What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) 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:
- Maintenance and Repair Distributors company MSC Industrial (NYSE: MSM) jumped 5.6%. Is now the time to buy MSC Industrial? Access our full analysis report here, it’s free.
- Law Enforcement Suppliers company Byrna (NASDAQ: BYRN) jumped 5.9%. Is now the time to buy Byrna? Access our full analysis report here, it’s free.
- Renewable Energy company American Superconductor (NASDAQ: AMSC) jumped 6%. Is now the time to buy American Superconductor? Access our full analysis report here, it’s free.
- Engineered Components and Systems company NN (NASDAQ: NNBR) jumped 7%. Is now the time to buy NN? Access our full analysis report here, it’s free.
- Travel and Vacation Providers company United Airlines (NASDAQ: UAL) jumped 5.9%. Is now the time to buy United Airlines? Access our full analysis report here, it’s free.
Zooming In On NN (NNBR)
NN’s shares are extremely volatile and have had 55 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 4 months ago when the stock gained 20.2% as the company reported impressive preliminary guidance, with full-year 2024 new business wins expected to exceed the high end of its previous guidance.
Management added, "We will continue this pace of new business acquisition into 2025 and 2026 and have a $720 million pipeline to support it. 2025 is off to a great start with the simultaneous launch of fifty [50] new programs during the first quarter."
NN is down 34% since the beginning of the year, and at $2.09 per share, it is trading 50.9% below its 52-week high of $4.25 from December 2024. Investors who bought $1,000 worth of NN’s shares 5 years ago would now be looking at an investment worth $434.37.
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