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 FuelCell Energy Inc (NASDAQ:FCEL) jumped as much as 10.8% today after getting an upgrade from an analyst.
So what: Stifel Nicolaus resumed coverage on FuelCell and said they saw positive trends in the industry, as fuel cells are now competitive with renewable energy sources of electricity. They also put a $2.90 price target on the stock, which after today indicates a 19% upside over the next year if the prediction is correct.
Now what: Analyst ratings can often affect stocks short-term, but we should be careful buying on the bump. Remember that FuelCell isn't profitable and has been diluting shareholders regularly over the past few years. Until the company can turn net income positive I'll take a cautious approach and sit on the sidelines.
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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.