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:
- Semiconductor Manufacturing company Marvell Technology (NASDAQ: MRVL) jumped 5.3%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Analog Semiconductors company onsemi (NASDAQ: ON) jumped 5.4%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
- Apparel and Accessories company ThredUp (NASDAQ: TDUP) jumped 5%. Is now the time to buy ThredUp? Access our full analysis report here, it’s free.
- Online Retail company Wayfair (NYSE: W) jumped 5.1%. Is now the time to buy Wayfair? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Teradyne (NASDAQ: TER) jumped 5.7%. Is now the time to buy Teradyne? Access our full analysis report here, it’s free.
Zooming In On Teradyne (TER)
Teradyne’s shares are very volatile and have had 27 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 previous big move we wrote about was 20 days ago when the stock gained 6.5% on the news that 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.
Teradyne is down 30.7% since the beginning of the year, and at $87.70 per share, it is trading 46.2% below its 52-week high of $163 from July 2024. Investors who bought $1,000 worth of Teradyne’s shares 5 years ago would now be looking at an investment worth $1,139.
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