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 digital media services specialist DG FastChannel (Nasdaq: DGIT) surged 12% in intraday trading Tuesday after its fourth-quarter results easily topped Wall Street's expectations.

So what: Fueled by a 61% jump in HD advertising revenue, DG FastChannel posted fourth-quarter GAAP earnings of $0.51 per share, versus the average analyst estimate of just $0.45 per share. DG FastChannel has been restructuring its business toward more of a retail offering, and judging by the recent results -- revenues, margins, and profits all grew in 2010 -- the transition seems to be going rather smoothly.

Now what: Even with today's pop, DG FastChannel looks like a decent value. Demand for HD content delivery should only continue to grow, and as President/COO Neil Nguyen puts it, "the DG Network is prepared for increasing HD volumes in 2011." More importantly, with a PEG ratio of just one, investors won't have to pay too high of a price to make that bet.

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

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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