What Happened?

Shares of snow and ice equipment company Douglas Dynamics (NYSE:PLOW) fell 13.8% in the afternoon session after the company reported underwhelming third-quarter earnings results and provided full-year revenue and EBITDA guidance, which fell short of Wall Street's estimates. Notably, sales declined year on year, and the topline weakness was attributed to low snowfall in recent snow seasons, leading to lower volumes. Overall, this was a weaker quarter.

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 Douglas Dynamics? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Douglas Dynamics’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Douglas Dynamics and indicate this news significantly impacted the market’s perception of the business.

Douglas Dynamics is down 21.8% since the beginning of the year, and at $22.64 per share, it is trading 27% below its 52-week high of $31.02 from December 2023. Investors who bought $1,000 worth of Douglas Dynamics’s shares 5 years ago would now be looking at an investment worth $485.00.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.