What Happened:

Shares of railway infrastructure company L.B. Foster (NASDAQGS:FSTR) fell 21.5% in the morning session after the company reported second-quarter earnings results. L.B. Foster exceeded analysts' revenue expectations. On the other hand, its EPS missed, and its EBITDA guidance for the full year fell short of Wall Street's estimates. Overall, this quarter could have been better.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy L.B. Foster? Access our full analysis report here, it's free.

What is the market telling us:

L.B. Foster's shares are not very volatile than the market average and over the last year have had only 16 moves greater than 5%. Moves this big are very rare for L.B. Foster and that is indicating to us that this news had a significant impact on the market's perception of the business.

L.B. Foster is down 27% since the beginning of the year, and at $16.28 per share it is trading 45.2% below its 52-week high of $29.72 from May 2024. Investors who bought $1,000 worth of L.B. Foster's shares 5 years ago would now be looking at an investment worth $700.82.

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