Time To Buy The Dip In Dick’s Sporting Goods Stock?
Dick’s Sporting Goods (DKS) stock has fallen by 12.6% in less than a month, from $214.76 on 25th Feb, 2026, to $187.78 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, DKS stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 41%, with the median peak return reaching 53%. We define a sharp dip as a stock going down 20% or more in less than a 30-day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
| Period | Past Median Return |
|---|---|
| 1M | 0.5% |
| 3M | 4.4% |
| 6M | 15.5% |
| 12M | 40.8% |
Historical Dip-Wise Details
DKS had 11 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 53% median peak return within 1 year of dip event
- 348 days is the median time to peak return after a dip event
- -14% median max drawdown within 1 year of dip event
| 30 Day Dip | DKS Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | DKS | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 41% | 53% | -14% | 348 | ||||
| 3122025 | -22% | -8% | -2% | 22% | -14% | 217 | ||
| 8232023 | -20% | -1% | 121% | 117% | -8% | 364 | ||
| 5112022 | -22% | -15% | 65% | 76% | -18% | 348 | ||
| 12162021 | -24% | 0% | 14% | 25% | -28% | 361 | ||
| 2262020 | -21% | -5% | 95% | 108% | -57% | 350 | ||
| 12242018 | -21% | -16% | 64% | 68% | 0% | 353 | ||
| 8152017 | -33% | 2% | 38% | 45% | -9% | 288 | ||
| 6022017 | -21% | 4% | -9% | 0% | -40% | 10 | ||
| 11162015 | -22% | 4% | 41% | 53% | -16% | 311 | ||
| 5212014 | -20% | 2% | 27% | 39% | -2% | 320 | ||
| 8102011 | -23% | -13% | 73% | 75% | 0% | 359 | ||
Dick’s Sporting Goods 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) | 10.9% | Pass |
| Revenue Growth (3-Yr Avg) | 7.1% | Pass |
| Operating Cash Flow Margin (LTM) | 7.5% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 23.9 | |
| => Cash To Interest Expense Ratio | 13.9 |
Not sure if you can take a call on DKS stock? Consider portfolio approach
Portfolios Win When Stock Picks Fall Short
Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.