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 wallboard manufacturer USG
So what: The huge year-over-year improvement -- $5.7 million in operating profit on sales of $516.9 million versus an operating loss of $46.8 million on sales of $446.9 million in 2011 -- is forcing analysts to raise their valuation estimates yet again. In fact, the shares are busting through their 52-week high on the news and are up a whopping 150% over the past six months alone.
Now what: Expect the short-term sales momentum to continue. First-quarter results won't be out until mid-April, but management fully expects that March's results will also reflect higher wallboard prices and expanding gross margins. Given USG's still-hefty debt load and red-hot stock price, however, Fools should proceed with a whole lot of caution.
Interested in more info on USG? Add it to your watchlist.