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:
- HVAC and Water Systems company Advanced Drainage (NYSE:WMS) jumped 3.3%. Is now the time to buy Advanced Drainage? Access our full analysis report here, it’s free.
- Construction Machinery company Terex (NYSE:TEX) jumped 3.2%. Is now the time to buy Terex? Access our full analysis report here, it’s free.
- Building Materials company Valmont (NYSE:VMI) jumped 3.2%. Is now the time to buy Valmont? Access our full analysis report here, it’s free.
- Aerospace company Woodward (NASDAQ:WWD) jumped 3.1%. Is now the time to buy Woodward? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Orion (NYSE:ORN) jumped 3.4%. Is now the time to buy Orion? Access our full analysis report here, it’s free.
Zooming In On Orion (ORN)
Orion’s shares are extremely volatile and have had 38 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 15 days ago when the stock gained 15.9% on the news that JPMorgan initiated coverage on the company with an "Overweight" rating and a $16.00 price target. The investment bank's positive view came after a site visit to Orion's Tampa office and Clearwater Marina project. According to the bank's analysis, Orion was seen as a key beneficiary of U.S. infrastructure and data center construction cycles. JPMorgan's report highlighted the company's focus on marine construction, dredging, and large-scale concrete services. The $16 price target represented a potential upside of approximately 45% from the stock's price at the time of the report, signaling strong confidence in the company's prospects.
Orion is up 41.5% since the beginning of the year, and at $14.14 per share, has set a new 52-week high. Investors who bought $1,000 worth of Orion’s shares 5 years ago would now be looking at an investment worth $2,396.
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