What Happened?

A number of stocks fell in the afternoon session as concerns grew over the risk of stagflation, a mix of slow economic growth and high inflation, due to the ongoing conflict with Iran. The war escalated into a global energy supply shock, with disruptions to cargo in the Strait of Hormuz pushing Brent crude oil prices above $100 per barrel. This surge in energy costs raised fears of persistent inflation that could harm the global economy. Compounding these concerns, recent data showed the U.S. economy was already weakening before the conflict, with the fourth-quarter 2025 growth estimate revised down to a sluggish 0.7% annual rate. This combination of slowing growth and rising inflation had investors worried, as it complicates the Federal Reserve's policy path and threatens both corporate profits and consumer spending power.

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:

• Electronic Components company Novanta (NASDAQ: NOVT) fell 3.3%. Is now the time to buy Novanta? Access our full analysis report here, it’s free.
• Heavy Transportation Equipment company Greenbrier (NYSE: GBX) fell 2.3%. Is now the time to buy Greenbrier? Access our full analysis report here, it’s free.
• Waste Management company Casella Waste Systems (NASDAQ: CWST) fell 2.5%. Is now the time to buy Casella Waste Systems? Access our full analysis report here, it’s free.
• Automobile Manufacturing company Rivian (NASDAQ: RIVN) fell 2.7%. Is now the time to buy Rivian? Access our full analysis report here, it’s free.

Zooming In On Novanta (NOVT)

Novanta’s shares are very volatile and have had 20 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 10 days ago when the stock dropped 2.6% on the news that geopolitical tensions in the Middle East sent crude oil prices soaring, stoking fears of resurgent inflation. The price for Brent crude, the international benchmark, leaped over 6% to $82.57 a barrel amid an escalating war with Iran, which has threatened to block the Strait of Hormuz. This critical waterway handles about 20% of global oil flow. A sustained increase in energy prices could translate to higher inflation, potentially impacting consumer spending and corporate earnings. This scenario also complicates the Federal Reserve's path forward, as persistent inflation could delay anticipated interest rate cuts that investors have been counting on to support the economy.

Novanta is up 4.3% since the beginning of the year, but at $115.87 per share, it is still trading 20.8% below its 52-week high of $146.39 from February 2026. Investors who bought $1,000 worth of Novanta’s shares 5 years ago would now be looking at an investment worth $898.67.

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