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:
- Marine Transportation company Matson (NYSE: MATX) jumped 3%. Is now the time to buy Matson? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Limbach (NASDAQ: LMB) jumped 3.6%. Is now the time to buy Limbach? Access our full analysis report here, it’s free.
Zooming In On Limbach (LMB)
Limbach’s shares are extremely volatile and have had 38 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 18.5% on the news that the company reported mixed second-quarter financial results, where a miss on revenue overshadowed a strong earnings beat and an increased full-year outlook.
The building systems provider posted adjusted earnings of $0.93 per share, which sailed past Wall Street's estimate of $0.77. However, quarterly revenue of $142.2 million fell short of the $145.68 million that analysts anticipated. This revenue miss seemed to capture investor attention, despite sales growing 16.4% compared to the same period last year. The company also raised its forecast for full-year 2025 revenue. Ultimately, the market appeared to weigh the revenue shortfall more heavily than the strong profitability and improved guidance, which prompted the stock's decline.
Limbach is up 8.4% since the beginning of the year, but at $85.68 per share, it is still trading 42.7% below its 52-week high of $149.53 from July 2025. Investors who bought $1,000 worth of Limbach’s shares 5 years ago would now be looking at an investment worth $5,461.
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