Weekly Drawdown Report: June 20, 2026

Why 45% of Tracked Stocks Have Fallen Into the Red Zone

As of June 20, 2026, our data shows a significant portion of the market is experiencing deep, prolonged pullbacks, with 45.0% of all tracked assets now trading in the high-risk red zone. The average Drawdown Severity Score™ across our entire coverage universe has climbed to 5.4, indicating systemic pressure across multiple sectors. This weekly report analyzes these shifting risk profiles, identifies the most severe individual drawdowns, and highlights key assets approaching critical transition thresholds.

Market Drawdown Distribution as of June 20, 2026

Our data tracking 786 total assets reveals a market heavily tilted toward deep corrections. More than two-fifths of the entire coverage universe currently resides in the highest risk category, reflecting broad-based selling pressure that has persisted for several quarters.

The table below outlines the current distribution of assets across our three primary risk zones as of June 20, 2026.

This distribution highlights a stark polarization in the market. While nearly a third of tracked equities remain relatively healthy in the green zone, the heavy concentration in the red zone shows that when assets fall, they are falling deeply and struggling to recover. The average Drawdown Severity Score™ of 5.4 indicates that the typical tracked asset is currently experiencing a historically significant correction.

Weekly Zone Changes and Market Shifts

Several notable assets crossed critical risk thresholds during the week ending June 20, 2026. These transitions highlight where selling momentum is accelerating and where recovery patterns are beginning to emerge.

The transition of consumer staples like Kroger Co. (KR) and J.M. Smucker Co. (SJM) into the red zone shows that defensive sectors are no longer immune to the broader market correction. Meanwhile, digital assets and related vehicles like ETHB continue to show high volatility, with its severity score rising to 5.2.

On a positive note, Alphabet Inc. (GOOGL) managed to climb back into the green zone with a severity score of 1.8, showing strong resilience relative to the broader market. Carvana Co. (CVNA) also showed signs of stabilization, escaping the red zone as its severity score moderated to 4.5.

The Most Extreme Drawdowns in the Market

The most severe drawdowns in our database represent assets that have experienced catastrophic value destruction over years, and in some cases, decades. These five assets carry the highest Drawdown Severity Score™ ratings in our system as of June 20, 2026.

The sheer duration of these drawdowns is notable. Uranium Energy Corp (EU) has been locked in a drawdown for 5599 days, illustrating how long capital can remain impaired in cyclical commodity sectors. Similarly, former market darlings like Upstart Holdings (UP) and PayPal Holdings (PYPL) have been in continuous drawdowns for nearly five years, with peak-to-trough declines exceeding 85%.

Stocks Approaching the Red Zone Boundary

Monitoring assets that are on the verge of entering the red zone is crucial for risk management. The following stocks currently carry a severity score between 4.8 and 5.0, placing them right on the edge of a high-risk designation as of June 20, 2026.

These borderline cases span multiple sectors, from stable infrastructure plays like ONEOK (OKE) to rapid-growth fintechs like Nu Holdings (NU). While Nu Holdings (NU) has only been in a drawdown for 98 days, its rapid 32.2% decline has caused its severity score to spike quickly to 4.9. In contrast, defensive giants like PepsiCo (PEP) and Bristol Myers Squibb (BMY) have been grinding lower for over 1000 days, showing how slow-burning declines can eventually accumulate significant risk.

Down and Historically Low Versus Their Own Record

Several prominent companies are currently trading at valuation multiples that are exceptionally low relative to their own historical ranges. The table below highlights assets with severe price drawdowns where current price-to-sales (P/S) ratios and EV/EBITDA multiples sit near the bottom of their historical distributions as of the valuation snapshot date of 2026-06-20.

These software and communication giants are experiencing historic compression in their multiples. For example, Salesforce (CRM) is trading at a P/S ratio of 3.1 compared to its historical median of 8.1, placing it in the 0.1 percentile of its own history. Similarly, Comcast (CMCSA) and Cognizant (CTSH) have seen both their P/S and EV/EBITDA multiples fall to the absolute bottom (0.0 percentile) of their historical ranges.

percentiles compare each stock only with its own history and are not recommendations.

Mega-Cap Drawdown Check

While 45.0% of the broader market struggles in the red zone, mega-cap technology stocks continue to act as a critical buffer for the major indices. The transition of Alphabet Inc. (GOOGL) back to the green zone with a severity score of 1.8 indicates that institutional liquidity remains concentrated in top-tier tech.

This divergence between the average Drawdown Severity Score™ of 5.4 and the resilience of select mega-caps explains why major market indices may appear stable even as nearly half of all tracked equities suffer deep individual corrections. If these mega-cap pillars begin to break down and transition into the yellow or red zones, the broader market indices could face rapid downside correlation.

What to Watch Next Week

Heading into the final week of June 2026, our analytical focus remains on the critical boundary line of the red zone. With major defensive names like PepsiCo (PEP) and ONEOK (OKE) sitting immediately below a 5.0 severity score, any continued market-wide rotation could push these steady compounders into high-risk territory.

We are also monitoring whether stabilized names like Carvana Co. (CVNA) can maintain their yellow zone status or if their recovery will stall out. Investors should keep a close eye on these transition points, as they provide early signals of whether selling pressure is beginning to exhaust itself or merely rotating into defensive sectors.