Why West Corporation Shares Jumped

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 communication service provider West Corporation (NASDAQ: WSTC  ) jumped as much as 10% today after the company got positive ratings from analysts.

So what: Analysts at both Citigroup and William Blair both initiated coverage on the stock today. Citigroup gave the stock a buy rating and a $25 price target while William Blair said the stock would outperform the market.

Now what: Stocks often jump after positive ratings come out or analysts give upgrades, but the market doesn't usually remember for long. I wouldn't look at this as a buy sign, and would instead focus on the decline in operating income and net income reported last week. Those numbers suggest being cautious, and that's why I'll pass on the stock today.

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

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