What Happened?

A number of stocks jumped in the afternoon session after the market experienced a sharp sector rotation, as investors fled growth-oriented technology stocks and piled into value-oriented names amid growing valuation concerns. This divergence was stark: the tech-heavy Nasdaq struggled, losing 0.2%, while the Dow rallied. This shift away from tech was triggered by a series of negative catalysts in the AI sector. AI cloud provider CoreWeave slid on disappointing guidance, while chip darling Nvidia pulled back after SoftBank sold its stake. This "hurt the AI trade," dragging down related names like Micron and Oracle. As capital left tech, it sought safety in "higher quality" defensive names. Health care giants like Merck, Amgen, and Johnson & Johnson saw significant buying, boosting the Dow.

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:

• Medical Devices & Supplies - Imaging, Diagnostics company Lantheus (NASDAQ: LNTH) jumped 5.3%. Is now the time to buy Lantheus? Access our full analysis report here, it’s free for active Edge members.
• Medical Devices & Supplies - Specialty company Enovis (NYSE: ENOV) jumped 3.2%. Is now the time to buy Enovis? Access our full analysis report here, it’s free for active Edge members.
• Healthcare Technology for Providers company Evolent Health (NYSE: EVH) jumped 3.4%. Is now the time to buy Evolent Health? Access our full analysis report here, it’s free for active Edge members.
• Drug Development Inputs & Services company Repligen (NASDAQ: RGEN) jumped 5.7%. Is now the time to buy Repligen? Access our full analysis report here, it’s free for active Edge members.
• Branded Pharmaceuticals company Corcept (NASDAQ: CORT) jumped 3.9%. Is now the time to buy Corcept? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Repligen (RGEN)

Repligen’s shares are very volatile and have had 27 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 14 days ago when the stock dropped 4.2% on the news that the company reported third-quarter results that beat revenue and profit expectations but lowered its full-year adjusted earnings per share (EPS) forecast. For the quarter, revenue grew 21.9% year-over-year to $188.8 million, ahead of analyst estimates of $181.9 million. Adjusted earnings came in at $0.46 per share, also beating the consensus forecast of $0.42. Despite the strong quarterly performance, the company's updated outlook for the full year appeared to concern investors. Management lowered its full-year adjusted EPS guidance to a midpoint of $1.67. While the company raised its full-year revenue guidance, the weaker earnings outlook likely drove the stock's decline as it overshadowed the otherwise positive results.

Repligen is up 7.7% since the beginning of the year, but at $154.03 per share, it is still trading 11.6% below its 52-week high of $174.24 from January 2025. Investors who bought $1,000 worth of Repligen’s shares 5 years ago would now be looking at an investment worth $791.07.

P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. Access the ticker here in our special report.