What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
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:
- Building Materials company Valmont (NYSE: VMI) jumped 3.7%. Is now the time to buy Valmont? Access our full analysis report here, it’s free.
- Professional Tools and Equipment company Nordson (NASDAQ: NDSN) jumped 3.6%. Is now the time to buy Nordson? Access our full analysis report here, it’s free.
- Heavy Transportation Equipment company Oshkosh (NYSE: OSK) jumped 3.9%. Is now the time to buy Oshkosh? Access our full analysis report here, it’s free.
- Industrial & Environmental Services company Driven Brands (NASDAQ: DRVN) jumped 5.1%. Is now the time to buy Driven Brands? Access our full analysis report here, it’s free.
- Internet of Things company Rockwell Automation (NYSE: ROK) jumped 3.7%. Is now the time to buy Rockwell Automation? Access our full analysis report here, it’s free.
Zooming In On Driven Brands (DRVN)
Driven Brands’s shares are not very volatile and have only had 5 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 previous big move we wrote about was 9 days ago when the stock gained 3.1% on the news that stocks continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.
Driven Brands is up 13.1% since the beginning of the year, and at $18.12 per share, it is trading close to its 52-week high of $18.47 from May 2025. Investors who bought $1,000 worth of Driven Brands’s shares at the IPO in January 2021 would now be looking at an investment worth $678.92.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
