What Happened?
A number of stocks fell in the afternoon session after major indices pulled back from record highs reached the previous week. The S&P 500 and Nasdaq were under pressure as the dominant artificial intelligence trade cooled off.
Notable names like Nvidia were down as traders locked in profits following a banner year where the Nasdaq surged over 20%. With the S&P 500 recently hitting intraday highs near 6,945, this dip reflected a shift in internal momentum rather than a response to major economic news.
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:
- Engineered Components and Systems company NN (NASDAQ: NNBR) fell 6.9%. Is now the time to buy NN? Access our full analysis report here, it’s free for active Edge members.
- Aerospace company Redwire (NYSE: RDW) fell 3.2%. Is now the time to buy Redwire? Access our full analysis report here, it’s free for active Edge members.
- Renewable Energy company Array (NASDAQ: ARRY) fell 2.9%. Is now the time to buy Array? Access our full analysis report here, it’s free for active Edge members.
- Commercial Building Products company Apogee (NASDAQ: APOG) fell 3.6%. Is now the time to buy Apogee? Access our full analysis report here, it’s free for active Edge members.
- Automobile Manufacturing company Winnebago (NYSE: WGO) fell 2.7%. Is now the time to buy Winnebago? Access our full analysis report here, it’s free for active Edge members.
Zooming In On NN (NNBR)
NN’s shares are extremely volatile and have had 59 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 12 months ago when the stock gained 20.2% on the news that the company reported impressive preliminary guidance, with full-year 2024 new business wins expected to exceed the high end of its previous guidance.
Management added, "We will continue this pace of new business acquisition into 2025 and 2026 and have a $720 million pipeline to support it. 2025 is off to a great start with the simultaneous launch of fifty [50] new programs during the first quarter.".
NN is down 60.6% since the beginning of the year, and at $1.25 per share, it is trading 64.2% below its 52-week high of $3.48 from February 2025. Investors who bought $1,000 worth of NN’s shares 5 years ago would now be looking at an investment worth $198.88.
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