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 specialty contractor Dycom Industries
So what: Contract revenue rose 17% to $296.1 million, and net income jumped from $1.5 million to $9.6 million, or $0.28 per share. Profit easily passed the $0.21 per share analysts had expected, but shares dropped nonetheless.
Now what: The company has now outperformed estimates in the last four quarters by a wide margin, and the stock is starting to enter value territory. It is trading at 14 times fiscal 2013 earnings, and analysts are expecting 10% growth in 2013, so that's a reasonable multiple. I think this is a great time to enter the stock, and if the company can keep up its growth, it will outperform the market.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.