What Happened?
A number of stocks jumped in the afternoon session after the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices.
This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
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:
- Electronic Components company Vicor (NASDAQ:VICR) jumped 7.8%. Is now the time to buy Vicor? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Primoris (NYSE:PRIM) jumped 8.2%. Is now the time to buy Primoris? Access our full analysis report here, it’s free.
- Gas and Liquid Handling company Flowserve (NYSE:FLS) jumped 8%. Is now the time to buy Flowserve? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company WillScot Mobile Mini (NASDAQ:WSC) jumped 6.8%. Is now the time to buy WillScot Mobile Mini? Access our full analysis report here, it’s free.
- Specialty Equipment Distributors company United Rentals (NYSE:URI) jumped 6.3%. Is now the time to buy United Rentals? Access our full analysis report here, it’s free.
Zooming In On Primoris (PRIM)
Primoris’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 biggest move we wrote about over the last year was 12 months ago when the stock gained 10.5% on the news that the company reported impressive fourth-quarter results that exceeded analysts' backlog, revenue, EPS, and EBITDA estimates.
Revenue grew by 14.9% y/y, driven primarily by strong performance in the Energy and Utilities segments. Operating income saw a modest increase, as gross margins in the utilities segment improved significantly. Looking ahead, full-year EPS and EBITDA guidance exceeded Wall Street estimates, as the company ended the year with a record backlog of $11.9 billion, an 8.9% increase from the prior year. Overall, it was a strong quarter.
Primoris is up 23.4% since the beginning of the year, and at $161.21 per share, has set a new 52-week high. Investors who bought $1,000 worth of Primoris’s shares 5 years ago would now be looking at an investment worth $4,977.
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