Western Digital, AppLovin, Matson, AeroVironment, and OSI Systems Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after a new trade agreement between the United States and Japan spurred a broad market rally.
The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual 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:
Memory Semiconductors company Western Digital (NASDAQ:WDC) jumped 3.5%. Is now the time to buy Western Digital? Access our full analysis report here, it's free.
Advertising Software company AppLovin (NASDAQ:APP) jumped 3.2%. Is now the time to buy AppLovin? Access our full analysis report here, it's free.
Marine Transportation company Matson (NYSE:MATX) jumped 3.4%. Is now the time to buy Matson? Access our full analysis report here, it's free.
Defense Contractors company AeroVironment (NASDAQ:AVAV) jumped 3.3%. Is now the time to buy AeroVironment? Access our full analysis report here, it's free.
Specialized Technology company OSI Systems (NASDAQ:OSIS) jumped 3.3%. Is now the time to buy OSI Systems? Access our full analysis report here, it's free.
Zooming In On Western Digital (WDC)
Western Digital's shares are very volatile and have had 22 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 9 months ago when the stock gained 13.1% on the news that the company reported strong third-quarter earnings with significant gross margin improvement, which helped to beat on adjusted operating profit and adjusted EPS.
Notably, the cloud segment (54% of overall revenue) contributed the most to the top-line outperformance, accelerating 17% sequentially and 153% year on year. This was powered by what management considered "higher nearline shipments in HDD and enterprise SSD bit shipments to data center customers" and more than offsetting softness in the client and consumer segments. While guidance for next quarter's revenue and adjusted EPS slightly missed Wall Street's estimates, the market seemed to overlook this.
Western Digital is up 12% since the beginning of the year, and at $69.28 per share, it is trading close to its 52-week high of $73.43 from December 2024. Investors who bought $1,000 worth of Western Digital's shares 5 years ago would now be looking at an investment worth $1,501.
Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
21 minutes ago
- Bloomberg
US Futures Climb After Trump Agrees EU Tariff Deal: Markets Wrap
US equity futures climbed after the US and European Union struck a deal that will see the bloc face 15% tariffs on most exports, averting a potentially damaging trade war. S&P 500 contracts rose 0.4% after the index notched its fifth-straight all-time high on Friday. Asian equity futures were muted as investors braced for a busy week of data including a Federal Reserve meeting and the Aug. 1 deadline for American trade pacts. The euro was slightly higher against the dollar.
Yahoo
42 minutes ago
- Yahoo
Trump scores another big trade deal after securing promise of massive investment, but China will be less willing to cave, analyst says
President Donald Trump said the EU will invest $600 billion in the U.S., buy $750 billion of American energy products, and purchase 'vast amounts' of weapons as part of a trade deal that sets a 15% tariff. It comes a week after a similar agreement with Japan, which pledged to invest $550 billion in key U.S. industrial sectors. Now that trade deals have been clinched with the European Union and Japan, the U.S. looks to focus on China as the world's two biggest economies prepare for high-stakes talks. Negotiations between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to start on Monday in Stockholm. That comes as a trade truce between the two sides is due to end Aug. 12, though they are reportedly going to extend the deadline by 90 days. U.S. deals with Japan and the EU could offer a blueprint for China. The EU will invest $600 billion in the U.S., buy $750 billion of American energy products and purchase 'vast amounts' of weapons, according to Trump. It comes a week after a similar agreement with Japan, which vowed to invest $550 billion in key U.S. industrial sectors. Both the EU and Japan will face a 15% tariff on most of their exports to the U.S. Bessent highlighted the $550 billion pledge as a key reason the U.S. and Japan were able to settle on a levy that was lower than the 25% rate Trump had threatened earlier. 'They got the 15% rate because they were willing to provide this innovative financing mechanism,' he told Bloomberg TV on Wednesday, when asked if other countries could get a similar rate. Similarly, Trump had hinted that the EU would have to 'buy down' the threatened tariff rate of 30% and pointed to the Japan deal. But talks with Beijing may be tougher. 'When Japan broke down and made a deal the EU had little choice,' Jamie Cox, managing partner for Harris Financial Group, said in a note on Sunday. 'The biggest piece in the trade deal puzzle still remains, and the Chinese are unlikely to be as willing to fold.' Without a lasting agreement between the U.S. and China, tariffs could soar back to prohibitively high levels that would effectively cut off trade. In April, Trump had set tariffs on China at 145%, prompting Beijing to retaliate with its own levy of 125%. Meanwhile, the U.S. has reached deals elsewhere in Asia, with the Philippines and Indonesia facing 19% tariffs while Vietnam has a 20% duty. That's as Trump seeks to discourage the trans-shipment of Chinese goods via other countries in the region. Any pledges of investment in the U.S. also come as Trump's tariffs face legal challenges, with a court hearing scheduled Thursday on whether the president has authority under the International Emergency Economic Powers Act to impose wide-ranging duties. On Sunday, European Commission President Ursula von der Leyen confirmed that the EU's $750 billion in U.S. energy purchases would come over the next three years, meaning they will happen while Trump is in office. But U.S. tariffs could be invalidated before any money is spent, and Wall Street is skeptical that Japan will fully deliver on a target that isn't a binding commitment. Analysts at Piper Sandler have concluded that Trump's tariffs are illegal and noted that the $550 billion Japanese investment comes with few concrete details. 'Our trading partners and major multinationals know Trump's tariffs are on shaky legal ground,' they wrote. 'Therefore, we find it hard to believe many of them are going to make massive investments in the US they would not have otherwise made in response to tariffs that may not last.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
- Bloomberg
Who Buys the F-150s, and More Japan Deal Mysteries
The long-awaited trade deal between the US and Japan has investors celebrating after months of uncertainty. But as the song goes, nagging questions always remain. Who is going to buy the 'cars, SUVs and trucks' that President Donald Trump has promised to sell? Who is going to purchase the 100 Boeing jets? And what possible structure could the $550 billion fund, allegedly financed by Tokyo with 90% of profits going to US, actually take?
