BellRing Brands Stock Tumbled 28% – Opportunity or Trap?
BellRing Brands (BRBR) stock has fallen by 27.7% in less than a month, from $26.07 on 27th Jan, 2026 to $18.84 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, BRBR stock passes basic quality checks. But the bad news is that historically, the median return for the 12-month period following sharp dips was -7.3%, with median peak return of 18%. 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.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | 2.2% |
| 3M | -7.3% |
| 6M | -7.3% |
| 12M | -7.3% |
Historical Dip-Wise Details
BRBR had 3 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 18% median peak return within 1 year of dip event
- 30 days is the median time to peak return after a dip event
- -9.7% median max drawdown within 1 year of dip event
| 30 Day Dip | BRBR Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | BRBR | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | -7% | 18% | -10% | 30 | ||||
| 2052026 | -34% | -1% | -7% | 0% | -10% | 1 | ||
| 8052025 | -39% | 5% | -50% | 18% | -51% | 30 | ||
| 3192020 | -33% | -28% | 64% | 71% | -5% | 361 | ||
BellRing Brands 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) | 10.6% | Pass |
| Revenue Growth (3-Yr Avg) | 17.7% | Pass |
| Operating Cash Flow Margin (LTM) | 11.0% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 4.3 | |
| => Cash To Interest Expense Ratio | 0.9 |
Not sure if you can take a call on BRBR stock? Consider portfolio approach
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