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 supply chain management company Echo Global Logistics, (NASDAQ:ECHO) jumped as much as 13% in early trading after the company reported earnings.
So what: First-quarter gross revenue jumped 21.4% to $247.7 million and operating income jumped 30% sequentially to $5.4 million. Non-GAAP net income was $3.3 million, or $0.14 per share, which was $0.03 ahead of estimates.
Now what: Acquisitions helped drive growth in the quarter and higher margins are helping improve profitability. But at 23 times forward estimates, Echo Global isn't a cheap stock for the growth it's getting organically. I'll sit out today's move and look for more value in a mature market like logistics.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.