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 ITT Educational Services (NYSE: ESI) surged 11% after the for-profit college reported better-than-expected quarterly results.

So what: ITT's new student enrollment fell 9.4% in October-December, its first drop in a decade, but with the sector still under intense government scrutiny, investors are obviously relieved it wasn't a whole lot worse. For example, industry leaders Apollo Group (Nasdaq: APOL) and Strayer (Nasdaq: STRA) posted student start declines earlier this month of 42% and 20%, respectively.

Now what: I'd be cautious about ITT's market-topping results. With still so much uncertainty about looming regulation, ITT offered a very wide 2011 earnings target of $8.50-$10.50 , representing a profit decline of 6%-25% from 2010. So unless you're an investor who just craves volatility and a wide-range of outcomes, it's probably best to stay on the sidelines for now.


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