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: OfficeMax (NYS: OMX) dropped 14% in intraday trading today after a high-profile broker/dealer downgraded the stock.
So what: Goldman Sachs cut its rating on the stock this morning to neutral from buy. That exacerbated a broad market sell-off that took the S&P Retail Index down more than 4% intraday.
Now what:Last week the stock popped as much as 22% in intraday trading after reporting much better-than-expected earnings. Looking at the bigger picture, the company has been grappling with weakened demand and increased competition from Staples (NAS: SPLS) and Office Depot (NYS: ODP) , among others. Though the analyst consensus calls for EPS growth of 27% over the coming year, also it calls for an annualized EPS decline of 28% over the next three to five years.
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At the time thisarticle was published Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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