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 specialty household items retailer Aaron's (NYSE: AAN ) rose more than 11% in early trading on huge volume after reporting better-than-expected first-quarter earnings.
So what: Revenue rose 8% to $532.7 million, while profits improved 22% to $0.55 per share. Wall Street had been calling for higher revenue but only $0.51 in per-share earnings, according to Yahoo! Finance data.
Now what: Aaron's still looks reasonably priced -- even after today's pop in the share price. The stock trades for 12.2 times forward earnings, below the S&P average and less than half of the sector average of 25.81. Investors on our Motley Fool CAPS community also like the stock, giving it four out of five stars. Today's buyers may be getting a growth story that's just getting started.
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