Stratasys, Proto Labs, Methode Electronics, United Rentals, and Powell Stocks Trade Down, What You Need To Know

What Happened?

A number of stocks jumped in the afternoon session after 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.

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 jumped 3.5%. Is now the time to buy Herc? Access our full analysis report here, it’s free.
• Automobile Manufacturing company Lucid jumped 2.6%. Is now the time to buy Lucid? Access our full analysis report here, it’s free.
• Energy Products and Services company Ameresco jumped 3.2%. Is now the time to buy Ameresco? Access our full analysis report here, it’s free.
• Custom Parts Manufacturing company Stratasys jumped 3.3%. Is now the time to buy Stratasys? Access our full analysis report here, it’s free.
• Waste Management company Perma-Fix jumped 3.2%. Is now the time to buy Perma-Fix? 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 biggest move we wrote about over the last year was 6 months ago when the stock dropped 17.9% on the news that the company issued a disappointing full-year forecast that overshadowed its second-quarter financial results. 

While the equipment rental company's revenue grew 18.2% year-over-year to $1.00 billion, it reported a net loss of $35 million. This loss stemmed primarily from $73 million in costs related to its acquisition of H&E Equipment Services and a $49 million asset impairment. The market reacted negatively to the company's updated guidance for the full year, with its revenue projection falling 15% below analyst expectations. The acquisition also increased Herc's debt load and pushed its net leverage ratio to 3.8x, amplifying concerns about the company's financial stability amid the costly integration process.

Herc is up 11.8% since the beginning of the year, but at $170.29 per share, it is still trading 19.3% 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 $2,362.

What Happened?

Shares of electrical energy control systems manufacturer Powell (NYSE:POWL) jumped 3% in the afternoon session after Roth Capital raised its price target on the company's shares to $450 from $350, while maintaining a 'Buy' rating. 

This action suggested the firm saw more potential for the stock's price to rise in the future. According to analyst Chip Moore, the decision to lift the price target reflected a positive outlook. Price target increases from financial analysts can often boost investor confidence, as they represent an optimistic re-evaluation of a company's prospects and potential valuation.

After the initial pop the shares cooled down to $425.95, up 1.4% from previous close.

What Is The Market Telling Us

Powell’s shares are extremely volatile and have had 37 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 biggest move we wrote about over the last year was 2 months ago when the stock dropped 11% on the news that the stock's negative momentum continued as the company reported third-quarter 2025 revenue and earnings that surpassed analyst expectations, but its results also included signs of slowing growth. 

While revenue grew 8.3% year-on-year to $298 million and GAAP earnings per share of $4.22 beat Wall Street's estimates, investors seemed to focus on potential headwinds. The company's backlog of future work, a key indicator of demand, grew by 7.7% year-on-year to $1.4 billion. This rate was slower than its revenue growth, which can suggest that new orders are not keeping pace with current sales. Furthermore, analysts' forward-looking estimates project that revenue growth will decelerate to 6.1% over the next 12 months and that full-year earnings per share will remain flat, pointing to a less robust outlook.

Powell is up 20.8% since the beginning of the year, and at $425.95 per share, has set a new 52-week high. Investors who bought $1,000 worth of Powell’s shares 5 years ago would now be looking at an investment worth $13,727.