Is Universal Technical Institute Stock Built to Withstand More Downside?
Universal Technical Institute (UTI) stock is down 20.4% in a day. The recent slide reflects renewed concerns around rising operating costs and projected profit decline from expansion investments for FY2026, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Universal Technical Institute stands today.
- Size: Universal Technical Institute is a $1.3 Bil company with $810 Mil in revenue currently trading at $23.46.
- Fundamentals: Last 12 month revenue growth of 14.6% and operating margin of 10.4%.
- Liquidity: Has Debt to Equity ratio of 0.2 and Cash to Assets ratio of 0.16
- Valuation: Universal Technical Institute stock is currently trading at P/E multiple of 20.2 and P/EBIT multiple of 14.0
These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell UTI Stock
That brings us to the key consideration for investors worried about this fall: how resilient is UTI stock if markets turn south? This is where our downturn resilience framework comes in. Suppose UTI stock falls another 20-30% to $16 – can investors comfortably hold on? Turns out, the stock has fared much 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
- UTI stock fell 51.2% from a high of $10.96 on 4 May 2022 to $5.35 on 26 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 November 2023
- Since then, the stock increased to a high of $35.90 on 2 June 2025 , and currently trades at $23.46
| UTI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -51.2% | -25.4% |
| Time to Full Recovery | 416 days | 464 days |
2020 Covid Pandemic
- UTI stock fell 61.9% from a high of $9.47 on 11 February 2020 to $3.61 on 18 March 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 14 April 2022
| UTI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -61.9% | -33.9% |
| Time to Full Recovery | 757 days | 148 days |
2018 Correction
- UTI stock fell 40.8% from a high of $3.85 on 10 May 2017 to $2.28 on 4 January 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 January 2019
| UTI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -40.8% | -19.8% |
| Time to Full Recovery | 368 days | 120 days |
2008 Global Financial Crisis
- UTI stock fell 66.2% from a high of $26.84 on 9 May 2007 to $9.08 on 5 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 30 January 2025
| UTI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -66.2% | -56.8% |
| Time to Full Recovery | 5810 days | 1480 days |
Feeling jittery about UTI stock? Consider portfolio approach.
Portfolios Over Individual Stock Picks
Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.
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.