20% Drop in Nutanix Stock – Buy Opportunity?
Nutanix (NTNX) stock has fallen by 20.4% in less than a month, from $72.40 on 10th Nov, 2025 to $57.62 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, NTNX stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 9.8% , with median peak return reaching 42%. 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 | -8.2% |
| 3M | 4.0% |
| 6M | 0.5% |
| 12M | 9.8% |
Historical Dip-Wise Details
NTNX had 8 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 42% median peak return within 1 year of dip event
- 196 days is the median time to peak return after a dip event
- -46% median max drawdown within 1 year of dip event
| 30 Day Dip | NTNX Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | NTNX | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 10% | 42% | -46% | 196 | ||||
| 5262022 | -39% | -9% | 78% | 102% | -17% | 202 | ||
| 2272020 | -33% | -9% | 30% | 51% | -46% | 350 | ||
| 8142019 | -32% | -4% | 19% | 106% | -31% | 189 | ||
| 5312019 | -33% | -5% | -14% | 33% | -56% | 264 | ||
| 3012019 | -31% | 7% | -29% | 28% | -46% | 56 | ||
| 10092018 | -32% | -0% | -42% | 34% | -55% | 126 | ||
| 3092017 | -32% | 3% | 128% | 128% | -33% | 365 | ||
| 11142016 | -37% | 0% | 0% | 23% | -49% | 4 | ||
Nutanix 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) | 18.1% | Pass |
| Revenue Growth (3-Yr Avg) | 17.1% | Pass |
| Operating Cash Flow Margin (LTM) | 32.4% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 26.3 | |
| => Cash To Interest Expense Ratio | 237.9 |
Not sure if you can take a call on NTNX stock? Consider portfolio approach
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