What Happened?

A number of stocks jumped in the afternoon session after the US president announced a framework for a future deal with Greenland. Wall Street saw a broad-based rally, with the S&P 500 gaining 1.2% as investor concerns over global trade tensions eased. The positive sentiment followed an announcement that reversed course on plans to impose tariffs linked to Greenland, which had caused steep market losses earlier in the week. This recovery reflected renewed optimism in the market, as the threat of a widening trade conflict appeared to subside, encouraging investors to move back into equities.

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:

• Defense Contractors company CACI (NYSE: CACI) jumped 4.4%. Is now the time to buy CACI? Access our full analysis report here, it’s free.
• Renewable Energy company SolarEdge (NASDAQ: SEDG) jumped 4.6%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.
• Specialty Equipment Distributors company Alta (NYSE: ALTG) jumped 4.7%. Is now the time to buy Alta? Access our full analysis report here, it’s free.
• Waste Management company Montrose (NYSE: MEG) jumped 4.5%. Is now the time to buy Montrose? Access our full analysis report here, it’s free.
• Electronic Components company Vicor (NASDAQ: VICR) jumped 4%. Is now the time to buy Vicor? Access our full analysis report here, it’s free.

Zooming In On Alta (ALTG)

Alta’s shares are extremely volatile and have had 54 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 3 months ago when the stock dropped 7.3% on the news that the company reported disappointing third-quarter 2025 financial results that missed Wall Street's expectations for both revenue and earnings. The equipment distribution company's sales fell 5.8% year-on-year to $422.6 million, falling short of analyst forecasts. On an adjusted basis, the loss per share was $0.35, which was considerably wider than the consensus estimate for a $0.17 loss. Furthermore, the company’s adjusted EBITDA for the quarter decreased to $41.7 million, and its full-year EBITDA guidance of $170 million at the midpoint came in below what analysts had anticipated. Adding to the negative sentiment, Alta's free cash flow was negative $13.2 million, a sharp reversal from a positive $23.9 million in the same quarter last year, prompting concerns about its cash generation.

Alta is up 29.7% since the beginning of the year, but at $6.50 per share, it is still trading 24.6% below its 52-week high of $8.62 from July 2025. Investors who bought $1,000 worth of Alta’s shares 5 years ago would now be looking at an investment worth $632.91.

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