What Happened?
A number of stocks jumped in the pre-market session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Data Analytics company Health Catalyst (NASDAQ: HCAT) jumped 8.5%. Is now the time to buy Health Catalyst? Access our full analysis report here, it’s free.
- Footwear company Steven Madden (NASDAQ: SHOO) jumped 5.1%. Is now the time to buy Steven Madden? Access our full analysis report here, it’s free.
- Aerospace company Astronics (NASDAQ: ATRO) jumped 5.3%. Is now the time to buy Astronics? Access our full analysis report here, it’s free.
- Online Retail company Wayfair (NYSE: W) jumped 8.4%. Is now the time to buy Wayfair? Access our full analysis report here, it’s free.
- Financial Technology company Robinhood (NASDAQ: HOOD) jumped 5.2%. Is now the time to buy Robinhood? Access our full analysis report here, it’s free.
Zooming In On Health Catalyst (HCAT)
Health Catalyst’s shares are extremely volatile and have had 45 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 10 months ago when the stock gained 40.1% on the news that the company reported strong second-quarter 2024 results that narrowly topped analysts' revenue expectations, while EPS beat by a more convincing margin. Adjusted EBITDA and free cash flow also beat Wall Street's estimates during the quarter.
On the other hand, its revenue guidance for the next quarter missed analysts' expectations, and its gross margin shrank. Overall, this was a mixed, yet decent quarter for the company.
Health Catalyst is down 48.7% since the beginning of the year, and at $3.76 per share, it is trading 58.3% below its 52-week high of $9.02 from December 2024. Investors who bought $1,000 worth of Health Catalyst’s shares 5 years ago would now be looking at an investment worth $136.73.
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