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 Recovery (NASDAQ: ERII ) jumped a whopping 36% today after reporting earnings.
So what: Fourth-quarter revenue was up 54% to $23.2 million and net income swung from a loss to a $6.7 million, or $0.13 per share, profit. That's $0.05 better than estimates and revenue was better than expected as well.
Now what: The demand for desalination products in the Middle East and western U.S. helped drive revenue and earnings growth. Given likely growth in this business, I think there's a lot of potential for Energy Recovery. Shares aren't cheap right now and analysts only expect a $0.02-per-share profit last year but the decade-long story is worth paying for right now.
Another great stock pick to keep an eye on
There's a huge difference between a good stock and a stock that can make you rich. 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.