What Happened?
A number of stocks fell in the afternoon session after worries over worsening trade relations with China were triggered by critical comments from President Donald Trump.
The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Therapeutics company Myriad Genetics (NASDAQ: MYGN) fell 3.7%. Is now the time to buy Myriad Genetics? Access our full analysis report here, it’s free for active Edge members.
- Healthcare Technology for Providers company Omnicell (NASDAQ: OMCL) fell 3.8%. Is now the time to buy Omnicell? Access our full analysis report here, it’s free for active Edge members.
- Medical Devices & Supplies - Specialty company Globus Medical (NYSE: GMED) fell 3.8%. Is now the time to buy Globus Medical? Access our full analysis report here, it’s free for active Edge members.
- Drug Development Inputs & Services company Repligen (NASDAQ: RGEN) fell 3%. Is now the time to buy Repligen? Access our full analysis report here, it’s free for active Edge members.
- Surgical Equipment & Consumables - Specialty company Teleflex (NYSE: TFX) fell 3.8%. Is now the time to buy Teleflex? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Globus Medical (GMED)
Globus Medical’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 6.6% on the news that the unexpected resignation of its President and CEO, Daniel Scavilla.
The medical device company announced that Scavilla resigned effective July 18 to pursue another opportunity. He will be replaced by Keith Pfeil, who was promoted from his role as Chief Operating Officer and Chief Financial Officer. While the company reaffirmed its full-year 2025 guidance for revenue and earnings per share, the sudden change in the corner office appears to have unsettled investors, leading to the stock's decline. The departure introduces a level of uncertainty, even with a well-regarded internal successor and positive sales momentum.
Globus Medical is down 30.6% since the beginning of the year, and at $56.81 per share, it is trading 39.1% below its 52-week high of $93.32 from January 2025. Investors who bought $1,000 worth of Globus Medical’s shares 5 years ago would now be looking at an investment worth $1,021.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
