Can Huntsman Stock Recover If Markets Fall?
Huntsman (HUN) stock is down 16.7% in 21 trading days. The recent slide reflects renewed concerns around weak demand across its Polyurethanes and Performance Products segments, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Huntsman stands today.
- Size: Huntsman is a $2.0 Bil company with $5.8 Bil in revenue currently trading at $11.44.
- Fundamentals: Last 12 month revenue growth of -3.5% and operating margin of -0.4%.
- Liquidity: Has Debt to Equity ratio of 1.22 and Cash to Assets ratio of 0.07
- Valuation: Huntsman stock is currently trading at P/E multiple of -6.0 and P/EBIT multiple of -16.3
- Has returned (median) 62.6% within a year following sharp dips since 2010. See HUN Dip Buy Analysis.
These metrics point to a Very Weak operational performance, alongside Very Low valuation – making the stock Unattractive. For details, see Buy or Sell HUN Stock
That brings us to the key consideration for investors worried about this fall: how resilient is HUN stock if markets turn south? This is where our downturn resilience framework comes in. Suppose HUN stock falls another 20-30% to $8 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- HUN stock fell 45.0% from a high of $41.20 on 18 February 2022 to $22.68 on 25 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $26.60 on 7 March 2024 , and currently trades at $11.44
| HUN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.0% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- HUN stock fell 46.7% from a high of $24.16 on 1 January 2020 to $12.87 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 October 2020
| HUN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.7% | -33.9% |
| Time to Full Recovery | 199 days | 148 days |
2018 Correction
- HUN stock fell 50.8% from a high of $35.29 on 26 January 2018 to $17.37 on 31 May 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 January 2022
| HUN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -50.8% | -19.8% |
| Time to Full Recovery | 948 days | 120 days |
2008 Global Financial Crisis
- HUN stock fell 92.5% from a high of $28.07 on 9 July 2007 to $2.11 on 23 February 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 6 June 2014
| HUN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -92.5% | -56.8% |
| Time to Full Recovery | 1,929 days | 1,480 days |
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