Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
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 electrical contractor MYR Group (Nasdaq: MYRG ) fell as much as 15% in early trading, after announcing a disappointing earnings report.
So what: Revenue rose 19%, to $250.6 million, and earnings per share more than doubled, to $0.41. But analysts were expecting more growth on the top line and another $0.03 more in profit per share on the bottom line, so the stock was sent to the doghouse.
Now what: The company is still growing and generating strong profits, but investors never like missing earnings targets and may also be looking at a decline in backlog. I think this is partially due to economic and political uncertainty in the short-term that has held back infrastructure investment.
Shares are trading at about 15 times trailing earnings and, with strong growth potential in the future as we upgrade our electric infrastructure, I think MYR provides a lot of opportunity. It's contrarian today, but I think this is a nice discount for investors who have an eye on the future.
Interested in more info on MYR Group? Add it to your watchlist by clicking here.