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 car dealer Penske Automotive (NYSE:PAG) fell 10% today after releasing earnings.

So what: Third quarter earnings per share of $0.60, after one-time items, was actually better than expected, and revenue beat, as well, but investors are worried about future profitability. Gross margin was only 2.6%, below estimates of 2.8%, and the company is selling cheaper cars because consumers have less money.

Now what: The lower sale prices are concerning, but the steady improvement in the economy makes me think that the company will have better days ahead. Unemployment is falling and, eventually, wages will rise, which will allow for higher purchase prices. The stock trades at 11 time earnings, so I think there's plenty of value, given the revenue growth of 17% in the quarter.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.