What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
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:
- Shelf-Stable Food company Hain Celestial (NASDAQ: HAIN) jumped 6.8%. Is now the time to buy Hain Celestial? Access our full analysis report here, it’s free.
- Apparel and Accessories company Guess (NYSE: GES) jumped 5.3%. Is now the time to buy Guess? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company IAC (NASDAQ: IAC) jumped 5.7%. Is now the time to buy IAC? Access our full analysis report here, it’s free.
- Sit-Down Dining company First Watch (NASDAQ: FWRG) jumped 5.3%. Is now the time to buy First Watch? Access our full analysis report here, it’s free.
- Apparel and Accessories company Levi's (NYSE: LEVI) jumped 5.1%. Is now the time to buy Levi's? Access our full analysis report here, it’s free.
Zooming In On Hain Celestial (HAIN)
Hain Celestial’s shares are extremely volatile and have had 50 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 10 days ago when the stock gained 6% after the major indices rebounded, as the Bureau of Labor Statistics report revealed a resilient labor market with non-farm payrolls rising by 139,000 in May 2025, significantly above the consensus forecast of 125,000.
Notably, a stable labor market often supports consumer spending, which is a key driver of economic growth, which means the report could help ease some of the recession fears that gripped markets. The data also supported the soft landing narrative, where the Fed can manage inflation toward its 2% target without significant damage to the economy.
Hain Celestial is down 71.3% since the beginning of the year, and at $1.72 per share, it is trading 81.1% below its 52-week high of $9.09 from October 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $55.73.
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