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 Knoll
So what: There doesn’t seem to be much news out today, but as fellow Fool Matt Koppenheffer pointed out last week, earnings were just in line with expectations, so the pop may have been overdone. Investors agreed with him today, pushing shares down to near pre-earnings prices.
Now what: The pop and plunge may leave investors a little skittish, but cooler heads will prevail in the long run. For Foolish investors looking at the long-term prospects of Knoll, today I would point to the forward P/E ratio of 13 and rising estimates as reasons to be bullish on the stock. Shares may settle here for now, but I think the recent quarterly report will be the start of a longer move higher.
Interested in more info on Knoll? 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.