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 top-rated pump maker Franklin Electric
So what: Revenue increased 19% to $224.4 million, while adjusted earnings rose 55% to $0.82 a share. Analysts had forecasted $220.6 million and $0.75 a share, respectively, according to data compiled by Yahoo! Finance.
Now what: The beat, while impressive, wasn't so large as to explain a 16% rally. So what does explain it? Valuation, I suspect. Franklin trades for a fraction of analysts' long-term profit estimates -- estimates that, today at least, appear conservative. Do you agree? Would you buy shares of Franklin Electric at current prices? Please weigh in using the comments box below.
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