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 electronic component maker Cooper Industries (NYSE: CBE) jumped 26% today after announcing it was being acquired by Eaton (NYSE: ETN).

So what: In the announced deal, Cooper shareholders will get $39.15 per share in cash and 0.77479 share of Eaton stock, worth about $72 per share in total. The buyout is expected to add $0.65 per share in earnings to Eaton in 2014 and $0.75 per share in 2015.

Now what: For shareholders in Cooper, this could be a good time to cash out, reducing the risk of a deal not going through. For Eaton, the acquisition comes at a high cost and makes the stock look more expensive than the current 10.6 trailing P/E ratio. It is now less of a value play than it used to be.

Deal-making in the space by Eaton and ABB (NYSE: ABB) has also driven up the price of competitor Hubbell (NYSE: HUB-B) today as the market speculates that its business may be undervalued as well. In my view, this is a nice time to cash out on high stock prices because acquisitions of this size don't have a long history of adding shareholder value.

Interested in more info on Cooper Industries? Add it to your watchlist by clicking here.