What Happened:
Shares of electrical safety company Atkore (NYSE:ATKR) fell 14.6% in the pre-market session after the company reported earnings results. Its EBITDA forecast for the full year missed, and its EPS fell short of Wall Street's estimates. The company cited some of the reasons for the weakness adding "The third quarter proved to be more challenging than we initially anticipated due to a limited increase in demand from the summer construction season and an overall soft pricing environment across most of our Electrical business." Overall, this quarter could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Atkore? Access our full analysis report here, it's free.
What is the market telling us:
Atkore's shares are quite volatile and over the last year have had 11 moves greater than 5%. But moves this big are very rare even for Atkore and that is indicating to us that this news had a significant impact on the market's perception of the business.
Atkore is down 37.5% since the beginning of the year, and at $101.92 per share it is trading 47.3% below its 52-week high of $193.58 from March 2024. Investors who bought $1,000 worth of Atkore's shares 5 years ago would now be looking at an investment worth $3,893.
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