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: Barely one month ago, ace investor UBS told investors to invest in Chicago Bridge & Iron shares
So what: Why should you care? Well for one thing, because UBS is a pretty good stock analyst, ranked in the top 10% of investors we track at The Motley Fool's CAPS service. For another, because UBS spends more time analyzing oil and gas stocks than any other single type of equity.
Now what: For third ... when UBS told investors to buy CB&I back in August, the shares cost $35 and change, and UBS believed they were heading to $41, representing a 17% profit-tunity. Today, these same shares can be had for the low, low price of just $27 -- a potential 50% gain.
That's UBS's opinion, at least. But, for what it's worth, I agree with 'em (on the direction the stock's going in, at least). With a P/E of less than 12, and long-term growth rates estimated at 15% per year, CB&I shares look undervalued to me. Maybe not by 50% ... but definitely undervalued.
If I were you, I'd give 'em a looksee before Mr. Market comes to his senses.
Want to learn more about Chicago Bridge & Iron? Add it to your Fool Watchlist. There's more to this stock than bridges or iron.