e.l.f. Beauty (ELF) stock has fallen by 13.4% in less than a month, from $69.86 on 15th Apr, 2026 to $60.49 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 -21%, 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
0.2%
3M
3.7%
6M
1.9%
12M
-21.0%
Historical Dip-Wise Details
ELF had 13 events since 9/22/2016 where the dip threshold of -20% within 30 days was triggered
33% median peak return within 1 year of dip event
105 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
-21%
33%
-41%
105
3302026
-27%
-7%
2%
18%
0%
16
11062025
-41%
2%
-21%
24%
-22%
110
8072025
-20%
4%
-39%
47%
-41%
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
1Y Refers to 1 year or time since recent dip, whichever is smaller
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
Not sure if you can take a call on ELF stock? Consider portfolio approach
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