What Happened?
Shares of life sciences company Bio-Techne (NASDAQ: TECH) fell 3.3% in the afternoon session after the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs. The decline was not driven by company-specific news but rather widespread negative sentiment as investors returned from the Labor Day holiday. Major U.S. indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, all tumbled. The downturn was fueled by a mix of factors, including rising Treasury yields and fresh uncertainty after a court decision ruled most of President Trump's tariffs illegal. Although the tariffs remain in place pending appeal, the news contributed to market turbulence on the first trading day of what is historically the stock market's most challenging month.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Bio-Techne? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Bio-Techne’s shares are quite volatile and have had 19 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 11 days ago when the stock gained 5.8% on the news that 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.
Bio-Techne is down 26.1% since the beginning of the year, and at $52.81 per share, it is trading 34.3% below its 52-week high of $80.36 from September 2024. Investors who bought $1,000 worth of Bio-Techne’s shares 5 years ago would now be looking at an investment worth $807.51.
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.
