What Happened?
A number of stocks fell in the afternoon session after markets reacted to President Trump's threat to "completely obliterate" Iran's energy infrastructure and the critical Kharg Island hub.
The ultimatum raised the specter of a total energy supply shock. Notably, Kharg Island handles 90% of Iran's crude exports. The escalating rhetoric, including potential ground force deployment to seize fuel hubs, drove a flight to safety.
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:
- Electrical Systems company Powell (NASDAQ: POWL) fell 7.7%. Is now the time to buy Powell? Access our full analysis report here, it’s free.
- Electrical Systems company Vertiv (NYSE: VRT) fell 7.6%. Is now the time to buy Vertiv? Access our full analysis report here, it’s free.
- HVAC and Water Systems company AAON (NASDAQ: AAON) fell 5.5%. Is now the time to buy AAON? Access our full analysis report here, it’s free.
- Renewable Energy company Nextpower (NASDAQ: NXT) fell 6.2%. Is now the time to buy Nextpower? Access our full analysis report here, it’s free.
- Electronic Components company Allient (NASDAQ: ALNT) fell 5%. Is now the time to buy Allient? Access our full analysis report here, it’s free.
Zooming In On Powell (POWL)
Powell’s shares are extremely volatile and have had 32 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 7 days ago when the stock gained 5.5% on the news that the Trump administration postponed military action against Iran's following 'very good and productive' talks.
The Dow Jones Industrial Average responded with a significant jump as the news sent a wave of optimism through trading floors. This type of broad market rally is often led by cyclical sectors, such as industrials, which are sensitive to global economic stability. Companies like construction equipment firm Caterpillar and manufacturing conglomerate 3M, which have large international operations, were among the top performers.
A decrease in geopolitical risk can lead to lower oil prices and a more stable outlook for global trade and large-scale projects, directly benefiting these firms.
Powell is up 42.6% since the beginning of the year, but at $502.74 per share, it is still trading 15.2% below its 52-week high of $592.90 from February 2026. Investors who bought $1,000 worth of Powell’s shares 5 years ago would now be looking at an investment worth $15,211.
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