What Happened?
Shares of clinical research company Fortrea Holdings (NASDAQ: FTRE) fell 6.3% in the afternoon session after negative news weighed on the broader healthcare sector, including a new U.S. government investigation into medical equipment imports. The U.S. Commerce Department initiated an investigation into the national security implications of importing a wide range of healthcare products, from surgical masks to pacemakers. This review raised the possibility of future tariffs or quotas on these goods.
The shares closed the day at $8.92, down 5.9% from previous close.
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 Fortrea? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Fortrea’s shares are extremely volatile and have had 63 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 22 days ago when the stock gained 4.5% on the news that Baird raised its price target on the stock to $14.00. This positive analyst action adds to a broader shift in sentiment for the clinical research organization. According to recent data covering six analysts, the average 12-month price target for Fortrea has risen by nearly 20% to $8.00, with a high estimate now matching Baird's at $14.00.
Fortrea is down 52.2% since the beginning of the year, and at $8.92 per share, it is trading 62.4% below its 52-week high of $23.73 from December 2024. Investors who bought $1,000 worth of Fortrea’s shares at the IPO in June 2023 would now be looking at an investment worth $296.35.
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