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 Cooper Tire & Rubber
So what: Revenue grew 15% to $922 million but fell well short of the $980 million analysts expected. More concerning was earnings per share, which fell to $0.18 from $0.70 a year ago and also fell short of the $0.41 analysts expected.
Now what: Raw material prices are putting pressure on earnings along with slow consumer demand. Trailing P/E and forward P/E ratios are hovering around 5, so investors willing to wait out the current pressures may be rewarded. It's tough to buy in today, but as the market settles down I'll keep an eye on shares that could be primed for a rebound.
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