What Happened?
Shares of industrial components supplier NN (NASDAQ: NNBR) jumped 8.3% in the morning session after the company's stock gained ground amid a broader market rally as investors awaited a busy week of corporate earnings reports. There was no significant, company-specific news to explain the stock's jump. Instead, the move higher came as U.S. stock futures pointed to a stronger open for the major indices, suggesting a "risk-on" mood among investors helped lift shares across various sectors. Also, investors were expecting a heavy slate of earnings reports from major companies during the week. Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties.Investors were also likely looking ahead to NN's second-quarter 2025 earnings results, expected to be released around August 6th.
After the initial pop the shares cooled down to $2.04, up 2.8% from previous close.
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What Is The Market Telling Us
NN’s shares are extremely volatile and have had 59 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 6 months ago when the stock gained 20.2% on the news that the company reported impressive preliminary guidance, with full-year 2024 new business wins expected to exceed the high end of its previous guidance. Management added, "We will continue this pace of new business acquisition into 2025 and 2026 and have a $720 million pipeline to support it. 2025 is off to a great start with the simultaneous launch of fifty [50] new programs during the first quarter."
NN is down 35.6% since the beginning of the year, and at $2.04 per share, it is trading 52.1% below its 52-week high of $4.25 from December 2024. Investors who bought $1,000 worth of NN’s shares 5 years ago would now be looking at an investment worth $383.24.
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