Dresser-Rand Shares Plunged: What You Need to Know

By Anders Bylund – Updated Apr 6, 2017 at 8:03PM EST

Is this meaningful? Or just another movement?

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 petrochemical processing equipment maker Dresser-Rand Group (NYSE: DRC) spun down to an 18.1% mid-day drop on heavy volume, then jumped about halfway back to a 9% swoon.

So what: Faced with "a number of challenges" in the second quarter, Dresser-Rand reported earnings and sales below Street expectations. On the other hand, management insists on hitting earlier full-year targets anyhow as the order backlog keeps building up and some trading sanctions with a Venezuelan customer might not be appropriate after all.

Now what: Fellow Fool Rex Moore recently fingered Dresser-Rand as one of the best values available in the oil industry and related markets, right next to longtime Fool recommendation National Oilwell Varco (NYSE: NOV) and industry titan Schlumberger (NYSE: SLB). These type of lumpy results might make you doubt that conclusion, but then it seems like we're talking about a short-term problem with a clear road back to solid profits. The stock has the support of 97% of more than 250 CAPS Fools, giving it a five-star rating out of five. Can all those fellow investors be wrong about Dresser-Rand? I doubt it.

Interested in more info on creative oil investments? Get on the ball:

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Anders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.

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