What Happened?

A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, following stocks were impacted:

• Electronic Components & Manufacturing company Coherent (NYSE:COHR) jumped 6.6%. Is now the time to buy Coherent? Access our full analysis report here, it’s free.
• Energy Products and Services company Ameresco (NYSE:AMRC) jumped 12.6%. Is now the time to buy Ameresco? Access our full analysis report here, it’s free.
• Lending Software company Upstart (NASDAQ:UPST) jumped 7.4%. Is now the time to buy Upstart? Access our full analysis report here, it’s free.
• Consumer Electronics company Peloton (NASDAQ:PTON) jumped 8%. Is now the time to buy Peloton? Access our full analysis report here, it’s free.
• Analog Semiconductors company Impinj (NASDAQ:PI) jumped 7%. Is now the time to buy Impinj? Access our full analysis report here, it’s free.

Zooming In On Ameresco (AMRC)

Ameresco’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. But moves this big are rare even for Ameresco and indicate this news significantly impacted the market’s perception of the business.

Ameresco is down 61.8% since the beginning of the year, and at $9.60 per share, it is trading 75.3% below its 52-week high of $38.78 from September 2024. Investors who bought $1,000 worth of Ameresco’s shares 5 years ago would now be looking at an investment worth $559.80.

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