Clarcor Shares Got Crushed: What You Need to Know

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: Thursday was a good day for stocks -- unless the stock was named Clarcor (NYS: CLC) . As everyone else and his brother gained 2% in their portfolios today, Clarcor shareholders were forced to grin and bear a 3.5% loss.

So what: Ah, well. It could have been worse. At one point today, shares of this filter manufacturer were down 10%, hurt by an earnings release last night that, although not exactly bad (earnings were up 13%), nonetheless failed to meet Wall Street estimates.

Now what: Perversely, this may turn out to be good news for investors with a bit more patience than Clarcor's shareholders showed today. Consider: Management may have missed estimates in Q3, but it held firm on full-year guidance of $2.25 to $2.40 per share. So basically, management is telling us that whatever earnings the company failed to make in Q3, it expects to make up in Q4 -- the quarter we're in now.

And the bad news? Even if Clarcor manages to make its comeback and hit the tippet-top of its guidance, its shares will end the year costing 18.4 times earnings -- which to my Foolish eye, is too high for a 12% grower like Clarcor.

Want to find out more about Clarcor?Add it to your watchlist.

At the time thisarticle was published Fool contributorRich Smithdoes not own (or short) shares of any company named above.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.