What Happened?

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns. Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.

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:

• Marketing Software company Upland (NASDAQ: UPLD) jumped 5.8%. Is now the time to buy Upland? Access our full analysis report here, it’s free.
• Renewable Energy company EVgo (NASDAQ: EVGO) jumped 6.7%. Is now the time to buy EVgo? Access our full analysis report here, it’s free.
• Automation Software company SoundHound AI (NASDAQ: SOUN) jumped 5.9%. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Xerox (NASDAQ: XRX) jumped 5.9%. Is now the time to buy Xerox? Access our full analysis report here, it’s free.
• Analog Semiconductors company Monolithic Power Systems (NASDAQ: MPWR) jumped 5.3%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free.

Zooming In On EVgo (EVGO)

EVgo’s shares are extremely volatile and have had 61 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 6 months ago when the stock dropped 27.9% after it announced a secondary offering of nearly 23 million of its common stock by EVgo Holdings, an affiliate of LS Power Equity Partners. The company did not sell any shares in this offering and was not expected to receive any proceeds from the sale.

EVgo is up 9.1% since the beginning of the year, but at $4.57 per share, it is still trading 48.9% below its 52-week high of $8.94 from October 2024. Investors who bought $1,000 worth of EVgo’s shares at the IPO in November 2020 would now be looking at an investment worth $465.78.

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