What Happened?
A number of stocks jumped in the afternoon session 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.
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:
- Shelf-Stable Food company B&G Foods (NYSE: BGS) jumped 6%. Is now the time to buy B&G Foods? Access our full analysis report here, it’s free.
- Broadcasting company AMC Networks (NASDAQ: AMCX) jumped 5.6%. Is now the time to buy AMC Networks? Access our full analysis report here, it’s free.
- Waste Management company Enviri (NYSE: NVRI) jumped 5.7%. Is now the time to buy Enviri? Access our full analysis report here, it’s free.
- Online Marketplace company Etsy (NASDAQ: ETSY) jumped 5.1%. Is now the time to buy Etsy? Access our full analysis report here, it’s free.
- Consumer Subscription company Udemy (NASDAQ: UDMY) jumped 5.9%. Is now the time to buy Udemy? Access our full analysis report here, it’s free.
Zooming In On B&G Foods (BGS)
B&G Foods’s shares are somewhat volatile and have had 13 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 biggest move we wrote about over the last year was 7 months ago when the stock dropped 19.4% on the news that the company reported underwhelming third-quarter 2024 earnings. Its sales and earnings missed Wall Street's estimates.
Given the poor results, it lowered its full-year revenue and EPS guidance, suggesting the weaknesses recorded during the quarter might persist as management called out a slower-than-expected recovery in sales trends.
While the weak trends partly explained the declining volumes during the quarter, the sale of the Green Giant U.S. shelf-stable product line also had a negative impact. Overall, this was a weaker quarter.
B&G Foods is down 40.5% since the beginning of the year, and at $4.25 per share, it is trading 55.7% below its 52-week high of $9.59 from June 2024. Investors who bought $1,000 worth of B&G Foods’s shares 5 years ago would now be looking at an investment worth $177.39.
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