Hawkins Stock Has Fallen 26%, Time to Enter?
Hawkins (HWKN) stock has fallen by 26.3% in less than a month, from $169.33 on 27th Oct, 2025 to $124.72 now. Should you buy this dip? Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, HWKN stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 83% , with median peak return reaching 91%. We define sharp dip as stock going down 30% 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 | 13.1% |
| 3M | 24.8% |
| 6M | 39.1% |
| 12M | 82.6% |
Historical Dip-Wise Details
HWKN had 2 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 91% median peak return within 1 year of dip event
- 182 days is the median time to peak return after a dip event
- 0% median max drawdown within 1 year of dip event
| 30 Day Dip | HWKN Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | HWKN | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 83% | 91% | 0% | 182 | ||||
| 11142025 | -31% | 0% | 0% | 1% | 0% | 5 | ||
| 3182020 | -33% | -27% | 165% | 182% | 0% | 359 | ||
Hawkins 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) | 11.9% | Pass |
| Revenue Growth (3-Yr Avg) | 5.3% | Pass |
| Operating Cash Flow Margin (LTM) | 11.8% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 12.4 | |
| => Cash To Interest Expense Ratio | 1.1 |
Not sure if you can take a call on HWKN stock? Consider portfolio approach
Portfolios Over Individual Stock Picks
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops
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? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.