What Happened?

A number of stocks fell in the afternoon session after markets continued to decline, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines. Investors have grown wary that the sharp rally in the tech sector since April may have advanced too far. The market-wide caution is largely driven by the upcoming Jackson Hole symposium, a meeting of central bankers, where traders are anxiously awaiting Fed Chair Powell's speech on Friday for guidance on the future path of interest rates.

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:

• Thrifts & Mortgage Finance company Rocket Companies (NYSE: RKT) fell 3.2%. Is now the time to buy Rocket Companies? Access our full analysis report here, it’s free.
• Thrifts & Mortgage Finance company Mr. Cooper Group (NASDAQ: COOP) fell 3.4%. Is now the time to buy Mr. Cooper Group? Access our full analysis report here, it’s free.
• Apparel and Accessories company Stitch Fix (NASDAQ: SFIX) fell 3.4%. Is now the time to buy Stitch Fix? Access our full analysis report here, it’s free.
• Modern Fast Food company Wingstop (NASDAQ: WING) fell 4.1%. Is now the time to buy Wingstop? Access our full analysis report here, it’s free.
• Apparel and Accessories company Under Armour (NYSE: UAA) fell 3.3%. Is now the time to buy Under Armour? Access our full analysis report here, it’s free.

Zooming In On Wingstop (WING)

Wingstop’s shares are quite volatile and have had 19 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 6 days ago when the stock gained 3.4% on the news that the company was upgraded to 'Strong Buy' by Raymond James. Raymond James raised its rating from "Outperform," citing the company's "Smart Kitchen" system as a potential "game changer," while maintaining its $420 price target.

Wingstop is up 8.4% since the beginning of the year, but at $316.68 per share, it is still trading 26% below its 52-week high of $427.92 from September 2024. Investors who bought $1,000 worth of Wingstop’s shares 5 years ago would now be looking at an investment worth $1,882.

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