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 outsourcing and advisory specialist Resources Connection (Nasdaq: RECN) plummeted 18% today after its quarterly results came in well below analyst expectations.

So what: Resources Connection reported a third-quarter profit of just $753,000, or $0.02 per share, versus the average analyst estimate of $0.07 per share. Although the company's revenue increased a solid 9.8%, pricing pressure helped lead to a 158-basis-point decline in gross margins.

Now what: At first glance, today's near-20% plunge looks to be a tad overdone. While the recent development of lower billing rates is cause for some concern, management seems confident that current industry pricing is irrational and that the trend will reverse in fairly short order. With pent-up demand growing in clients who have already delayed projects due to the recession, Mr. Market might be providing investors with an enticing long-term entry point.

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