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:
- Semiconductor Manufacturing company Entegris (NASDAQ: ENTG) jumped 7%. Is now the time to buy Entegris? Access our full analysis report here, it’s free.
- Specialty Equipment Distributors company Herc (NYSE: HRI) jumped 7.4%. Is now the time to buy Herc? Access our full analysis report here, it’s free.
- Medical Devices & Supplies - Specialty company Enovis (NYSE: ENOV) jumped 6.2%. Is now the time to buy Enovis? Access our full analysis report here, it’s free.
- Heavy Transportation Equipment company Commercial Vehicle Group (NASDAQ: CVGI) jumped 5.1%. Is now the time to buy Commercial Vehicle Group? Access our full analysis report here, it’s free.
- Patient Monitoring company DexCom (NASDAQ: DXCM) jumped 6.3%. Is now the time to buy DexCom? Access our full analysis report here, it’s free.
Zooming In On Herc (HRI)
Herc’s shares are extremely volatile and have had 34 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 28 days ago when the stock gained 5.1% after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Herc is down 32.1% since the beginning of the year, and at $126.38 per share, it is trading 47.2% below its 52-week high of $239.28 from November 2024. Investors who bought $1,000 worth of Herc’s shares 5 years ago would now be looking at an investment worth $4,616.
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.
