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 generator manufacturer Generac Holdings (Nasdaq: GNRC) jumped as high as 10.7% above last night's closing price, on about twice its average trading volume.

So what: Fourth-quarter earnings of $0.49 per share beat the analyst consensus by $0.02, and the revenue outperformance was even stronger. New products and a stronger distribution system are expected to keep the good times rolling throughout 2011 -- even in the chronically challenged residential market.

Now what: Generac plans to raise prices while cutting costs this year, which sounds cheeky, but the company has the end-market respect it needs in order to pull it off without losing sales. Generac also sports stronger margins than competitors Cummins (NYSE: CMI) and Honda Motor (NYSE: HMC) to begin with. This five-star CAPS stock deserves more attention and respect from investors, too.

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