Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

0

Why Hub Group’s Shares Dropped Temporarily

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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


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

Compare Brokers

Fool Disclosure

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: 2226019, ~/Articles/ArticleHandler.aspx, 8/28/2016 10:20:05 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...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,395.40 -53.01 -0.29%
S&P 500 2,169.04 -3.43 -0.16%
NASD 5,218.92 6.71 0.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/26/2016 4:00 PM
HUBG $39.99 Down -0.09 -0.22%
Hub Group CAPS Rating: No stars

Advertisement