What Happened?

Shares of auto services provider Monro (NASDAQ:MNRO) fell 26.8% in the morning session after the company reported weak fourth quarter (FQ3 2025) results. Its same-store sales fell, coming in below expectations. This led to a meaningful EPS miss. Management commented on January trends so far, which are weak due to extreme winter weather that seems to be hurting store traffic. Overall, this quarter could have been better.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Monro? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Monro’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for Monro and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 6 months ago when the stock gained 15.3% on the news that the company reported second quarter earnings results which blew past analysts' gross margin and EPS expectations. In addition, the company continued to expand its footprint, as it added new locations during the quarter, hinting at potential new growth opportunities. Overall, this was a really good quarter that should please shareholders.

Monro is down 15.6% since the beginning of the year, and at $20.71 per share, it is trading 38.3% below its 52-week high of $33.57 from February 2024. Investors who bought $1,000 worth of Monro’s shares 5 years ago would now be looking at an investment worth $294.40.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.