What Happened?
A number of stocks fell in the afternoon session after signals of de-escalation in the U.S.-Iran conflict caused oil prices to fall, removing a key support for the energy sector.
The drop in crude prices came after President Trump suggested the U.S. could wind down its military campaign against Iran within weeks, and Iran's president stated a readiness to end the war. This news unwound the "war premium" that had boosted oil stocks during the conflict. As a result, West Texas Intermediate (WTI) crude oil fell about 2% to trade below $101 a barrel. The decline was also fueled by traders taking profits after a strong run in energy stocks.
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:
- U.S. Shale E&P company Matador Resources (NYSE: MTDR) fell 3.4%. Is now the time to buy Matador Resources? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company SM Energy (NYSE: SM) fell 5.6%. Is now the time to buy SM Energy? Access our full analysis report here, it’s free.
- U.S. Shale E&P company Northern Oil and Gas (NYSE: NOG) fell 4.1%. Is now the time to buy Northern Oil and Gas? Access our full analysis report here, it’s free.
- Oilfield Services company ProFrac (NASDAQ: ACDC) fell 6.6%. Is now the time to buy ProFrac? Access our full analysis report here, it’s free.
- Diversified Upstream E&P company Coterra Energy (NYSE: CTRA) fell 3.7%. Is now the time to buy Coterra Energy? Access our full analysis report here, it’s free.
Zooming In On ProFrac (ACDC)
ProFrac’s shares are extremely volatile and have had 72 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.
ProFrac is up 42% since the beginning of the year, but at $5.74 per share, it is still trading 45.5% below its 52-week high of $10.53 from June 2025. Investors who bought $1,000 worth of ProFrac’s shares at the IPO in May 2022 would now be looking at an investment worth $316.84.
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