Is iRhythm Stock’s 22% Drop A Bargain?
iRhythm (IRTC) stock has fallen by 22.0% in less than a month, from $161.30 on 3rd Feb, 2026 to $125.85 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, IRTC stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 124% , with median peak return reaching 133%. 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 | -2.5% |
| 3M | 6.0% |
| 6M | 57.0% |
| 12M | 124.0% |
Historical Dip-Wise Details
IRTC had 5 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 133% median peak return within 1 year of dip event
- 308 days is the median time to peak return after a dip event
- -19% median max drawdown within 1 year of dip event
| 30 Day Dip | IRTC Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | IRTC | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 124% | 133% | -19% | 308 | ||||
| 8052024 | -31% | -5% | 124% | 133% | -19% | 364 | ||
| 8122021 | -30% | 4% | 228% | 264% | -9% | 235 | ||
| 4122021 | -50% | 9% | 89% | 109% | -48% | 357 | ||
| 2242021 | -34% | 3% | -30% | 5% | -73% | 2 | ||
| 3182020 | -35% | -27% | 127% | 365% | 0% | 308 | ||
iRhythm 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) | 26.2% | Pass |
| Revenue Growth (3-Yr Avg) | 22.1% | Pass |
| Operating Cash Flow Margin (LTM) | 10.8% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | -2.3 | |
| => Cash To Interest Expense Ratio | 44.4 |
Not sure if you can take a call on IRTC stock? Consider portfolio approach
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