What Happened?
A number of stocks fell in the morning session after the latest industrial production report showed slower-than-expected growth for July. Data from the Federal Reserve indicated that U.S. industrial production rose by 0.2%, which was half of the 0.4% increase that analysts polled by The Wall Street Journal had anticipated. While this marked the second consecutive month of growth, it represented a slowdown from the previous month's revised figures. Manufacturing output also saw a modest 0.2% increase. This weaker-than-forecast data can raise concerns among investors about cooling economic activity and potentially softening demand for manufactured goods, which directly impacts the outlook for companies across the industrial sector.
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 Enpro (NYSE: NPO) fell 4.9%. Is now the time to buy Enpro? Access our full analysis report here, it’s free.
- Building Materials company Valmont (NYSE: VMI) fell 3%. Is now the time to buy Valmont? Access our full analysis report here, it’s free.
- Heavy Transportation Equipment company Cummins (NYSE: CMI) fell 3.4%. Is now the time to buy Cummins? Access our full analysis report here, it’s free.
- Engineered Components and Systems company Regal Rexnord (NYSE: RRX) fell 3.3%. Is now the time to buy Regal Rexnord? Access our full analysis report here, it’s free.
- Energy Products and Services company FTAI Infrastructure (NASDAQ: FIP) fell 3.4%. Is now the time to buy FTAI Infrastructure? Access our full analysis report here, it’s free.
Zooming In On Enpro (NPO)
Enpro’s shares are somewhat volatile and have had 11 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 4 months ago when the stock gained 7.7% on the news that crude futures tumbled more than 17% following Trump's declaration of a two-week suspension of attacks on Iran. The industrial sector, which is highly sensitive to energy costs and global trade fluidity, saw a significant lift. The prospect of a "workable basis" for negotiations reduced the fear of a prolonged industrial slowdown caused by energy shortages or disrupted supply chains. Industrial companies benefit from lower input costs for manufacturing and cheaper transportation for heavy equipment. The reopening of the Strait of Hormuz is particularly vital for the movement of raw materials and energy supplies that fuel industrial hubs.
Enpro is up 50.2% since the beginning of the year, but at $329.34 per share, it is still trading 12.6% below its 52-week high of $376.93 from June 2026. Investors who bought $1,000 worth of Enpro’s shares 5 years ago would now be looking at an investment worth $3,897.
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