IPG Photonics Stock Jump Looks Great, But How Secure Is That Gain?
IPG Photonics (IPGP) stock is up 52.4% in 21 trading days. The rally reflects a Q4 earnings beat, new medical/defense ventures, and a share buyback, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where IPG Photonics stands today.
- Size: IPG Photonics is a $5.6 Bil company with $964 Mil in revenue currently trading at $131.70.
- Fundamentals: Last 12 month revenue growth of -7.5% and operating margin of 3.2%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.37
- Valuation: IPG Photonics stock is currently trading at P/E multiple of 216.7 and P/EBIT multiple of 178.9
- Has returned (median) 2.5% within a year following sharp dips since 2010. See IPGP Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell IPGP Stock
That brings us to the key consideration for investors chasing this rally: how resilient is IPGP stock if markets turn south? This is where our downturn resilience framework comes in. Suppose IPGP stock falls 20-30% to $92 – can investors comfortably hold on? Turns out, the stock has fared 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
- IPGP stock fell 67.9% from a high of $258.58 on 19 January 2021 to $83.02 on 12 October 2022 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 $153.91 on 16 February 2026 , and currently trades at $131.70
| IPGP | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -67.9% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- IPGP stock fell 31.5% from a high of $149.97 on 13 February 2020 to $102.74 on 3 April 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 May 2020
| IPGP | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -31.5% | -33.9% |
| Time to Full Recovery | 35 days | 148 days |
2018 Correction
- IPGP stock fell 59.9% from a high of $263.34 on 23 January 2018 to $105.65 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| IPGP | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -59.9% | -19.8% |
| Time to Full Recovery | Not Fully Recovered | 120 days |
2008 Global Financial Crisis
- IPGP stock fell 75.1% from a high of $27.47 on 30 January 2007 to $6.83 on 9 March 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 22 November 2010
| IPGP | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -75.1% | -56.8% |
| Time to Full Recovery | 623 days | 1,480 days |
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