What Happened?
A number of stocks jumped in the afternoon session after the US president announced a framework for a future deal with Greenland.
Wall Street saw a broad-based rally, with the S&P 500 gaining 1.2% as investor concerns over global trade tensions eased. The positive sentiment followed an announcement that reversed course on plans to impose tariffs linked to Greenland, which had caused steep market losses earlier in the week. This recovery reflected renewed optimism in the market, as the threat of a widening trade conflict appeared to subside, encouraging investors to move back into equities.
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:
- General Industrial Machinery company Luxfer (NYSE: LXFR) jumped 3.2%. Is now the time to buy Luxfer? Access our full analysis report here, it’s free.
- Specialty Equipment Distributors company Custom Truck One Source (NYSE: CTOS) jumped 3.2%. Is now the time to buy Custom Truck One Source? Access our full analysis report here, it’s free.
- Construction Machinery company Terex (NYSE: TEX) jumped 2.7%. Is now the time to buy Terex? Access our full analysis report here, it’s free.
- Commercial Building Products company Insteel (NYSE: IIIN) jumped 3%. Is now the time to buy Insteel? Access our full analysis report here, it’s free.
- Maintenance and Repair Distributors company DXP (NASDAQ: DXPE) jumped 3%. Is now the time to buy DXP? Access our full analysis report here, it’s free.
Zooming In On Luxfer (LXFR)
Luxfer’s shares are somewhat volatile and have had 11 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 11 months ago when the stock dropped 8.4% on the news that the company reported an underwhelming Q4 2024 result, as its full-year revenue and EBITDA guidance fell short of expectations. However, quarterly results were strong, with revenue, EPS, and EBITDA significantly surpassing analysts' estimates. Zooming out, we think this was a mixed quarter.
Luxfer is up 16.3% since the beginning of the year, and at $15.81 per share, has set a new 52-week high. Investors who bought $1,000 worth of Luxfer’s shares 5 years ago would now be looking at an investment worth $937.72.
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