Has SPSC Stock Become A Bargain After Dropping 24%?

SPS Commerce stock has fallen by 23.6% in less than a month, from levels of $142.50 on 7/17/2025 to $108.87 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, SPS Commerce passes basic quality checks and has returned (median) 82% in one year, and 110% as peak return following sharp dips (>30% in 30 days) historically. SPSC provides cloud-based supply chain and fulfillment automation solutions, enhancing order management and electronic communication for global trading partners.

Price behaviour is one thing, but what do the fundamentals say? Read Buy or Sell SPSC Stock to see the full picture.

That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.

Historical Median Returns Post Dips

Historical Dip-Wise Details

SPSC had 2 events since 1/1/2020 where the dip threshold of -30% within 30 days was triggered

• 110% median peak return within 1 year of dip event
• 184 days is the median time to peak return after a dip event
• -17% median max drawdown within 1 year of dip event

SPS Commerce 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.

Dip buying, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.