Hub Group Shares Plunged: What You Need to Know (HUBG)

Hub Group Shares Plunged: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 shipping and logistics provider Hub Group (Nasdaq: HUBG ) fell as much as 14% in early trading as third-quarter earnings came up short of estimates. The stock closed down roughly 10%.

So what: Analysts at Raymond James and Stifel Nicolaus downgraded shares of Hub Group on fears of limited upside, The Associated Press reported. The underlying business isn't a concern. Revenue soared 59% to $760.4 million while per-share profit improved 29% to $0.44 a share in Q3. Analysts were nevertheless looking for $0.46, according to data aggregated by Yahoo! Finance.

Now what: For the most part, the downgrades appear to reflect short-term thinking about risk. Maybe that's fair, but with the stock trading for marginally above long-term analyst estimates, today's sell-off may prove to be an opportunity for buy-to-hold investors. Do you agree? Disagree? Please weigh in using the comments box below.

Interested in more info Hub Group? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.