Nyse Order Imbalance 15162.0 Shares On Sell Side

What Happened?

A number of stocks fell in the afternoon session after new economic data intensified market agitation ahead of the Federal Reserve's policy decision later in the week. 

According to the Bureau of Economic Analysis, real consumer spending, which is adjusted for inflation, stalled in September, marking its weakest performance in four months. Compounding the issue, the University of Michigan's consumer sentiment index, while slightly improved, remained gloomy, with one economist noting that many households faced affordability issues forcing them to be more cautious. This pressure on consumers was reflected in the market, where the Consumer Discretionary sector was among the leading decliners. The broader economic picture showed other signs of caution, as new orders for U.S. factory goods also increased less than anticipated. These indicators collectively suggest a widening slowdown across both consumer and industrial sectors as the Federal Reserve prepared to announce its final policy actions for the year.

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:

• Wireless, Cable and Satellite company Cable One fell 4.4%. Is now the time to buy Cable One? Access our full analysis report here, it’s free for active Edge members.
• Leisure Products company Ruger fell 5%. Is now the time to buy Ruger? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Movado fell 4%. Is now the time to buy Movado? Access our full analysis report here, it’s free for active Edge members.
• Education Services company Strategic Education fell 4.2%. Is now the time to buy Strategic Education? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Ruger (RGR)

Ruger’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 17 days ago when the stock gained 2.6% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

Ruger is down 6.5% since the beginning of the year, and at $32.59 per share, it is trading 30.9% below its 52-week high of $47.13 from October 2025. Investors who bought $1,000 worth of Ruger’s shares 5 years ago would now be looking at an investment worth $531.13.

Movado’s third quarter results were met with a positive market reaction, as investors responded to margin improvements and steady top-line growth. Management credited the quarter’s performance to innovation across brands, with CEO Efraim Grinberg pointing to new product launches and expanded digital marketing as key demand drivers. The company also highlighted a shift in consumer trends benefiting both women’s and men’s collections, as well as direct-to-consumer channels. Grinberg noted, “Innovation in new shapes, and sizes and growing interest from women and younger consumers” supported category momentum.

Is now the time to buy MOV? Find out in our full research report (it’s free for active Edge members).

Movado (MOV) Q3 CY2025 Highlights:

• Revenue: $186.1 million vs analyst estimates of $185.9 million (3.1% year-on-year growth, in line)
• EPS (GAAP): $0.42 vs analyst expectations of $0.57 (26.8% miss)
• Adjusted EBITDA: $15.41 million (8.3% margin, 60.3% year-on-year growth)
• Operating Margin: 6.3%, up from 3.3% in the same quarter last year
• Market Capitalization: $471.5 million

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 Movado’s Q3 Earnings Call

• Hamed Khorsand (BWS Financial) asked if product success was more attributable to influencer campaigns or design appeal among Gen Z. CEO Efraim Grinberg explained it was a combination of social media coverage, digital campaigns, and innovative designs resonating with younger consumers globally.
• Hamed Khorsand (BWS Financial) inquired whether sold-out collections could impair sales. Grinberg clarified that while some limited editions are intentionally sold out, most styles will be replenished to maintain supply-demand balance, with restocking planned for coming quarters.
• Hamed Khorsand (BWS Financial) questioned if recent sales momentum would alter planned spending levels. Grinberg responded that the company would continue to invest in brand building but emphasized ongoing efforts to improve profitability and maintain disciplined expense management.

Catalysts in Upcoming Quarters

In the next several quarters, the StockStory team will be tracking (1) execution of tariff mitigation strategies and the impact of reduced Swiss import duties on margins, (2) continued momentum in direct-to-consumer and digital channels, and (3) progress in rebuilding the Middle East business. We will also monitor the effectiveness of new product launches in driving revenue growth and the company’s ability to balance marketing investments with margin discipline.

Movado currently trades at $21.26, up from $19.43 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

The Best Stocks for High-Quality Investors

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Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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Luxury watch company Movado met Wall Streets revenue expectations in Q3 CY2025, with sales up 1.9% year on year to $186.1 million. Its GAAP profit of $0.42 per share was 26.8% below analysts’ consensus estimates.

