e.l.f. Beauty (ELF) stock has fallen by 35.5% in less than a month, from $94.65 on 26th Feb, 2026 to $61.05 now. What comes next? We believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive opinion of the stock. Read Buy or Sell e.l.f. Beauty Stock to see how we arrive at this opinion.
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. Historically, the median return for the 12-month period following sharp dips was 28%, with median peak return reaching 66%. 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.
Trefis: ELF Stock Insights
Historical Median Returns Post Dips
Period
Past Median Return
1M
-0.7%
3M
10.0%
6M
6.5%
12M
28.2%
Historical Dip-Wise Details
ELF had 6 events since 9/22/2016 where the dip threshold of -30% within 30 days was triggered
66% median peak return within 1 year of dip event
277 days is the median time to peak return after a dip event
-20% median max drawdown within 1 year of dip event
Date
ELF
SPY
1Y
Peak
Return
Max
Drop
# Days
to Peak
Median
28%
66%
-20%
277
11062025
-41%
2%
-13%
24%
-13%
110
2032025
-31%
-1%
-20%
57%
-47%
227
8122024
-32%
-2%
-19%
19%
-65%
11
3162020
-41%
-25%
206%
212%
-12%
364
12202018
-36%
-10%
86%
118%
-14%
327
8092018
-40%
6%
69%
76%
-26%
364
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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