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 Hub Group (NASDAQ: HUBG ) dropped as much as 11% in early trading today, after releasing earnings and being downgraded by an analyst.
So what: During the fourth quarter, the company reported a 5% increase in revenue, to $801 million, and a $0.05 jump in earnings, to $0.51 per share. The bottom line beat estimates by a penny, but top-line growth was disappointing compared to what Wall Street expected. As a result, Stifel Nicolaus came out and downgraded the stock today from a buy rating to hold.
Now what: It was a strange day for those who watch Hub Group. Shares traded down sharply in the opening minutes of trading, as a few large orders cleared the market. But shares soon recovered, and climbed most of the day to near a flat finish. I think that's appropriate given earnings results were mixed, and the fact that we don't take analyst downgrades too seriously at The Motley Fool. I don't think there should be a big change in your investment thesis today, but I would keep an eye on the revenue line going forward, because that's what the company needs to improve if it's going to live up to its 21 P/E ratio.
Interested in more info on Hub Group? Add it to your watchlist by clicking here.