Merit Medical Systems Stock To $90?
Merit Medical Systems (MMSI) stock has fallen by 16.0% in less than a month, from $82.98 on 18th Feb, 2026 to $69.71 now. What comes next? We believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive opinion of the stock. Read Buy or Sell Merit Medical Systems Stock to see how we arrive at this opinion.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, MMSI stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 34%, with median peak return reaching 39%. 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.
Historical Median Returns Post Dips
| Period | Past Median Return |
|---|---|
| 1M | 4.1% |
| 3M | 9.2% |
| 6M | 19.0% |
| 12M | 33.5% |
Historical Dip-Wise Details
MMSI had 9 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 39% median peak return within 1 year of dip event
- 353 days is the median time to peak return after a dip event
- -2.6% median max drawdown within 1 year of dip event
| 30 Day Dip | MMSI Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | MMSI | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 34% | 39% | -3% | 353 | ||||
| 8242023 | -20% | -3% | 39% | 39% | -6% | 365 | ||
| 6162022 | -21% | -15% | 60% | 65% | -0% | 356 | ||
| 3162020 | -29% | -25% | 134% | 135% | 0% | 332 | ||
| 7262019 | -28% | 5% | 8% | 13% | -50% | 355 | ||
| 10232015 | -25% | 6% | 31% | 39% | -12% | 353 | ||
| 9052014 | -20% | 1% | 89% | 113% | -3% | 326 | ||
| 4262013 | -22% | 1% | 34% | 69% | -1% | 182 | ||
| 8082011 | -27% | -11% | 10% | 15% | -9% | 22 | ||
| 2192010 | -23% | -2% | 7% | 24% | -3% | 364 | ||
Merit Medical Systems 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) | 11.8% | Pass |
| Revenue Growth (3-Yr Avg) | 9.6% | Pass |
| Operating Cash Flow Margin (LTM) | 19.6% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 7.5 | |
| => Cash To Interest Expense Ratio | 16.9 |
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