Petroleum Development Shares Popped: 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: Shares of Petroleum Development (NAS: PETD) jumped 10% today as the price of oil rose.
So what: Small oil producers are on the rise today as the price of oil climbs, partly due to a broader stock market recovery. The panic over Italy's debt woes bringing down Europe drove everything oil-related down yesterday; today is really a recovery from yesterday's low.
Now what: There isn't any big news about earnings driving shares today, but when oil moves big shares of Petroleum Development are sure to follow. Higher oil prices should drive earnings, and with the global economy starting to look a bit stronger that movement will probably continue. I like oil producers and their leverage on oil prices, but I wouldn't buy today just on one volatile move in price.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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.