IPG Photonics 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: Shares of IPG Photonics (Nasdaq: IPGP  ) are up 13% following a steady climb throughout the day.

So what: Volume has risen rather dramatically, with 900,000 shares trading hands with an hour left in the trading day. That's up from a three-month average of 240,000 shares per day. The move looks like a continued reaction to the company’s earnings guidance, which crushed expectations last week.

Now what: Fellow Fool Eric Jhonsa wrote last week about how big of an earnings beat this was, and IPG's momentum has continued this week. Given its improving fundamentals, I think the stock has further still to run. The company’s forward P/E of 35 is a little expensive, but the growth IPG Photonics is experiencing makes this stock worth the price.

Interested in more info on IPG Photonics? Add it to your watchlist.

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 CAPS picks at TMFFlushDraw.

IPG Photonics is a Motley Fool Rule Breakers choice. The Fool owns shares of IPG Photonics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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