Press Release: Nn, Inc. Executive Management To Present At The Noble Capital Markets 21St Annual Emerging Growth Equity Conference

What Happened?

A number of stocks fell in the afternoon session after investors grew wary about the sustainability of the artificial intelligence-led boom, leading to a broad market decline. 

Nvidia slid 3% ahead of its earnings report, dragging down fellow "Magnificent Seven" peers despite a major partnership announcement with Anthropic, as investors increasingly question the durability of the AI rally.Market sentiment was further dampened by Bitcoin dropping below $90,000, signaling reduced risk appetite, and growing anxiety that the Federal Reserve may pause rate cuts in December, with the implied probability of a cut falling to roughly 50%. Adding to the weakness, Home Depot shares declined following an earnings miss and a cut to its full-year outlook. This combination of continued de-risking and valuation skepticism put the S&P 500 on pace for its fourth consecutive daily decline.

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:

• Engineered Components and Systems company Mayville Engineering fell 3%. Is now the time to buy Mayville Engineering? Access our full analysis report here, it’s free for active Edge members.
• Construction and Maintenance Services company WillScot Mobile Mini fell 5.8%. Is now the time to buy WillScot Mobile Mini? Access our full analysis report here, it’s free for active Edge members.
• Engineered Components and Systems company NN fell 3.5%. Is now the time to buy NN? Access our full analysis report here, it’s free for active Edge members.
• Specialty Equipment Distributors company Herc fell 3.2%. Is now the time to buy Herc? Access our full analysis report here, it’s free for active Edge members.
• Specialty Equipment Distributors company Custom Truck One Source fell 2.9%. Is now the time to buy Custom Truck One Source? Access our full analysis report here, it’s free for active Edge members.

Zooming In On WillScot Mobile Mini (WSC)

WillScot Mobile Mini’s shares are very volatile and have had 23 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 5 days ago when the stock dropped 5.2% on the news that 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.

WillScot Mobile Mini is down 54.2% since the beginning of the year, and at $15.27 per share, it is trading 61.1% below its 52-week high of $39.21 from December 2024. Investors who bought $1,000 worth of WillScot Mobile Mini’s shares 5 years ago would now be looking at an investment worth $695.99.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at engineered components and systems stocks, starting with RBC Bearings .

Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 12 engineered components and systems stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.5% since the latest earnings results.

RBC Bearings

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

RBC Bearings reported revenues of $455.3 million, up 14.4% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ Aerospace and Defense revenue estimates but a miss of analysts’ Diversified Industrials revenue estimates.

Dr. Michael J. Hartnett, Chairman and Chief Executive Officer, stated, “Our performance during the second quarter achieved a very high standard as demand from many of our core markets reached unprecedented levels. We were well prepared to support the generational expansion taking place in these aerospace and defense markets and are pleased to recognize the outstanding performance reached by our factories and offices. Clearly, we have entered a unique period in our business cycle and look forward to delivering a record year to our shareholders.”

Interestingly, the stock is up 6.3% since reporting and currently trades at $432.05.

Is now the time to buy RBC Bearings? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Timken

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken is a provider of industrial parts used across various sectors.

Timken reported revenues of $1.16 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $76.29.

Is now the time to buy Timken? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Park-Ohio

Based in Cleveland, Park-Ohio provides supply chain management services, capital equipment, and manufactured components.

Park-Ohio reported revenues of $398.6 million, down 4.5% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 3.3% since the results and currently trades at $20.39.

Read our full analysis of Park-Ohio’s results here.

Enpro

Holding a Guinness World Record for creating the world's largest gasket, Enpro designs, manufactures, and sells products used for machinery in various industries.

Enpro reported revenues of $286.6 million, up 9.9% year on year. This print topped analysts’ expectations by 3.6%. It was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

The stock is down 9.9% since reporting and currently trades at $210.70.

Read our full, actionable report on Enpro here, it’s free for active Edge members.

NN

Formerly known as Nuturn, NN provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

NN reported revenues of $103.9 million, down 8.5% year on year. This result lagged analysts' expectations by 7.1%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ revenue and EBITDA estimates.

NN pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 14% since reporting and currently trades at $1.63.

Read our full, actionable report on NN here, it’s free for active Edge members.