Why Shares of IHS Jumped 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 information publisher IHS (NYSE: IHS  ) jumped as much as 13% in early trading after reporting earnings.

So what: The company said that revenue rose 12% to $414.2 million in the fourth quarter, well ahead of the $409.9 million analysts expected. Net income more than doubled to $46.4 million and excluding one-time items came in at $1.21 per share, also above estimates of $1.11.

Now what: This was a good quarter, but the stock also came with some strange movements today. The stock opened at $109.69, which was the high point of the day and may have been a sign of a little overexuberance on the part of one or two investors. Shares quickly fell to $100 and closed at $102.09. That's still a nice 5.6% gain but nothing like what we saw earlier.

It's often wise to stay away from trading in the first few minutes and the last few minutes of the day, until market makers get their bids and asks in and trading reaches a normal level -- and this is exactly why. Just a couple of hundred shares traded at today's high, and the buyer quickly lost nearly $10 per share in value. But after shares pulled back, I think this stock provides a nice buying opportunity for investors, considering the growth and earnings momentum from IHS.

Interested in more info on IHS? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2185517, ~/Articles/ArticleHandler.aspx, 10/22/2014 5:43:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement