Sterling Infrastructure Stock Sinks 20%, Rebound Coming?

STRL: Sterling Infrastructure logo
STRL
Sterling Infrastructure

Sterling Infrastructure (STRL) stock has fallen by 20.3% in less than a month, from $411.07 on 5th Nov, 2025 to $327.78 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, STRL stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 34% , with median peak return reaching 79%. 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
 

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Period Past Median Return
1M 2.8%
3M 25.3%
6M 32.1%
12M 34.4%

 
Historical Dip-Wise Details
 
STRL had 6 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered

  • 79% median peak return within 1 year of dip event
  • 238 days is the median time to peak return after a dip event
  • -30% median max drawdown within 1 year of dip event

30 Day Dip STRL Subsequent Performance
Date STRL SPY 1Y Peak
Return
Max
Drop
# Days
to Peak
Median     34% 79% -30% 238
2202025 -30% 3% 158% 231% -16% 258
3122020 -33% -24% 156% 167% -20% 313
5122015 -30% 1% 48% 96% 0% 219
1272015 -37% -0% 21% 61% -39% 324
12122014 -33% 1% 4% 12% -59% 14
4172014 -30% -1% -38% 45% -65% 77

 
Sterling Infrastructure 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) 6.2% Pass
Revenue Growth (3-Yr Avg) 13.1% Pass
Operating Cash Flow Margin (LTM) 19.2% Pass
Leverage (see below) Pass
=> Interest Coverage Ratio 23.2  
=> Cash To Interest Expense Ratio 15.2  

Not sure if you can take a call on STRL stock? Consider portfolio approach

Multi Asset Portfolios Offer More Upside With Less Risk

Individual picks are volatile but diversified assets offset each other. A multi asset portfolio helps you stay the course capture upside and reduce downside.

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