Nyse Order Imbalance 144839.0 Shares On Sell Side

What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

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:

• Specialty Equipment Distributors company Herc fell 4.7%. Is now the time to buy Herc? Access our full analysis report here, it’s free.
• Professional Tools and Equipment company Middleby fell 2.7%. Is now the time to buy Middleby? Access our full analysis report here, it’s free.
• Building Materials company Resideo fell 2.8%. Is now the time to buy Resideo? Access our full analysis report here, it’s free.
• Home Construction Materials company Fortune Brands fell 3.6%. Is now the time to buy Fortune Brands? Access our full analysis report here, it’s free.
• Maintenance and Repair Distributors company MSC Industrial fell 2.6%. Is now the time to buy MSC Industrial? Access our full analysis report here, it’s free.

Zooming In On Herc (HRI)

Herc’s shares are extremely volatile and have had 40 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 1 day ago when the stock gained 3.5% on the news that the US president announced a framework for a future deal with Greenland.

Wall Street saw a broad-based rally, with the S&P 500 gaining 1.2% as investor concerns over global trade tensions eased. The positive sentiment followed an announcement that reversed course on plans to impose tariffs linked to Greenland, which had caused steep market losses earlier in the week. This recovery reflected renewed optimism in the market, as the threat of a widening trade conflict appeared to subside, encouraging investors to move back into equities.

Herc is up 4.7% since the beginning of the year, but at $159.53 per share, it is still trading 24.4% below its 52-week high of $211.06 from January 2025. Investors who bought $1,000 worth of Herc’s shares 5 years ago would now be looking at an investment worth $2,286.

MSC Industrial’s fourth quarter results met Wall Street’s revenue expectations and delivered adjusted profits ahead of consensus, but the market reacted negatively, with shares declining after the release. Management attributed performance to continued momentum among core customers, effective sales execution, and price actions that offset volume softness, notably in public sector accounts. CEO Martina McIsaac acknowledged that public sector sales were impacted by the federal government shutdown, while national accounts returned to growth. She noted, “Core customers grew approximately 6% in Q1, buoyed by our initiatives around e-commerce marketing and seller optimization.”

MSC Industrial (MSM) Q4 CY2025 Highlights:

• Revenue: $965.7 million vs analyst estimates of $962.5 million (4% year-on-year growth, in line)
• Adjusted EPS: $0.99 vs analyst estimates of $0.95 (4.8% beat)
• Adjusted EBITDA: $106.3 million vs analyst estimates of $102.5 million (11% margin, 3.7% beat)
• Operating Margin: 7.9%, in line with the same quarter last year
• Organic Revenue rose 3.9% year on year vs analyst estimates of 3.8% growth (12.2 basis point beat)
• Market Capitalization: $4.70 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From MSC Industrial’s Q4 Earnings Call

• Ryan Merkel (William Blair) asked about the sustainability of price increases amid ongoing supplier inflation. CEO Martina McIsaac emphasized the need for further price actions, especially in metalworking, due to rising tungsten costs.
• Ken Newman (KeyBanc) questioned the achievability of 20% incremental margins and mid-single-digit growth. Management cited ongoing productivity initiatives and confidence in core customer momentum but acknowledged visibility remains limited.
• Tommy Moll (Stephens Inc.) sought clarity on recent cost measures and their link to service model changes. McIsaac explained that realignment of customer-facing teams produced headcount benefits and greater cost efficiency.
• Chris Dankert (Loop Capital) probed flat volume trends despite strong pricing. Management attributed cautious guidance to macro uncertainty and the impact of the supplier conference, but expressed confidence in core customer growth.
• David Manthey (Baird) asked why sequential growth and margins would not be higher given price-driven gains and cost cuts. Management noted that holiday timing, fixed costs, and event-related expenses would weigh on near-term results, but expected stronger leverage in the second half.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) whether MSC Industrial’s pricing actions in metalworking categories can be sustained without further volume decline, (2) the operational impact and sales momentum generated by the supplier growth forum, and (3) the pace of cost optimization and productivity gains across sales and service teams. Execution on these fronts, along with the company’s ability to navigate supplier-driven inflation, will be crucial for meeting margin and growth targets.

MSC Industrial currently trades at $84.18, in line with $84.94 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).