What Happened?

A number of stocks jumped in the afternoon session after the Supreme Court struck down sweeping Trump tariffs, bringing potential relief to companies impacted by international trade disputes. 

The ruling was seen as a significant win for sectors reliant on global supply chains, as tariffs, which are essentially taxes on imported goods, have increased operating costs and squeezed profit margins for many U.S. companies. The removal of these levies is expected to lower expenses for manufacturers and retailers, potentially leading to more competitive pricing and stronger earnings. This positive development appeared to outweigh earlier concerns in the session regarding reports of slowing economic growth and rising inflation, with the broader market, including the S&P 500, ticking higher on the news. In response to the ruling, the Trump administration announced plans to impose a new 10% global tariff.

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:

• Consumer Discretionary - Apparel and Accessories company Oxford Industries (NYSE: OXM) jumped 4.2%. Is now the time to buy Oxford Industries? Access our full analysis report here, it’s free.
• Consumer Discretionary - Footwear company Crocs (NASDAQ: CROX) jumped 3.3%. Is now the time to buy Crocs? Access our full analysis report here, it’s free.
• Consumer Discretionary - Specialized Consumer Services company WeightWatchers (NASDAQ: WW) jumped 3.7%. Is now the time to buy WeightWatchers? Access our full analysis report here, it’s free.
• Consumer Discretionary - Media company Scholastic (NASDAQ: SCHL) jumped 5%. Is now the time to buy Scholastic? Access our full analysis report here, it’s free.
• Consumer Discretionary - Toys and Electronics company Bark (NYSE: BARK) jumped 4.7%. Is now the time to buy Bark? Access our full analysis report here, it’s free.

Zooming In On Scholastic (SCHL)

Scholastic’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 gained 21.3% on the news that the company reported fourth-quarter financial results that beat Wall Street's expectations and provided strong guidance for the upcoming fiscal year. The publishing and education company reported fourth-quarter adjusted earnings of 87 cents per share, which surpassed the analyst consensus estimate of 85 cents. Quarterly revenue also exceeded expectations, coming in at $508.3 million against a forecast of $494.58 million, marking a 7% increase from the prior year. Investors were further encouraged by the company's optimistic forecast for its fiscal year 2026. Scholastic provided guidance for revenue to grow between 2% and 4% and targeted significant growth in Adjusted EBITDA, a measure of operating profitability, to a range of $160 million to $170 million. This positive outlook, combined with the strong quarterly performance, fueled the stock's significant gain.

Scholastic is up 8.5% since the beginning of the year, and at $32.50 per share, it is trading close to its 52-week high of $35.55 from January 2026. Investors who bought $1,000 worth of Scholastic’s shares 5 years ago would now be looking at an investment worth $1,118.

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