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 cosmetics company Revlon (NYSE: REV) surged a whopping 27% in intraday trading today after its quarterly results easily exceeded Wall Street expectations.

So what: Driven largely by strong Asian and North American sales, Revlon posted an adjusted fourth-quarter profit of $0.68 per share, blowing out the average analyst estimate of just $0.23 per share. New marketing initiatives helped the company post its first U.S. sales gain in more than a year, with its Revlon and Almay brands being particularly popular of late.

Now what: Investors should remain cautious about buying into Revlon. While the gain in U.S. sales is certainly encouraging, I'd wait a few more quarters to make sure it's a positive trend that we're seeing, rather than a one-time anomaly. With the stock now up about 40% over the past three months, the margin of safety on the Revlon turnaround seems particularly small. (Click here to read about today's drop in Liz Claiborne shares.)

Interested in more info on Revlon? 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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