What Happened?

A number of stocks jumped in the afternoon session after a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. 

The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.

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:

• Electrical Systems company Atkore (NYSE: ATKR) jumped 3.5%. Is now the time to buy Atkore? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components company Allient (NASDAQ: ALNT) jumped 3.4%. Is now the time to buy Allient? Access our full analysis report here, it’s free for active Edge members.
• Aerospace company Ducommun (NYSE: DCO) jumped 2.8%. Is now the time to buy Ducommun? Access our full analysis report here, it’s free for active Edge members.
• Marine Transportation company Genco (NYSE: GNK) jumped 3.5%. Is now the time to buy Genco? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Atkore (ATKR)

Atkore’s shares are somewhat volatile and have had 13 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 12 days ago when the stock gained 2.6% on the news that it extended gains from the previous day as it was reported that activist investor Irenic Capital Management has acquired a stake and is urging the company to pursue a sale. The positive momentum follows Tuesday's news, where the stock also rose after reports revealed Irenic Capital had built a 2.5% stake in the electrical manufacturing company. According to sources familiar with the matter, Irenic has privately engaged with Atkore's board, advocating that a sale to a private equity firm would be the best outcome for shareholders. This development comes as Atkore is already exploring its strategic options. The company had previously disclosed it is "evaluating a broad range of alternatives" and has reportedly enlisted Citigroup to assist with its strategic review process.

Atkore is down 21.8% since the beginning of the year, and at $63.69 per share, it is trading 39% below its 52-week high of $104.45 from November 2024. Investors who bought $1,000 worth of Atkore’s shares 5 years ago would now be looking at an investment worth $2,685.

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