What Happened?
A number of stocks fell in the afternoon session after escalating geopolitical tensions in the Middle East sparked a surge in oil prices and stoked fears of a wider economic conflict, as Trump warned the conflict could last up to a month.
The sell-off was broad, with the Dow Jones Industrial Average falling by more than 1,000 points, while the S&P 500 and Nasdaq Composite each dropped over 2%. Investor anxiety centered on a conflict involving Iran, which reportedly led to the shutdown of the Strait of Hormuz, a critical channel for global oil shipping. The disruption sent oil prices soaring, with international benchmark Brent crude topping $84 a barrel. These higher energy costs are fueling concerns about worsening inflation, which could further pressure households and businesses, and investors are growing worried that a prolonged conflict could inflict sustained damage on the global economy.
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:
- Shelf-Stable Food company Hain Celestial (NASDAQ: HAIN) fell 5%. Is now the time to buy Hain Celestial? Access our full analysis report here, it’s free.
- Personal Care company Edgewell Personal Care (NYSE: EPC) fell 4.4%. Is now the time to buy Edgewell Personal Care? Access our full analysis report here, it’s free.
- Personal Care company Herbalife (NYSE: HLF) fell 5.4%. Is now the time to buy Herbalife? Access our full analysis report here, it’s free.
- Personal Care company Inter Parfums (NASDAQ: IPAR) fell 3.7%. Is now the time to buy Inter Parfums? Access our full analysis report here, it’s free.
- Beverages, Alcohol, and Tobacco company Celsius (NASDAQ: CELH) fell 2.6%. Is now the time to buy Celsius? Access our full analysis report here, it’s free.
Zooming In On Herbalife (HLF)
Herbalife’s shares are very volatile and have had 29 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 biggest move we wrote about over the last year was 3 months ago when the stock gained 10.8% on the news that Argus Research upgraded its rating on the company's stock to 'Buy' from 'Hold' and set a new price target of $15.
The research firm pointed to expected revenue growth from new products as the key reason for its positive view. Argus projected that Herbalife would achieve mid-single-digit revenue growth in 2025, which would end a three-year period of declines. The firm specifically noted two products, a skin-health product called HL/Skin and a weight-loss supplement named MultiBurn, as likely drivers for accelerated growth in 2026. The upgrade suggested a potential positive outlook for the company's future performance.
Herbalife is up 40.2% since the beginning of the year, but at $17.97 per share, it is still trading 9.9% below its 52-week high of $19.96 from February 2026. Investors who bought $1,000 worth of Herbalife’s shares 5 years ago would now be looking at an investment worth $388.54.
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