July 26, 2012
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 Basic Energy Services (NYSE: BAS ) rose 10% today after the company was upgraded by an analyst.
So what: When Goldman Sachs talks, investors listen, and that was the driver of shares today. Analysts at Goldman upgraded the stock all the way from sell to buy, and shares rocketed higher as a result.
Now what: We at The Motley Fool don't take analyst ratings too seriously, but I will pay attention to the company's earnings report, due out tonight. The market is expecting $363.3 million in revenue and $0.41 in earnings per share, and this will be the yardstick by which the company is measured in the near term. If you're looking at shares, I would wait to see how earnings look rather than buying on an analyst upgrade.
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