What Happened?

A number of stocks fell in the afternoon session after U.S. stocks fell 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:

• Gas and Liquid Handling company Gorman-Rupp (NYSE: GRC) fell 3%. Is now the time to buy Gorman-Rupp? Access our full analysis report here, it’s free.
• Specialty Equipment Distributors company Custom Truck One Source (NYSE: CTOS) fell 4.9%. Is now the time to buy Custom Truck One Source? Access our full analysis report here, it’s free.
• General Industrial Machinery company Kadant (NYSE: KAI) fell 4.7%. Is now the time to buy Kadant? Access our full analysis report here, it’s free.
• Home Construction Materials company Gibraltar (NASDAQ: ROCK) fell 2.2%. Is now the time to buy Gibraltar? Access our full analysis report here, it’s free.
• HVAC and Water Systems company Northwest Pipe (NASDAQ: NWPX) fell 2.5%. Is now the time to buy Northwest Pipe? Access our full analysis report here, it’s free.

Zooming In On Custom Truck One Source (CTOS)

Custom Truck One Source’s shares are extremely volatile and have had 31 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 2 days ago when the stock gained 4.9% on the news that DA Davidson reiterated its Buy rating on the company, framing the stock's recent price drop as a buying opportunity. The analyst's support came after the company reported mixed fourth-quarter 2025 results the previous day, which caused the stock to fall despite some strong numbers. While Custom Truck One Source's revenue of $528.2 million missed expectations, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of around $121 million and adjusted earnings per share (EPS) of $0.09 both beat analyst estimates. The company also pointed to a positive outlook for 2026, with expected growth in both revenue and EBITDA. The vote of confidence from the analyst firm appeared to reassure investors after the initial negative reaction to the revenue miss.

Custom Truck One Source is flat since the beginning of the year, and at $5.80 per share, it is trading 23.3% below its 52-week high of $7.56 from February 2026. Investors who bought $1,000 worth of Custom Truck One Source’s shares 5 years ago would now be looking at an investment worth $654.80.

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