What Happened?
A number of stocks fell in the afternoon session after the U.S. threatened to impose "massive increases" to tariffs on China in response to new export controls from Beijing.
The potential countermeasures follow China's decision to place new restrictions on the export of strategic minerals and related products, including rare earths, which are critical for the defense, semiconductor, and manufacturing industries. This escalation in the economic competition between the two largest global economies is fueling investor anxiety. The new tariff threats raise concerns about disruptions to global supply chains, increased material costs for manufacturers, and a potential drag on an already sluggish economy. Industrial companies are particularly sensitive to these developments as they are often cyclical and heavily reliant on international trade.
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:
- Industrial Packaging company Graphic Packaging Holding (NYSE:GPK) fell 2.8%. Is now the time to buy Graphic Packaging Holding? Access our full analysis report here, it’s free for active Edge members.
- Renewable Energy company SolarEdge (NASDAQ:SEDG) fell 8.2%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free for active Edge members.
- Ground Transportation company Saia (NASDAQ:SAIA) fell 6.4%. Is now the time to buy Saia? Access our full analysis report here, it’s free for active Edge members.
- Construction and Maintenance Services company WillScot Mobile Mini (NASDAQ:WSC) fell 2.9%. Is now the time to buy WillScot Mobile Mini? Access our full analysis report here, it’s free for active Edge members.
- Home Construction Materials company Quanex (NYSE:NX) fell 3.8%. Is now the time to buy Quanex? Access our full analysis report here, it’s free for active Edge members.
Zooming In On SolarEdge (SEDG)
SolarEdge’s shares are extremely volatile and have had 93 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 1 day ago when the stock gained 8.5% on the news that Barclays raised its price target on the stock to $36 from a previous $29. The significant 24% increase in the price target was announced by analyst Christine Cho. However, Barclays maintained its 'Equal-Weight' rating on SolarEdge. This action suggested a more favorable view of the company's potential stock price, even while the firm's overall stance on the stock remained neutral. The stock's rise also occurred amid a generally positive feeling in the green energy sector, which was seen as having strong momentum.
SolarEdge is up 137% since the beginning of the year, but at $35.05 per share, it is still trading 11.2% below its 52-week high of $39.45 from September 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $117.64.
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