Dj Cfo Bardos Surrenders 4170 Of Shoals Technologies Group Inc >Shls

What Happened?

A number of stocks fell in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. 

While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%.This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.

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:

• Electrical Systems company Atkore fell 14.3%. Is now the time to buy Atkore? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company Shoals fell 5.6%. Is now the time to buy Shoals? Access our full analysis report here, it’s free for active Edge members.
• Construction and Maintenance Services company Comfort Systems fell 4.2%. Is now the time to buy Comfort Systems? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company Array fell 5%. Is now the time to buy Array? Access our full analysis report here, it’s free for active Edge members.
• Defense Contractors company Kratos fell 3.9%. Is now the time to buy Kratos? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Atkore (ATKR)

Atkore’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Atkore and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 27.1% on the news that the company reported a significant drop in quarterly profit and announced the planned retirement of its 

CEO, Bill Waltz. Atkore disclosed that its net sales fell 10.6% compared to the same period last year, landing at $735 million. The company attributed this decline primarily to lower average selling prices for its products. Profitability took a substantial hit, as net income plummeted by over 65% to $43.0 million. This resulted in an earnings per share (EPS) of $1.25, which fell short of analyst forecasts. The news of the CEO's departure added to investor concerns, creating uncertainty about the company's future leadership.

Atkore is down 28.8% since the beginning of the year, and at $57.95 per share, it is trading 39% below its 52-week high of $94.95 from November 2024. Investors who bought $1,000 worth of Atkore’s shares 5 years ago would now be looking at an investment worth $1,704.

What Happened?

A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks. 

The main story? Investors are cashing in on a good run and feeling a bit cautious. After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains.This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced. 

There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.

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:

• Renewable Energy company Plug Power fell 10.2%. Is now the time to buy Plug Power? Access our full analysis report here, it’s free for active Edge members.
• Maintenance and Repair Distributors company DXP fell 12.7%. Is now the time to buy DXP? Access our full analysis report here, it’s free for active Edge members.
• Construction and Maintenance Services company Primoris fell 5.6%. Is now the time to buy Primoris? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company Shoals fell 8.7%. Is now the time to buy Shoals? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components company nLIGHT fell 7.4%. Is now the time to buy nLIGHT? Access our full analysis report here, it’s free for active Edge members.

Zooming In On DXP (DXPE)

DXP’s shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for DXP and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 17.8% on the news that the company reported third-quarter results that showed a significant miss on profit expectations. While the industrial distributor's sales grew 8.6% year-over-year to $513.7 million, beating analyst estimates, its adjusted earnings did not meet forecasts. The company posted an adjusted profit of $1.34 per share, which was 14.4% below the consensus estimate of $1.57 per share. The market reacted negatively to the earnings shortfall, overlooking the better-than-expected revenue. This suggested that investors were more focused on profitability, and the failure to meet profit expectations led to a sharp sell-off in the shares.

DXP is up 3% since the beginning of the year, but at $86.91 per share, it is still trading 31.9% below its 52-week high of $127.63 from October 2025. Investors who bought $1,000 worth of DXP’s shares 5 years ago would now be looking at an investment worth $4,099.

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