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 Modine Manufacturing (NYSE:MOD) jumped 10% today after the company received an analyst upgrade.

So what: Robert W. Baird upgraded Modine from neutral to outperform and put a $13.80 price target on the stock. The analyst cited valuation for the upgrade; the stock trades at 20 times forward estimated.  

Now what: Analyst upgrades can often give shares a short-term pop, but in the long term they don't have any fundamental impact on the stock. If you're interested in buying Modine I'd wait for the bounce to fade in coming weeks. The P/E ratio is still high, and I'd like Modine to prove the ability to post growing earnings before jumping in.

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.