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 pharmaceutical ingredient distributor Aceto (NASDAQ:ACET) jumped 10% today after being upgraded by an analyst.
So what: Analysts at Sidoti upgraded the stock from neutral to a buy rating. This comes less than two weeks after the stock plunged following a terrible earnings report that had revenue down 17% and net income off 29.5%.
Now what: The fiscal third quarter was affected by timing of revenue recognition so it wasn't nearly as bad as it looked on the surface. It was important to take the long-term view of the stock's value, something that Sidoti apparently saw today. I wouldn't jump on the upgrade today, just because stocks often fall back after the initial pop, but keep an eye on performance long term because that's where Aceto's value will emerge and drive shares higher.