What Happened?
A number of stocks jumped in the afternoon session after markets continued to rally amid growing speculation of an impending interest rate cut by the Federal Reserve. Following a favorable Consumer Price Index (CPI) report, investors are increasingly betting on a rate reduction next month, a sentiment amplified by U.S. Treasury Secretary Scott Bessent's call for a significant cut. This has fueled a 'risk-on' environment across Wall Street. Lower interest rates are typically beneficial for growth-oriented sectors like healthcare, as they reduce the cost of borrowing for research and innovation and increase the present value of future earnings.
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:
- Drug Development Inputs & Services company Azenta (NASDAQ: AZTA) jumped 9.4%. Is now the time to buy Azenta? Access our full analysis report here, it’s free.
- Outpatient & Specialty Care company LifeStance Health Group (NASDAQ: LFST) jumped 10.8%. Is now the time to buy LifeStance Health Group? Access our full analysis report here, it’s free.
- Therapeutics company BioMarin Pharmaceutical (NASDAQ: BMRN) jumped 3.7%. Is now the time to buy BioMarin Pharmaceutical? Access our full analysis report here, it’s free.
- Specialized Medical & Nursing Services company AMN Healthcare Services (NYSE: AMN) jumped 6.1%. Is now the time to buy AMN Healthcare Services? Access our full analysis report here, it’s free.
- Generic Pharmaceuticals company ANI Pharmaceuticals (NASDAQ: ANIP) jumped 5.1%. Is now the time to buy ANI Pharmaceuticals? Access our full analysis report here, it’s free.
Zooming In On LifeStance Health Group (LFST)
LifeStance Health Group’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for LifeStance Health Group and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 11% on the news that the company reported mixed second-quarter 2025 results, delivering an earnings beat and a full-year profit forecast that topped Wall Street estimates. The mental healthcare provider's revenue for the quarter grew 10.6% year-over-year to $345.3 million, which was in line with analyst forecasts, driven by a 10.7% increase in sales volumes.
On the bottom line, the company demonstrated improved profitability, posting a GAAP loss of $0.01 per share. This marked a significant improvement from the $0.06 per-share loss in the same period last year and beat consensus estimates for a $0.03 loss. Looking ahead, management provided a full-year Adjusted EBITDA forecast with a midpoint of $145 million, above analyst expectations. However, the company's revenue guidance for the next quarter came in below estimates, creating a mixed picture for investors.
LifeStance Health Group is down 31.7% since the beginning of the year, and at $5.16 per share, it is trading 36.8% below its 52-week high of $8.17 from January 2025. Investors who bought $1,000 worth of LifeStance Health Group’s shares at the IPO in June 2021 would now be looking at an investment worth $235.62.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
