February 28, 2013
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 energy equipment supplier Chart Industries (NASDAQ: GTLS ) jumped 10% today, after reporting earnings.
So what: Fourth quarter revenue jumped 38% from a year ago. to $303.9 million, and was ahead of estimates of $277.6 million. On the bottom line, adjusted earnings per share improved to $0.80, from $0.51 a year ago, and were also ahead of the $0.76 estimate.
Now what: The company is leveraging a growing LNG market, which will drive results for a few years. Considering the forward P/E ratio of 21, and the level of growth in appealing markets, the stock is fairly priced, even after today's jump. I'd like to buy in on a pullback after today's pop, but long-term, I think Chart is on the right track and shares will continue to move higher.
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