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:
- Renewable Energy company TPI Composites (NASDAQ: TPIC) jumped 6.5%. Is now the time to buy TPI Composites? Access our full analysis report here, it’s free.
- Consumer Subscription company Chegg (NYSE: CHGG) jumped 10%. Is now the time to buy Chegg? Access our full analysis report here, it’s free.
- Leisure Facilities company Topgolf Callaway (NYSE: MODG) jumped 6.6%. Is now the time to buy Topgolf Callaway? Access our full analysis report here, it’s free.
- Renewable Energy company FuelCell Energy (NASDAQ: FCEL) jumped 10.7%. Is now the time to buy FuelCell Energy? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Semtech (NASDAQ: SMTC) jumped 5.1%. Is now the time to buy Semtech? Access our full analysis report here, it’s free.
Zooming In On FuelCell Energy (FCEL)
FuelCell Energy’s shares are extremely volatile and have had 89 moves greater than 5% over the last year. But moves this big are rare even for FuelCell Energy and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 17.8% on the news that the Biden administration announced new rules clarifying that some nuclear power plants can secure tax credits for producing clean hydrogen if the credits help keep reactors running.
This announcement means more funding opportunities for hydrogen producers despite some opposition from environmental groups regarding the use of nuclear to produce hydrogen. The update also provides more certainty for investors and related companies within the clean energy space.
FuelCell Energy is down 35% since the beginning of the year, and at $6.74 per share, it is trading 71.9% below its 52-week high of $24.02 from June 2024. Investors who bought $1,000 worth of FuelCell Energy’s shares 5 years ago would now be looking at an investment worth $86.76.
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