Is now the time to buy MOV? Find out in our full research report (it’s free for active Edge members).

Movado (MOV) Q3 CY2025 Highlights:

• Revenue: $186.1 million vs analyst estimates of $185.9 million (1.9% year-on-year growth, in line)
• EPS (GAAP): $0.42 vs analyst expectations of $0.57 (26.8% miss)
• Adjusted EBITDA: $14.11 million (7.6% margin, 10% year-on-year growth)
• Operating Margin: 6.3%, up from 5.1% in the same quarter last year
• Market Capitalization: $456.7 million

StockStory’s Take

Movado’s third quarter results were met with a positive market reaction, as investors responded to margin improvements and steady top-line growth. Management credited the quarter’s performance to innovation across brands, with CEO Efraim Grinberg pointing to new product launches and expanded digital marketing as key demand drivers. The company also highlighted a shift in consumer trends benefiting both women’s and men’s collections, as well as direct-to-consumer channels. Grinberg noted, “Innovation in new shapes, and sizes and growing interest from women and younger consumers” supported category momentum.

Looking ahead, Movado’s strategy centers on leveraging recent momentum across its brand portfolio while navigating ongoing global uncertainty and changes in trade policy. Management plans to balance investment in brand building with an emphasis on profitability, aided by expected tariff reductions on Swiss imports. Grinberg stated the new framework agreement with Switzerland will “allow us to plan effectively for next year and reduce the level of price based mitigation,” positioning the company for less pricing pressure and additional flexibility as it enters the holiday season and beyond.

Key Insights from Management’s Remarks

Movado’s management attributed the quarter’s results to new product innovation, evolving consumer preferences, and improved margin management amid tariff and regional headwinds.

• Brand innovation and launches: Movado introduced several new collections, such as the BANGL and Automatic Museum Imperial, with strong responses from both women and younger consumers, fueling growth in core and emerging segments.
• Digital and direct-to-consumer gains: The company’s direct-to-consumer business experienced double-digit growth, driven by enhanced digital marketing, refreshed in-store displays, and ambassador-led campaigns. Movado.com and company stores saw notable contribution margin improvements as a result.
• Tariff headwinds and easing: Management highlighted the impact of U.S. tariffs on Swiss-made watches but welcomed a recent trade agreement that will significantly reduce these tariffs, which had previously required the company to rely more heavily on pricing strategies to protect margins.
• Regional performance divergence: U.S. sales rebounded, particularly in fashion brands and company-owned stores, while Europe and Latin America remained strong performers. The Middle East continued to lag due to ongoing strategic restructuring, though management expects this region to return to growth next year.
• Licensed brand momentum: Licensed brands including Coach, Hugo Boss, Tommy Hilfiger, and Lacoste delivered growth, with tailored product offerings and marketing campaigns targeting Gen Z and men’s fashion jewelry contributing to segment outperformance.

Drivers of Future Performance

Movado’s outlook is shaped by expected tariff relief, ongoing product innovation, and a balanced approach between growth investment and margin discipline.

• Tariff relief and pricing flexibility: The new trade agreement lowering tariffs on Swiss watches should reduce cost pressures and enable more competitive pricing, supporting profitability and demand, especially in the U.S. market.
• Strategic brand investments: Management plans to continue investing in marketing, product innovation, and digital engagement, but will do so with a sharper focus on profit improvement. This disciplined spending is intended to sustain growth without eroding margins.
• Regional and consumer trends: The company expects U.S. and international growth to be driven by refreshed product lines and successful outreach to younger and female consumers, while monitoring the pace of recovery in the Middle East and potential shifts in global luxury spending patterns.

Catalysts in Upcoming Quarters

In the next several quarters, the StockStory team will be tracking (1) execution of tariff mitigation strategies and the impact of reduced Swiss import duties on margins, (2) continued momentum in direct-to-consumer and digital channels, and (3) progress in rebuilding the Middle East business. We will also monitor the effectiveness of new product launches in driving revenue growth and the company’s ability to balance marketing investments with margin discipline.

Movado currently trades at $20.63, up from $19.43 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

Stocks That Trumped Tariffs

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The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return).