Flex, JELD-WEN, Graham Corporation, Coherent, and Planet Labs shares skyrocket, what you need to know
What happened?
A number of stocks jumped in the afternoon session after falling crude oil prices fueled a broad market rebound and eased cost concerns surrounding artificial intelligence data center construction. CNBC reported that the major indexes rallied as oil prices dropped. In the session, Brent was down about 4% to around $94 a barrel and West Texas Intermediate was down about 3% to around $87. United States equities rallied to claw back losses from the prior week as retreating crude benchmarks alleviated inflationary headwinds across major industries.
Lower energy prices are particularly advantageous for energy-intensive sectors, offering timely relief to developers scaling artificial intelligence facilities. Construction of hyperscale data centers requires substantial capital and power resources, making sustained high energy costs a threat to projected operating margins. As fuel costs swung lower, concerns regarding buildout budgets diminished, driving broad-based investor optimism across the technology and infrastructure ecosystem.
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 & manufacturing company Flex
FLEX jumped 12.2%. Is now the time to buy Flex? Access our full analysis report here, it’s free. - Home construction materials company JELD-WEN
JELD jumped 12.1%. Is now the time to buy JELD-WEN? Access our full analysis report here, it’s free. - Engineered components and systems company Graham Corporation
GHM jumped 15.4%. Is now the time to buy Graham Corporation? Access our full analysis report here, it’s free. - Electronic components & manufacturing company Coherent
COHR jumped 17.3%. Is now the time to buy Coherent? Access our full analysis report here, it’s free. - Data & business process services company Planet Labs
PL jumped 13.2%. Is now the time to buy Planet Labs? Access our full analysis report here, it’s free.
Zooming in on Coherent (COHR)
Coherent’s shares are extremely volatile and have had 90 moves greater than 5% over the last year. But moves this big are rare even for Coherent and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 5.6% on the news that StoneX analyst Cody Acree initiated coverage on the company with a Buy rating. According to StreetInsider, Acree started Coherent at Buy with a $425 price target, which the firm said implies about 103% upside. The earnings case is the expansion of six-inch indium phosphide capacity. Management has targeted a doubling of that capacity in the September quarter and more than another doubling by the end of 2027, the capacity used for the lasers that go into AI data-center optics. Coherent has more than 10 customer engagements each in co-packaged optics and near-packaged optics, and it expects revenue from its PhotonLink platform to start ramping in the fourth quarter of calendar 2026.
Coherent is up 17% since the beginning of the year, but at $227.36 per share, it is still trading 46.7% below its 52-week high of $426.89 from June 2026. Investors who bought $1,000 worth of Coherent’s shares 5 years ago would now be looking at an investment worth $3,541.
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