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 United Rentals, (NYSE:URI) plunged as much as 10% today after the CEO gave some cautious comments to investors.
So what: Speaking at the KeyBanc Capital Markets 2015 Industrial, Automotive and Transportation Conference CEO Michael Keeland caught traders' attention by saying that May demand was a "little softer" than he thought it would be. With that, investors sold off the stock.
Now what: It's amazing how much the market can overreact when executives give any sort of guidance and this is a perfect example of that. Keeland was talking about sales versus expectations for a single month this year and the company lost 10% of its value. In reality, virtually nothing about the company has changed in the last few hours except that investors are getting a lower price than they were yesterday. I don't see a reason to change your investment thesis today and if you were looking to buy shares this is a great time to do so.
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.