ePlus (PLUS) Stock Trades Up, Here Is Why

What Happened?

Shares of IT solutions provider ePlus (NASDAQ:PLUS) jumped 4.2% in the afternoon session after the stock moved higher amid a broad market rally driven by hopes for lower interest rates. The broader market rallied strongly after the head of the Federal Reserve indicated in a highly anticipated speech that cuts to interest rates may be on the horizon, although a specific timeline was not provided. This signal of potentially lower borrowing costs fueled investor optimism, lifting major indexes like the Dow Jones, S&P 500, and Nasdaq.

After the initial pop the shares cooled down to $73.70, up 4% from previous close.

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What Is The Market Telling Us

ePlus’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 9 days ago when the stock gained 3% on the news that stocks continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.

ePlus is down 0.4% since the beginning of the year, and at $73.70 per share, it is trading 27.5% below its 52-week high of $101.67 from October 2024. Investors who bought $1,000 worth of ePlus’s shares 5 years ago would now be looking at an investment worth $1,883.

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