What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
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:
- Boat & Marine Retailer company MarineMax (NYSE: HZO) jumped 6.9%. Is now the time to buy MarineMax? Access our full analysis report here, it’s free.
- Sit-Down Dining company Bloomin' Brands (NASDAQ: BLMN) jumped 13.6%. Is now the time to buy Bloomin' Brands? Access our full analysis report here, it’s free.
- Traditional Fast Food company Portillo's (NASDAQ: PTLO) jumped 5.7%. Is now the time to buy Portillo's? Access our full analysis report here, it’s free.
- Perishable Food company Beyond Meat (NASDAQ: BYND) jumped 7%. Is now the time to buy Beyond Meat? Access our full analysis report here, it’s free.
- Personal Care company Estée Lauder (NYSE: EL) jumped 7.9%. Is now the time to buy Estée Lauder? Access our full analysis report here, it’s free.
Zooming In On Bloomin' Brands (BLMN)
Bloomin' Brands’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. But moves this big are rare even for Bloomin' Brands and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 8.6% on the news that the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East.
This development has sent crude oil prices surging, as investors fear potential disruptions to global oil supply and a wider regional conflict.
Bloomin' Brands is down 23.7% since the beginning of the year, and at $9.13 per share, it is trading 56.2% below its 52-week high of $20.85 from July 2024. Investors who bought $1,000 worth of Bloomin' Brands’s shares 5 years ago would now be looking at an investment worth $756.01.
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