What Happened?
A number of stocks jumped in the afternoon session after the Dow Jones Industrial Average retook the 50,000 level, driven by 'remarkably strong' corporate fundamentals and a breakthrough in U.S.-China relations.
President Trump and President Xi agreed in Beijing to ensure the Strait of Hormuz remains open, a critical win for global manufacturing supply chains choked by Middle East conflict. Also, April retail sales rose 0.5%, matching estimates and signaling that demand for industrial-produced goods remains stable.
Industrial companies build the machinery and infrastructure that power the global economy. While the 1.9% jump in import prices reported confirmed that manufacturing inputs were still more expensive, the reduction in geopolitical risk and the easing of the 10-year yield to 4.46% lowered the cost of the long-term debt used to finance these massive industrial projects.
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:
- Automobile Manufacturing company THOR Industries (NYSE: THO) jumped 3.1%. Is now the time to buy THOR Industries? Access our full analysis report here, it’s free.
- Aerospace company Astronics (NASDAQ: ATRO) jumped 1.9%. Is now the time to buy Astronics? Access our full analysis report here, it’s free.
- Home Builders company Installed Building Products (NYSE: IBP) jumped 3.6%. Is now the time to buy Installed Building Products? Access our full analysis report here, it’s free.
- Renewable Energy company Enphase (NASDAQ: ENPH) jumped 12.5%. Is now the time to buy Enphase? Access our full analysis report here, it’s free.
- Renewable Energy company SolarEdge (NASDAQ: SEDG) jumped 13.1%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.
Zooming In On SolarEdge (SEDG)
SolarEdge’s shares are extremely volatile and have had 89 moves greater than 5% over the last year. But moves this big are rare even for SolarEdge and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 5.7% on the news that investors reacted positively to the company's first-quarter 2026 earnings report, which highlighted strong growth in Europe despite a challenging industry environment.
The company reported a 46% year-over-year increase in non-GAAP revenue, largely driven by expanded demand in Europe and battery sales. This growth helped offset a sequential decline in U.S. revenues and concerns over an additional $14 million bad-debt charge related to a U.S. customer.
Despite some profitability pressures, with a gross profit margin of 18%, management maintained a positive outlook. The company generated positive free cash flow and anticipates this trend will continue for the full year, guiding for a near-breakeven operating profit in the second quarter.
SolarEdge is up 57.3% since the beginning of the year, and at $49.40 per share, it is trading close to its 52-week high of $51.87 from March 2026. Despite the year-to-date gain, investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at only $225.43.
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