What Happened?
A number of stocks jumped in the afternoon session after investors continued to pile into value-oriented names amid growing valuation concerns. This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced. Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over. The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.
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:
- Apparel and Accessories company PVH (NYSE: PVH) jumped 4%. Is now the time to buy PVH? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company Under Armour (NYSE: UAA) jumped 3.3%. Is now the time to buy Under Armour? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company Kontoor Brands (NYSE: KTB) jumped 2.8%. Is now the time to buy Kontoor Brands? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company Oxford Industries (NYSE: OXM) jumped 2.7%. Is now the time to buy Oxford Industries? Access our full analysis report here, it’s free for active Edge members.
- Travel and Vacation Providers company Hilton Grand Vacations (NYSE: HGV) jumped 3%. Is now the time to buy Hilton Grand Vacations? Access our full analysis report here, it’s free for active Edge members.
Zooming In On PVH (PVH)
PVH’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 3.8% on the news that BTIG initiated coverage on the stock with a 'buy' rating. The analyst firm set a price target of $100.00, which suggested a potential upside of 22.19% within a year. This positive view of the company was shared by others in the apparel sector. Separately, Raymond James upgraded peer company Capri Holdings from 'Market Perform' to 'Outperform', signaling broader positive sentiment within the industry.
PVH is down 23.9% since the beginning of the year, and at $79.84 per share, it is trading 29.3% below its 52-week high of $112.86 from December 2024. Investors who bought $1,000 worth of PVH’s shares 5 years ago would now be looking at an investment worth $1,221.
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