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: FARO Technologies (Nasdaq: FARO) popped 10% in intraday trading today after broker/dealer Robert W. Baird upgraded the stock from "neutral" to "outperform."

So what: Baird also raised its target price on FARO to $48 from $40, citing first-quarter order strength. New order bookings in the first quarter grew 41% year over year, while revenue grew 24%. In the first-quarter earnings release, management expressed optimism regarding 2011, including expectations that good operating leverage will continue.

Now what: Wednesday after the close, FARO reported first-quarter EPS grew 54% year over year but was a penny shy of the $0.21 consensus estimate. On Thursday, the stock closed down 4% after falling close to 10% in intraday trading. Baird's upgrade appears to be turning investor focus from the earnings disappointment to new order growth and perhaps strong EPS growth and management confidence in the outlook.  

Interested in more info on FARO? Add it to My Watchlist.

Fool contributor Cindy Johnson owns no shares of any company named above. We Fools don't 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.