What Happened?

A number of stocks jumped in the afternoon session after major financial and service firms like BlackRock and Citigroup reported impressive earnings. 

Investor confidence was further bolstered by the S&P 500’s steady climb toward a new all-time high, supported by the prospect of a diplomatic resolution to the conflict in Iran. These companies benefit from increased corporate spending and stabilizing macroeconomic conditions. As businesses shift their focus from crisis management to long-term growth, demand for professional services, digital transformation consulting, and automated financial platforms scales, allowing these providers to capitalize on higher deal volumes and expanded service contracts.

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:

• Terrestrial Telecommunication Services company Cogent (NASDAQ: CCOI) jumped 3.9%. Is now the time to buy Cogent? Access our full analysis report here, it’s free.
• Business Process Outsourcing & Consulting company Concentrix (NASDAQ: CNXC) jumped 3.6%. Is now the time to buy Concentrix? Access our full analysis report here, it’s free.

Zooming In On Cogent (CCOI)

Cogent’s shares are extremely volatile and have had 39 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 19 days ago when the stock dropped 2.6% on the news that U.S. equities traded lower as escalating geopolitical tensions between the U.S. and Iran pushed oil prices above $100 a barrel, rattling investor confidence. 

Major indices saw significant declines, with the Dow Jones tumbling. The uncertainty surrounding the conflict drove Brent crude oil higher, effectively acting as a tax on the global economy by increasing costs for businesses and consumers. 

This sentiment was reflected in the University of Michigan's consumer survey, which fell to a three-month low as households braced for higher inflation, with year-ahead expectations jumping to 3.8%. Richmond Fed President Tom Barkin commented on the situation, noting that the 'fog of war' has deepened economic uncertainty and that historically, such oil price shocks are highly coincident with recessions.

Cogent is up 13.9% since the beginning of the year, but at $23.49 per share, it is still trading 58.4% below its 52-week high of $56.46 from May 2025. Despite the year-to-date gain, investors who bought $1,000 worth of Cogent’s shares 5 years ago would now be looking at only $340.53.

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