What Happened?
A number of stocks fell in the afternoon session after geopolitical uncertainty and a sharp rise in oil prices weighed on broader market sentiment. The S&P 500 dropped by 1%, with the Dow and Nasdaq also seeing declines as conflict in Iran intensified. Tensions around the crucial Strait of Hormuz, a key channel for a fifth of the world's oil supply, pushed global energy prices higher. A barrel of Brent crude oil surged 4.9% to $101.98, a significant increase from its pre-war level of around $70. Rising energy costs can impact consumer spending by reducing disposable income, which often leads to concerns for companies in the retail, travel, and leisure industries.
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:
- Consumer Discretionary - Travel and Vacation Providers company Lindblad Expeditions (NASDAQ: LIND) fell 2.8%. Is now the time to buy Lindblad Expeditions? Access our full analysis report here, it’s free.
- Consumer Discretionary - Travel and Vacation Providers company Viking (NYSE: VIK) fell 3.8%. Is now the time to buy Viking? Access our full analysis report here, it’s free.
- Consumer Discretionary - Broadcasting company Paramount (NASDAQ: PSKY) fell 2.7%. Is now the time to buy Paramount? Access our full analysis report here, it’s free.
Zooming In On Viking (VIK)
Viking’s shares are quite volatile and have had 15 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 3 days ago when the stock gained 6.1% on the news that BofA Securities reiterated its Buy rating on the stock, a positive signal that was accompanied by a major company milestone. The bank kept its price target at $90.00. This positive view was shared by others, as Stifel also raised its price target to $90, and UBS maintained its Buy rating. Adding to the good news, Viking announced that its new hydrogen-powered cruise ship, the Viking Libra, was floated out. This event marked a major construction milestone, as it was the first time the ship touched water. Broader industry trends also provided a lift, as cruise company shares traded higher in response to a decline in oil costs.
Viking is flat since the beginning of the year, and at $71.62 per share, it is trading 10.2% below its 52-week high of $79.71 from February 2026. Investors who bought $1,000 worth of Viking’s shares at the IPO in April 2024 would now be looking at an investment worth $2,744.
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