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 animal health care company VCA Antech
So what: Revenue grew 7.4% to $385.1 million and adjusted earnings per share were $0.37 in the third quarter, both in line with expectations. Analysts at Stephens & Co. liked what they saw and upgraded the company to over weight from equal weight this morning.
Now what: Same store revenue growth was just 1%, but the company has grown by acquiring a number of animal hospitals in the quarter. The stock is trading at 15 times earnings, and considering the company's consistent growth in a rough economy and potential gains when the economy improves, I think investors are starting to see some light ahead. I'm not a buyer today, but I like the consistency the company has shown in recent quarters.
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