What Happened?
A number of stocks fell in the afternoon session after the U.S. government shutdown halted the release of crucial economic data, creating uncertainty for investors and policymakers.
In its second week, the shutdown had halted the flow of key federal figures on job creation and inflation. This came at a critical time, as the job market showed signs of slowing, and there were concerns that further declines could drag down the broader economy.
In addition, Jamie Dimon raised concerns about a market correction. He added, "I would give it a higher probability than I think is probably priced in the market and by others, so if the market is pricing in 10%, I would ... say it's more like 30%." Dimon's remarks are closely watched given his influence as head of one of the nation's largest banks.
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:
- Digital Media & Content Platforms company Rumble (NASDAQ: RUM) fell 4.5%. Is now the time to buy Rumble? Access our full analysis report here, it’s free for active Edge members.
- Advertising & Marketing Services company Magnite (NASDAQ: MGNI) fell 3.4%. Is now the time to buy Magnite? Access our full analysis report here, it’s free for active Edge members.
- Industrial & Environmental Services company CECO Environmental (NASDAQ: CECO) fell 3.4%. Is now the time to buy CECO Environmental? Access our full analysis report here, it’s free for active Edge members.
- Digital Media & Content Platforms company WEBTOON (NASDAQ: WBTN) fell 4.4%. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free for active Edge members.
- Government & Technical Consulting company ICF International (NASDAQ: ICFI) fell 5.3%. Is now the time to buy ICF International? Access our full analysis report here, it’s free for active Edge members.
Zooming In On ICF International (ICFI)
ICF International’s shares are not very volatile and have only had 7 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 2 months ago when the stock gained 9.1% on the news that it reported second-quarter results that showed stronger-than-expected profits, fueled by significant growth in its commercial energy business. Investors looked past a slight revenue miss, focusing instead on earnings per share of $1.66, which beat analyst forecasts. The company's commercial energy division delivered a remarkable 27% year-over-year revenue increase, offsetting challenges in the federal government sector. A strong book-to-bill ratio of 1.30 pointed to a healthy pipeline of future work. Management also reaffirmed its full-year guidance and signaled a return to growth in 2026, which further boosted investor sentiment.
ICF International is down 25.1% since the beginning of the year, and at $88.30 per share, it is trading 49.8% below its 52-week high of $176.06 from October 2024. Investors who bought $1,000 worth of ICF International’s shares 5 years ago would now be looking at an investment worth $1,314.
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