What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Construction and Maintenance Services company Limbach (NASDAQ:LMB) jumped 5.2%. Is now the time to buy Limbach? Access our full analysis report here, it’s free.
- Ground Transportation company ArcBest (NASDAQ:ARCB) jumped 5.1%. Is now the time to buy ArcBest? Access our full analysis report here, it’s free.
- General Industrial Machinery company L.B. Foster (NASDAQ:FSTR) jumped 6.4%. Is now the time to buy L.B. Foster? Access our full analysis report here, it’s free.
- Ground Transportation company Universal Logistics (NASDAQ:ULH) jumped 5.2%. Is now the time to buy Universal Logistics? Access our full analysis report here, it’s free.
- General Industrial Machinery company John Bean (NYSE:JBTM) jumped 5.2%. Is now the time to buy John Bean? Access our full analysis report here, it’s free.
Zooming In On L.B. Foster (FSTR)
L.B. Foster’s shares are very volatile and have had 21 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 10 months ago when the stock dropped 21.5% on the news that the company reported weak second-quarter 2024 earnings. L.B. Foster exceeded analysts' revenue expectations.
On the other hand, its EPS missed, and its EBITDA guidance for the full year fell short of Wall Street's estimates. Overall, this quarter could have been better.
L.B. Foster is down 26.7% since the beginning of the year, and at $19.45 per share, it is trading 34% below its 52-week high of $29.45 from December 2024. Investors who bought $1,000 worth of L.B. Foster’s shares 5 years ago would now be looking at an investment worth $1,440.
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