Aaron's Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Aaron's (NYSE: AAN  ) shares jumped 13% today after the company announced earnings that beat expectations.

So what: In the quarter, Aaron's had revenue of $452.2 million and net income of $26.2 million, or $0.32 per share. Both numbers crushed analysts' expectations, pushing shares higher -- too high for a minute when a 12% increase triggered circuit breakers this morning.

Now what: Earnings were up 6% and revenue was up 9%, showing Aaron's business is getting stronger. Aaron's rents and sells furniture, appliances, and computers. I like the stronger results, and a forward price/earnings of 12.5 looks very attractive considering newfound traction. I'm buying this move as the start of a move upward.

Interested in more info on Aaron's? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.

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