Why Shares of Aceto Corporation Popped 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 ingredient distributor Aceto  (NASDAQ: ACET  ) jumped 10% today after being upgraded by an analyst.

So what: Analysts at Sidoti upgraded the stock from neutral to a buy rating. This comes less than two weeks after the stock plunged following a terrible earnings report that had revenue down 17% and net income off 29.5%.  

Now what: The fiscal third quarter was affected by timing of revenue recognition so it wasn't nearly as bad as it looked on the surface. It was important to take the long-term view of the stock's value, something that Sidoti apparently saw today. I wouldn't jump on the upgrade today, just because stocks often fall back after the initial pop, but keep an eye on performance long term because that's where Aceto's value will emerge and drive shares higher.

Will this stock be your next multi-bagger?
If you're looking for another stock ready to pop, give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2963686, ~/Articles/ArticleHandler.aspx, 8/31/2015 11:21:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated Moments ago Sponsored by:
DOW 16,511.32 -131.69 -0.79%
S&P 500 1,972.71 -16.16 -0.81%
NASD 4,795.27 -33.06 -0.68%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 10:58 AM
ACET $22.55 Down -0.21 -0.92%
Aceto Corp CAPS Rating: ****