What Happened?
A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East sent crude oil prices soaring, stoking fears of resurgent inflation.
The price for Brent crude, the international benchmark, leaped over 6% to $82.57 a barrel amid an escalating war with Iran, which has threatened to block the Strait of Hormuz. This critical waterway handles about 20% of global oil flow. A sustained increase in energy prices could translate to higher inflation, potentially impacting consumer spending and corporate earnings. This scenario also complicates the Federal Reserve's path forward, as persistent inflation could delay anticipated interest rate cuts that investors have been counting on to support the economy.
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:
- Engineered Components and Systems company Worthington (NYSE: WOR) fell 4.3%. Is now the time to buy Worthington? Access our full analysis report here, it’s free.
- Waste Management company Perma-Fix (NASDAQ: PESI) fell 3.9%. Is now the time to buy Perma-Fix? Access our full analysis report here, it’s free.
- Commercial Building Products company Johnson Controls (NYSE: JCI) fell 4.1%. Is now the time to buy Johnson Controls? Access our full analysis report here, it’s free.
- Industrial Packaging company Graphic Packaging Holding (NYSE: GPK) fell 4.4%. Is now the time to buy Graphic Packaging Holding? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Goodyear (NASDAQ: GT) fell 3.9%. Is now the time to buy Goodyear? Access our full analysis report here, it’s free.
Zooming In On Graphic Packaging Holding (GPK)
Graphic Packaging Holding’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be 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 dropped 15.8% on the news that the company reported weak first-quarter 2025 results, which included a significant miss in full-year revenue guidance and full-year EBITDA guidance falling short of Wall Street's estimates. Sales for the quarter fell 6% year over year, weighed down by the divestiture of the Augusta facility, lower open market sales, and modest price pressure, though international volume showed some growth. Overall, this quarter could have been better.
Graphic Packaging Holding is down 25.7% since the beginning of the year, and at $11.26 per share, it is trading 59.4% below its 52-week high of $27.73 from March 2025. Investors who bought $1,000 worth of Graphic Packaging Holding’s shares 5 years ago would now be looking at an investment worth $680.88.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
