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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 heavy construction products supplier Texas Industries (NYSE: TXI ) cemented big gains of as much as 12% following an upgrade from research firm Sidoti.
So what: In a report released earlier today, Sidoti upgraded Texas Industries to "buy" from "neutral." The upgrade follows TXI's first-quarter earnings release from three weeks ago that saw the company miss Wall Street's earnings estimates by reporting a wider-than-expected loss, despite noting that shipments are improving, pricing is stabilizing, and margins are showing signs of correcting in the right direction.
Now what: As usual, it's rarely worth paying much credence to the one-day pops and drops that are caused by analyst upgrades and downgrades as they don't often play into the long-term scheme of an investment. On a secondary note, I've never even heard of Sidoti despite my 14 years of investing, so I'm even less inclined to chase this one-day rally higher. Until TXI can cement its shareholders a bottom line profit, I'd just assume leave it on the sidelines.
Craving more input? Start by adding Texas Industries to your free and personalized Watchlist so you can keep up on the latest news with the company.