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: Early this morning, R.W. Baird & Co. upgraded shares of Vera Bradley Designs
So what: So far, no one seems to know much more about the upgrade than the simple fact that it happened. Baird is apparently telling investors to expect a $46 stock price within the year -- about a 14% profit on top of today's post-pop price.
Now what: Don't believe it. Not that Baird's a bad analyst. To the contrary, our CAPS stats show it to be one of the better analysts out there. But at a share price nearly 38 times as large as its earnings, Vera's looking awfully pricey today -- even with the 24% long-term growth analysts have it pegged for. If I were a shareowner, I'd be looking to cash out today's gains and look for something selling at a non-nosebleed price. Maybe even something that pays a bit of a dividend.
But that's just me. If you think Vera's as styling as Baird apparently does, do yourself a favor. Add the stock to your watchlist and keep close tabs on its performance.
Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.