Should You Buy Huntington Ingalls Industries Stock After 21% Drop?
Huntington Ingalls Industries (HII) stock has fallen by 20.7% in less than a month, from $411.35 on 8th Apr, 2026 to $326.13 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
| 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 | ||
1Y Refers to 1 year or time since recent dip, whichever is smaller
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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Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.