Applied Digital, CoreCivic, Kforce, Insperity, and UL Solutions Shares Are Soaring, What You Need To Know

What Happened?

A number of stocks jumped in the afternoon session after the Consumer Price Index (CPI) report bolstered expectations for a Federal Reserve interest rate cut despite showing persistent inflation. 

The August CPI data, a key measure of inflation, showed prices rose 2.9% annually, in line with expectations. While inflation remains above the Federal Reserve's 2% target, investors were focusing on other signs of a cooling economy, particularly a weakening labor market. As a result, the market widely anticipated that the Fed would cut interest rates at its September meeting to support the economy. Investors priced in multiple rate cuts by year-end, which boosted market sentiment and sent Treasury yields lower.

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:

• Enterprise Networking company Applied Digital (NASDAQ:APLD) jumped 0.7%. Is now the time to buy Applied Digital? Access our full analysis report here, it’s free.
• Safety & Security Services company CoreCivic (NYSE:CXW) jumped 4.4%. Is now the time to buy CoreCivic? Access our full analysis report here, it’s free.
• Professional Staffing & HR Solutions company Kforce (NYSE:KFRC) jumped 5.4%. Is now the time to buy Kforce? Access our full analysis report here, it’s free.
• Professional Staffing & HR Solutions company Insperity (NYSE:NSP) jumped 5.8%. Is now the time to buy Insperity? Access our full analysis report here, it’s free.
• Government & Technical Consulting company UL Solutions (NYSE:ULS) jumped 3.9%. Is now the time to buy UL Solutions? Access our full analysis report here, it’s free.

Zooming In On Insperity (NSP)

Insperity’s shares are somewhat volatile and have had 12 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 1 day ago when the stock dropped 4.9% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading. Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% last month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.

Insperity is down 28.3% since the beginning of the year, and at $54.12 per share, it is trading 42.6% below its 52-week high of $94.21 from March 2025. Investors who bought $1,000 worth of Insperity’s shares 5 years ago would now be looking at an investment worth $860.28.

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