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 thermal-products maker Thermon Group (NYSE:THR) fell as much as 12%, after a disappointing earnings report.

So what: Revenue growth was flat for the quarter, at $67.4 million, though it would have increased by 4% without negative currency translation. EPS, meanwhile, improved from $0.19 cents to $0.26 cents, but was a penny short of estimates. Thermon's backlog also increased 29%, to $113 million, and gross margins improved.

Now what: The market's reaction to the report seems overdone, and may simply be a valuation-based pullback, as Thermon shares had appreciated almost 75% before today's fall. Even after today's drop, the stock still sports a pricy P/E at 30. With that kind of valuation, the company is going need to find a way to grow revenues by more than 4%.The backlog increase could indicate that better times are on the way.

Don't miss the next Thermon Group update.

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