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 cosmetics company Revlon (NYSE: REV) surged a whopping 27% in intraday trading today after its quarterly results easily exceeded Wall Street expectations.

So what: Driven largely by strong Asian and North American sales, Revlon posted an adjusted fourth-quarter profit of $0.68 per share, blowing out the average analyst estimate of just $0.23 per share. New marketing initiatives helped the company post its first U.S. sales gain in more than a year, with its Revlon and Almay brands being particularly popular of late.

Now what: Investors should remain cautious about buying into Revlon. While the gain in U.S. sales is certainly encouraging, I'd wait a few more quarters to make sure it's a positive trend that we're seeing, rather than a one-time anomaly. With the stock now up about 40% over the past three months, the margin of safety on the Revlon turnaround seems particularly small. (Click here to read about today's drop in Liz Claiborne shares.)

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