What Happened?
A number of stocks fell in the afternoon session after the February jobs report revealed an unexpected contraction in employment, with the healthcare industry showing significant job losses.
According to the Bureau of Labor Statistics, the economy lost 92,000 nonfarm payroll jobs, a stark reversal from the 50,000 gain that was anticipated by economists. The healthcare sector, typically a consistent source of job growth, shed 28,000 positions. This disappointing data has raised investor concerns about a potential economic slowdown, which could lead to reduced healthcare spending and demand for services, contributing to the sector's decline in the market.
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:
- Hospital Chains company Tenet Healthcare (NYSE: THC) fell 2.1%. Is now the time to buy Tenet Healthcare? Access our full analysis report here, it’s free.
- Research Tools & Consumables company Revvity (NYSE: RVTY) fell 3.5%. Is now the time to buy Revvity? Access our full analysis report here, it’s free.
- Research Tools & Consumables company Avantor (NYSE: AVTR) fell 2.8%. Is now the time to buy Avantor? Access our full analysis report here, it’s free.
- Drug Development Inputs & Services company Azenta (NASDAQ: AZTA) fell 3.2%. Is now the time to buy Azenta? Access our full analysis report here, it’s free.
- Specialty Pharmaceuticals company Elanco (NYSE: ELAN) fell 2.8%. Is now the time to buy Elanco? Access our full analysis report here, it’s free.
Zooming In On Revvity (RVTY)
Revvity’s shares are somewhat volatile and have had 12 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 11 days ago when the stock dropped 2.9% 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.
Revvity is down 5.6% since the beginning of the year, and at $92.65 per share, it is trading 21.6% below its 52-week high of $118.23 from March 2025. Investors who bought $1,000 worth of Revvity’s shares 5 years ago would now be looking at an investment worth $762.20.
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