Down 22%, Is BMI Stock A Buy Now?

BMI: Badger Meter logo
BMI
Badger Meter

Badger Meter stock has fallen by 21.7% in less than a month, from levels of $246.06 on 6/27/2025 to $192.58 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, Badger Meter passes basic quality checks. However, it only has one past instance where it dipped sharply (>30% in 30 days), and returned 120% in one year and 157% as peak return subsequently.
 
That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
 
Historical Median Returns Post Dips
 

Period Past Median Return
1M 33.5%
3M 45.7%
6M 48.6%
12M 120.1%

 
Historical Dip-Wise Details
 
BMI had 1 events since 1/1/2020 where the dip threshold of -30% within 30 days was triggered

  • 157% median peak return within 1 year of dip event
  • 338 days is the median time to peak return after a dip event
  • 0% median max drawdown within 1 year of dip event

30 Day Dip BMI Subsequent Performance
Date BMI SPY 1Y Peak
Return
Max
Drop
# Days
to Peak
Median     120% 157% 0% 338
3232020 -34% -32% 120% 157% 0% 338

 
Badger Meter 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.

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Quality Metrics Value Quality Check
Revenue Growth (LTM) 15.1% Pass
Revenue Growth (3-Yr Avg) 18.0% Pass
Operating Cash Flow Margin (LTM) 19.5% Pass

 
Dip buying, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.