e.l.f. Beauty (ELF) stock has fallen by 18.6% in less than a month, from $94.83 on 24th Feb, 2026 to $77.15 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, ELF stock passes basic quality checks. But the bad news is that historically, the median return for the 12-month period following sharp dips was -14%, with median peak return of 33%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Trefis: ELF Stock Insights
Historical Median Returns Post Dips
Period
Past Median Return
1M
-0.3%
3M
4.4%
6M
4.2%
12M
-14.2%
Historical Dip-Wise Details
ELF had 12 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
33% median peak return within 1 year of dip event
108 days is the median time to peak return after a dip event
-41% median max drawdown within 1 year of dip event
Date
ELF
SPY
1Y
Peak
Return
Max
Drop
# Days
to Peak
Median
-14%
33%
-41%
108
11062025
-41%
2%
1%
24%
-11%
110
8072025
-20%
4%
-23%
47%
-32%
42
1242025
-21%
1%
-23%
33%
-55%
237
8012024
-22%
-1%
-34%
12%
-70%
7
4122024
-22%
1%
-68%
34%
-69%
76
9222023
-21%
-3%
6%
107%
-12%
279
3122020
-24%
-24%
139%
140%
-32%
364
12202018
-36%
-10%
86%
118%
-14%
327
10162018
-21%
-3%
66%
70%
-33%
342
6292018
-24%
0%
-6%
10%
-52%
10
1182018
-22%
6%
-54%
17%
-57%
36
8222017
-24%
1%
-38%
21%
-49%
105
e.l.f. Beauty 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)
16.7%
Pass
Revenue Growth (3-Yr Avg)
47.4%
Pass
Operating Cash Flow Margin (LTM)
16.2%
Pass
Leverage (see below)
–
Pass
=> Interest Coverage Ratio
5.9
=> Cash To Interest Expense Ratio
6.6
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