What Happened?
A number of stocks jumped in the afternoon session after crude oil pushed back above $100 a barrel, with Brent near $111 and WTI close to $108.
The move followed fresh comments from President Trump that "the Clock is Ticking" for Iran, a drone attack on the UAE's Barakah nuclear plant over the weekend, and the continued closure of the Strait of Hormuz, a chokepoint that normally carries about 20% of the world's oil. The Energy Select Sector SPDR Fund (XLE) gained roughly 2.4%, with Exxon, Chevron and ConocoPhillips leading.
Supply data added to the squeeze: U.S. crude inventories fell 4.3 million barrels in early May, dropping below the five-year average, while natural gas futures jumped. The risk for investors remained symmetrical as any de-escalation could reverse the move just as quickly.
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:
- Mixed or Offshore Upstream E&P company Gevo (NASDAQ: GEVO) jumped 4.8%. Is now the time to buy Gevo? Access our full analysis report here, it’s free.
- Oilfield Services company Helmerich & Payne (NYSE: HP) jumped 4.8%. Is now the time to buy Helmerich & Payne? Access our full analysis report here, it’s free.
- Oilfield Services company ProFrac (NASDAQ: ACDC) jumped 4.6%. Is now the time to buy ProFrac? Access our full analysis report here, it’s free.
- U.S. Shale E&P company Cactus (NYSE: WHD) jumped 4.3%. Is now the time to buy Cactus? Access our full analysis report here, it’s free.
- Oilfield Services company Patterson-UTI (NASDAQ: PTEN) jumped 4.4%. Is now the time to buy Patterson-UTI? Access our full analysis report here, it’s free.
Zooming In On Gevo (GEVO)
Gevo’s shares are extremely volatile and have had 55 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 previous big move we wrote about was 10 days ago when the stock dropped 10.1% on the news that the company reported disappointing first-quarter 2026 financial results, missing both revenue and earnings per share (EPS) estimates.
Gevo announced a GAAP loss of $0.09 per share, a significant miss compared to Wall Street's consensus estimate of a $0.02 loss per share. The company's revenue also fell short of expectations, coming in at $42.95 million against forecasts of $45.21 million. While Gevo did beat adjusted EBITDA estimates, investors focused on the top-line and bottom-line misses, which painted the picture of a weaker-than-expected quarter.
Gevo is down 15.3% since the beginning of the year, and at $1.75 per share, it is trading 37.1% below its 52-week high of $2.78 from March 2026. Investors who bought $1,000 worth of Gevo’s shares 5 years ago would now be looking at only $254.37.
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