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 Powell Industries, (NASDAQ:POWL) jumped as much as 16% today after being upgraded by an analyst.
So what: Stifel Nicolaus upgraded Powell to a buy rating, and increased its price target to $70 per share. This comes just two days after the company announced fiscal first -uarter earnings net income of $8.3 million, or $0.68 per share.
Now what: In the earnings release earlier this week, management increased earnings guidance to between $2.85 and $3.35 per share. I'd read more into that than an analyst upgrade, which can often boost a stock short term while having little to no impact long term. Even the $70 price target doesn't leave a ton of upside for investors today, so if you're looking to get in, I'd let the day's pop wear off, and look at shares in a week or two.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.