Regal Rexnord just took a heavy hit. The stock closed at US$220.04 before earnings and then dropped about 17% to roughly US$183.24. That is a sharp reset for a company that had already been under pressure over the past month.

The twist is that the headline numbers did not collapse. Q2 2026 basic earnings per share landed at about US$1.75 on revenue of roughly US$1.56b, with trailing P/E around 37.6x. The key question now is whether this selloff reflects short term fear or a longer term reassessment of growth, margins and balance sheet risk.

Is Regal Rexnord now a mispriced quality stock after this 17% drop, or is the market rightly worried about rich earnings multiples and weak interest coverage? Compare the current share price to fair…