What Happened?

A number of stocks fell in the afternoon session after the major indices continued to retreat amid profit-taking and renewed concerns about tariffs. 

Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.

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:

• Boat & Marine Retailer company OneWater (NASDAQ: ONEW) fell 3.8%. Is now the time to buy OneWater? Access our full analysis report here, it’s free.
• Household Products company Spectrum Brands (NYSE: SPB) fell 3.5%. Is now the time to buy Spectrum Brands? Access our full analysis report here, it’s free.
• Home Furnishings company Lovesac (NASDAQ: LOVE) fell 4.3%. Is now the time to buy Lovesac? Access our full analysis report here, it’s free.
• Leisure Products company Clarus (NASDAQ: CLAR) fell 3.7%. Is now the time to buy Clarus? Access our full analysis report here, it’s free.
• Industrial & Environmental Services company Vestis (NYSE: VSTS) fell 4.7%. Is now the time to buy Vestis? Access our full analysis report here, it’s free.

Zooming In On Vestis (VSTS)

Vestis’s shares are very volatile and have had 26 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 dropped 3.1% on the news that 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. 

Vestis is down 70.6% since the beginning of the year, and at $4.50 per share, it is trading 72.9% below its 52-week high of $16.62 from December 2024. Investors who bought $1,000 worth of Vestis’s shares at the IPO in September 2023 would now be looking at an investment worth $233.77.

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