What Happened?
Shares of pool equipment and automation systems manufacturer Hayward Holdings (NYSE: HAYW) fell 2.9% in the afternoon session after concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
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 Hayward? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Hayward’s shares are not very volatile and have only had 6 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 biggest move we wrote about over the last year was 11 months ago when the stock gained 8.2% on the news that the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' revenue and EBITDA expectations. In addition, it lifted its full-year revenue and EBITDA guidance. Zooming out, we think this was a strong quarter.
Hayward is up 4% since the beginning of the year, and at $15.79 per share, it is trading close to its 52-week high of $16.60 from October 2024. Investors who bought $1,000 worth of Hayward’s shares at the IPO in March 2021 would now be looking at an investment worth $928.53.
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