Time To Buy The Dip In GeneDx Stock?
GeneDx (WGS) stock has fallen by 10.2% in less than a month, from $94.78 on 10th Feb, 2026 to $85.10 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, WGS stock passes basic quality checks. But the bad news is that historically, the median return for the 12-month period following sharp dips was -29%, with median peak return of 22%. 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
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| Period | Past Median Return |
|---|---|
| 1M | -18.1% |
| 3M | -28.6% |
| 6M | -43.9% |
| 12M | -28.6% |
Historical Dip-Wise Details
WGS had 9 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 22% median peak return within 1 year of dip event
- 7 days is the median time to peak return after a dip event
- -82% median max drawdown within 1 year of dip event
| 30 Day Dip | WGS Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | WGS | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | -29% | 22% | -82% | 7 | ||||
| 1122026 | -28% | 2% | -29% | 0% | -38% | 0 | ||
| 4012025 | -25% | -8% | 1% | 98% | -33% | 238 | ||
| 2072025 | -22% | 1% | 51% | 181% | -5% | 291 | ||
| 8212023 | -24% | -0% | 644% | 666% | -73% | 364 | ||
| 3172023 | -21% | -6% | -29% | 41% | -89% | 3 | ||
| 11162022 | -27% | 5% | -93% | 0% | -95% | 0 | ||
| 11232021 | -21% | 8% | -92% | 6% | -92% | 3 | ||
| 7272021 | -20% | 4% | -84% | 22% | -88% | 15 | ||
| 3252021 | -35% | 0% | -81% | 16% | -82% | 7 | ||
GeneDx 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) | 40.0% | Pass |
| Revenue Growth (3-Yr Avg) | 25.7% | Pass |
| Operating Cash Flow Margin (LTM) | 7.8% | Pass |
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