Should You Buy Nutanix Stock After 23% Drop?
Nutanix (NTNX) stock has fallen by 22.9% in less than a month, from $53.51 on 9th Jan, 2026 to $41.24 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, NTNX stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 0.4% , with median peak return reaching 34%. 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
- Why Has MP Stock Halved?
- Amazon.com Stock on the Edge: 3 Threats You Need to Know
- Has HCA Healthcare Stock Quietly Become a Value Opportunity?
- If The World Is On Fire, Why Is Gold Getting Cheaper?
- Lockheed Martin Stock: Is The Iran War Already Priced In?
- Should You Pay Attention To Chevron Stock’s Momentum?
| Period | Past Median Return |
|---|---|
| 1M | -6.1% |
| 3M | -2.0% |
| 6M | -2.0% |
| 12M | 0.4% |
Historical Dip-Wise Details
NTNX had 9 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 34% median peak return within 1 year of dip event
- 189 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 | 0% | 34% | -46% | 189 | ||||
| 12012025 | -30% | 3% | -8% | 13% | -12% | 39 | ||
| 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) | 17.4% | Pass |
| Revenue Growth (3-Yr Avg) | 17.0% | Pass |
| Operating Cash Flow Margin (LTM) | 32.7% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 23.6 | |
| => Cash To Interest Expense Ratio | 194.1 |
Not sure if you can take a call on NTNX stock? Consider portfolio approach
Why Stock Pickers Win More With Multi Asset Portfolios
Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which 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