Time To Buy The Dip In Huntington Ingalls Industries Stock?
Huntington Ingalls Industries (HII) stock has fallen by 12.6% in less than a month, from $453.73 on 2nd Mar, 2026 to $396.57 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, HII stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 46% , with median peak return reaching 47%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | 4.9% |
| 3M | 7.0% |
| 6M | 26.6% |
| 12M | 45.9% |
Historical Dip-Wise Details
HII had 6 events since 3/22/2011 where the dip threshold of -20% within 30 days was triggered
- 47% median peak return within 1 year of dip event
- 332 days is the median time to peak return after a dip event
- -14% median max drawdown within 1 year of dip event
| 30 Day Dip | HII Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | HII | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 46% | 47% | -14% | 332 | ||||
| 10312024 | -31% | -0% | 70% | 79% | -13% | 365 | ||
| 9102020 | -21% | 3% | 47% | 65% | 0% | 271 | ||
| 7092020 | -21% | 4% | 31% | 41% | -14% | 334 | ||
| 2262020 | -20% | -5% | -14% | 0% | -36% | 7 | ||
| 12212018 | -23% | -14% | 45% | 45% | -1% | 332 | ||
| 8102011 | -21% | -13% | 47% | 48% | -18% | 331 | ||
Huntington Ingalls Industries Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 8.2% | Pass |
| Revenue Growth (3-Yr Avg) | 5.4% | Pass |
| Operating Cash Flow Margin (LTM) | 9.6% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 8.4 | |
| => Cash To Interest Expense Ratio | 7.4 |
Not sure if you can take a call on HII stock? Consider portfolio approach
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