What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Processors and Graphics Chips company Penguin Solutions (NASDAQ: PENG) jumped 5.1%. Is now the time to buy Penguin Solutions? Access our full analysis report here, it’s free.
- Video Gaming company Skillz (NYSE: SKLZ) jumped 5.1%. Is now the time to buy Skillz? Access our full analysis report here, it’s free.
- Apparel Retailer company Zumiez (NASDAQ: ZUMZ) jumped 5.8%. Is now the time to buy Zumiez? Access our full analysis report here, it’s free.
- Boat & Marine Retailer company OneWater (NASDAQ: ONEW) jumped 7.2%. Is now the time to buy OneWater? Access our full analysis report here, it’s free.
- Shelf-Stable Food company Utz (NYSE: UTZ) jumped 5%. Is now the time to buy Utz? Access our full analysis report here, it’s free.
Zooming In On OneWater (ONEW)
OneWater’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 biggest move we wrote about over the last year was 10 months ago when the stock dropped 20.8% on the news that the company reported weak second-quarter 2024 results. Its revenue and EPS missed analysts' expectations, and its full-year earnings forecast fell short of Wall Street's estimates. Notably, revenue declined by 8.7%, mostly due to weaknesses in the New boat segment (sales down 10.4%). Overall, this quarter could have been better.
OneWater is down 13.7% since the beginning of the year, and at $14.82 per share, it is trading 52.5% below its 52-week high of $31.18 from June 2024. Investors who bought $1,000 worth of OneWater’s shares 5 years ago would now be looking at an investment worth $950.00.
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