What Happened?

A number of stocks fell in the afternoon session after reports revealed escalating geopolitical tensions in the Middle East. Oil prices declined amidst the uncertainty. Such geopolitical events typically lead to a 'risk-off' sentiment among investors, who tend to sell equities and seek safer assets. The market's negative reaction occurred despite comments from the U.S. President suggesting the conflict was nearly complete, indicating that investors are weighing the immediate military actions more heavily than political assurances.

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:

• Terrestrial Telecommunication Services company Cogent (NASDAQ: CCOI) fell 2.6%. Is now the time to buy Cogent? Access our full analysis report here, it’s free.
• Data & Business Process Services company ADP (NASDAQ: ADP) fell 2.9%. Is now the time to buy ADP? Access our full analysis report here, it’s free.
• Professional Staffing & HR Solutions company Barrett (NASDAQ: BBSI) fell 2.5%. Is now the time to buy Barrett? Access our full analysis report here, it’s free.
• Safety & Security Services company Brink's (NYSE: BCO) fell 2.7%. Is now the time to buy Brink's? Access our full analysis report here, it’s free.
• Data & Business Process Services company Equifax (NYSE: EFX) fell 2.6%. Is now the time to buy Equifax? Access our full analysis report here, it’s free.

Zooming In On ADP (ADP)

ADP’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 15 days ago when the stock dropped 3.6% on the news that 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.

ADP is down 14.3% since the beginning of the year, and at $216.78 per share, it is trading 33.7% below its 52-week high of $326.81 from June 2025. Investors who bought $1,000 worth of ADP’s shares 5 years ago would now be looking at an investment worth $1,191.

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