What Happened?

A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

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:

• Sit-Down Dining company First Watch (NASDAQ: FWRG) fell 3.4%. Is now the time to buy First Watch? Access our full analysis report here, it’s free.
• Modern Fast Food company Wingstop (NASDAQ: WING) fell 4.7%. Is now the time to buy Wingstop? Access our full analysis report here, it’s free.
• Modern Fast Food company CAVA (NYSE: CAVA) fell 3%. Is now the time to buy CAVA? Access our full analysis report here, it’s free.
• Modern Fast Food company Shake Shack (NYSE: SHAK) fell 5.3%. Is now the time to buy Shake Shack? Access our full analysis report here, it’s free.
• Sit-Down Dining company Bloomin' Brands (NASDAQ: BLMN) fell 6.1%. Is now the time to buy Bloomin' Brands? Access our full analysis report here, it’s free.

Zooming In On Bloomin' Brands (BLMN)

Bloomin' Brands’s shares are extremely volatile and have had 51 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 previous big move we wrote about was 28 days ago when the stock dropped 13.8% on the news that Bank of America Securities trimmed its price target on the stock to $5 from $6 and maintained its Underperform rating. This action signaled a less optimistic view from the investment bank regarding the stock's future performance. A price target represents the level at which an analyst believes a stock is fairly valued. Lowering this target, alongside an "Underperform" rating, suggested that BofA Securities expected the stock to perform worse than the overall market. Such negative commentary from a financial analyst often influences investor sentiment, which can lead to a drop in a company's stock price.

Bloomin' Brands is down 3.4% since the beginning of the year, and at $6.16 per share, it is trading 48.2% below its 52-week high of $11.90 from February 2025. Investors who bought $1,000 worth of Bloomin' Brands’s shares 5 years ago would now be looking at an investment worth $241.35.

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