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 pharmaceutical distributor Aceto Corporation (NASDAQ: ACET ) fell 13% today after the company reported earnings.
So what: Fiscal second-quarter sales were up 2.2%, to $116.5 million, and net income was up nearly 50%, to $6.8 million, or $0.24 per share. Revenue was $2.7 million below estimates, but early media reports from Thomson Reuters and others said the company missed by $30.5 million, which exaggerated the issue.
Now what: Results were largely in-line with estimates, and even though reporting was misrepresented, I think the issues will pass quickly. There's really nothing alarming here, and investors looking to get in should see this as a buying opportunity. Shares now trade at just 14.7 times 2014 estimates and, considering the fact that Aceto has beaten estimates two of the last four quarters and is growing the bottom line quickly, I think the stock could be in for a nice run.
One stock pick for you today
Are you looking for a great long-term investing opportunity? The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.