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 engineering and construction company McDermott International (NYSE: MDR) climbed 13% on Friday after its quarterly results easily topped Wall Street expectations.

So what: The stock has been beaten over the past year on concerns over slowing drilling activity, but a big first-quarter earnings beat -- EPS from continuing operations of $0.25 versus the consensus of just $0.15 -- suggests that Wall Street's worst fears are overblown. In fact, McDermott's backlog surged 21% from the year-ago period to $5.8 billion, triggering plenty of turnaround optimism among investors.   

Now what: Don't let today's pop prevent you from looking into the stock. "With record bookings, an all-time high backlog and a continued strong balance sheet, McDermott is building a solid foundation for the future," said CEO Stephen Johnson. More important, with the stock still off about 50% from its 52-week high and trading at a forward P/E of 10, you won't have to pay a high price to buy into that bullishness.

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