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: Wabco Holdings (NYSE: WBC) shares jumped 10% today on higher earnings guidance.

So what: Demand for commercial vehicle parts has been stronger than expected from Europe and China, improving expectations for the fourth quarter. Earnings-per-share guidance was increased from $0.62-$0.72 to $0.88-$0.93, much higher than analysts' expectations of $0.71 per share.

Now what: Wabco has consistently beaten earnings estimates, and it looks like this quarter will be no different. With a forward price/earnings ratio of 17, the stock seems reasonably priced, and positive earnings momentum should help push shares higher. At the risk of missing out on a continued surge, I would like to see shares pull back in the coming days before I jump in.

Interested in more info on Wabco? Add it to your watchlist.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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