Time To Buy The Dip In Rambus Stock?
Rambus (RMBS) stock has fallen by 20.0% in less than a month, from $99.66 on 27th Feb, 2026, to $79.73 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, RMBS stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 32%, with median peak return reaching 58%. 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
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| Period | Past Median Return |
|---|---|
| 1M | 1.8% |
| 3M | 9.6% |
| 6M | 21.5% |
| 12M | 31.5% |
Historical Dip-Wise Details
RMBS had 20 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 58% median peak return within 1 year of dip event
- 305 days is the median time to peak return after a dip event
- -17% median max drawdown within 1 year of dip event
| 30 Day Dip | RMBS Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | RMBS | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 32% | 58% | -17% | 305 | ||||
| 3052026 | -27% | -1% | -13% | 4% | -13% | 20 | ||
| 4012025 | -24% | -8% | 52% | 141% | -18% | 295 | ||
| 8012024 | -21% | -1% | 59% | 67% | -16% | 363 | ||
| 2062024 | -20% | 5% | 21% | 23% | -31% | 365 | ||
| 6162022 | -23% | -15% | 188% | 221% | -1% | 344 | ||
| 5062022 | -21% | -9% | 84% | 97% | -20% | 329 | ||
| 3092020 | -21% | -17% | 67% | 87% | -21% | 347 | ||
| 12242018 | -21% | -16% | 92% | 99% | 0% | 317 | ||
| 10102018 | -22% | -4% | 42% | 49% | -23% | 338 | ||
| 9222015 | -23% | -7% | 16% | 33% | -7% | 350 | ||
| 10242014 | -20% | -2% | -2% | 48% | -4% | 230 | ||
| 7312014 | -21% | -1% | 14% | 34% | -12% | 315 | ||
| 9032013 | -22% | -3% | 44% | 77% | -1% | 290 | ||
| 11132012 | -21% | -4% | 105% | 143% | -7% | 251 | ||
| 7262012 | -26% | 4% | 149% | 171% | 0% | 361 | ||
| 3022012 | -22% | 4% | -18% | 1% | -42% | 17 | ||
| 11162011 | -54% | 8% | -36% | 29% | -45% | 70 | ||
| 8082011 | -27% | -11% | -55% | 76% | -62% | 92 | ||
| 5162011 | -25% | 0% | -69% | 25% | -69% | 176 | ||
| 6092010 | -24% | -10% | -24% | 21% | -28% | 253 | ||
Rambus 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) | 27.1% | Pass |
| Revenue Growth (3-Yr Avg) | 16.4% | Pass |
| Operating Cash Flow Margin (LTM) | 50.9% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 206.4 | |
| => Cash To Interest Expense Ratio | 554.9 |
Not sure if you can take a call on RMBS stock? Consider portfolio approach
Portfolios Are The Smarter Way To Invest
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.
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