What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices.
Additionally, dovish signals from Federal Reserve Chair Jerome Powell in his Congressional testimony, reaffirming a "wait-and-see" approach on interest rates, further calmed markets, improving investors' appetite for stocks and other risk assets.
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:
- Renewable Energy company SolarEdge (NASDAQ: SEDG) jumped 10.4%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.
- Healthcare Technology for Patients company GoodRx (NASDAQ: GDRX) jumped 5.7%. Is now the time to buy GoodRx? Access our full analysis report here, it’s free.
- E-commerce Software company BigCommerce (NASDAQ: BIGC) jumped 5.5%. Is now the time to buy BigCommerce? Access our full analysis report here, it’s free.
- Video Conferencing company 8x8 (NASDAQ: EGHT) jumped 6.1%. Is now the time to buy 8x8? Access our full analysis report here, it’s free.
- Gig Economy company Angi (NASDAQ: ANGI) jumped 5.2%. Is now the time to buy Angi? Access our full analysis report here, it’s free.
Zooming In On SolarEdge (SEDG)
SolarEdge’s shares are extremely volatile and have had 97 moves greater than 5% over the last year. But moves this big are rare even for SolarEdge and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 40% on the news that a U.S. Senate panel proposed phasing out solar and wind energy tax credits by 2028, raising concerns about future profitability and project viability for solar companies. The phasing out is expected to begin as early as 2026, diminishing the financial incentives that have been critical drivers of growth in the renewable energy sector.
SolarEdge is up 17.7% since the beginning of the year, but at $17.42 per share, it is still trading 47.6% below its 52-week high of $33.25 from June 2024. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $117.32.
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