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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Atkore (ATKR) Stock Is Down Today

ATKR Cover Image

What Happened?

Shares of electrical safety company Atkore (NYSE: ATKR) fell 27.1% in the afternoon session after the company reported a significant drop in quarterly profit and announced the planned retirement of its CEO, Bill Waltz. Atkore disclosed that its net sales fell 10.6% compared to the same period last year, landing at $735 million. The company attributed this decline primarily to lower average selling prices for its products. Profitability took a substantial hit, as net income plummeted by over 65% to $43.0 million. This resulted in an earnings per share (EPS) of $1.25, which fell short of analyst forecasts. The news of the CEO's departure added to investor concerns, creating uncertainty about the company's future leadership.

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 Atkore? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Atkore’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for Atkore and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 19.3% on the news that the company reported weak fourth quarter results. Its full-year EBITDA guidance missed significantly, and its revenue fell short of Wall Street's estimates as both prices and volumes weakened. On the other hand, it was encouraging to see Atkore beat analysts' EPS expectations this quarter. Overall, this was a weaker quarter.

Atkore is down 30.2% since the beginning of the year, and at $56.81 per share, it is trading 52% below its 52-week high of $118.46 from August 2024. Investors who bought $1,000 worth of Atkore’s shares 5 years ago would now be looking at an investment worth $1,967.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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