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 auto-parts maker Gentex
So what: Gentex's first-quarter EPS managed to meet estimates, but a top-line miss -- $290.7 million versus the consensus of $294 million -- is reinforcing investor fears over slowing growth. In fact, the stock is hitting a new 52-week low on the news and is down nearly 30% year to date.
Now what: Don't expect the stock to turn anytime soon. Management expects second-quarter sales to grow a respectable 15%, implying a top line of about $280 million, but that was also below Wall Street's view of $287.4 million. Of course, with the stock now trading at a reasonable forward P/E of 14, long-term investors might want to take advantage of this short-term turbulence.
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