What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. 

New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

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:

• Medical Devices & Supplies - Cardiology, Neurology, Vascular company Penumbra (NYSE: PEN) jumped 3.7%. Is now the time to buy Penumbra? Access our full analysis report here, it’s free for active Edge members.
• Branded Pharmaceuticals company Corcept (NASDAQ: CORT) jumped 3.8%. Is now the time to buy Corcept? Access our full analysis report here, it’s free for active Edge members.
• Specialty Pharmaceuticals company Elanco (NYSE: ELAN) jumped 3.6%. Is now the time to buy Elanco? Access our full analysis report here, it’s free for active Edge members.
• Patient Monitoring company ResMed (NYSE: RMD) jumped 3.6%. Is now the time to buy ResMed? Access our full analysis report here, it’s free for active Edge members.
• Surgical Equipment & Consumables - Specialty company LeMaitre (NASDAQ: LMAT) jumped 4.2%. Is now the time to buy LeMaitre? Access our full analysis report here, it’s free for active Edge members.

Zooming In On LeMaitre (LMAT)

LeMaitre’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 7 months ago when the stock dropped 12.2% on the news that the company reported weak first quarter 2025 results with a significant miss on full-year EPS guidance and underwhelming EPS guidance for next quarter. On the other hand, LeMaitre's full-year revenue guidance topped analysts' expectations and organic revenue outperform Wall Street's estimates. Still, this was a weaker quarter.

LeMaitre is down 3.6% since the beginning of the year, and at $88.20 per share, it is trading 18.3% below its 52-week high of $107.97 from November 2024. Investors who bought $1,000 worth of LeMaitre’s shares 5 years ago would now be looking at an investment worth $2,268.

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