window that includes the streak; over the other 55 sessions of that window it was down 7.1%.

Do The Fundamentals Justify The Selling?

On the fundamentals, revenue declined 2.6% over the last twelve months, against a median of 5.4% for S&P 500 Real Estate stocks; its operating margin is 6.1%, versus a median of 27.6%; and the stock trades at 28.2 times trailing earnings against a median of 28.8. The fundamentals give the sellers some support: shrinking revenue and margins below the median.

If the drop has you weighing an entry, resist buying on price alone. Our Buy the Dip screen ranks the marked-down names where growth and cash generation still hold up.

For anyone who would rather back the theme than one company, a real estate ETF like XLRE holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.

Falling Prices Test Conviction. Rules Do Not Flinch

A losing streak forces a choice on every holder: sell into weakness, average down, or freeze. All three are emotional answers to what should be an analytical question, and decisions made that way tend to be expensive ones.

The Trefis High Quality (HQ) Portfolio takes the emotion out: about 30 quality businesses screened for the fundamentals that survive bad stretches, held and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Let the rules decide, not the tape.