Why NewMarket's Shares Jumped
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 NewMarket (NYS: NEU) jumped 17% today after the company crushed earnings estimates.
So what: Total revenue grew 10.8% to $562.7 million as the petroleum additives strengthened during the quarter. Net income rose 34% to $66.5 million, or $4.96 per share, both easily topping estimates.
Now what: The growth has really shocked investors, and I don't think it's been priced into the stock yet. Shares are trading at 15 times trailing earnings, a good value for a company that increased earnings 34% in the quarter. I like the long-term value here and think shares can continue to rise after this great earnings report.
Interested in more info on NewMarket? Add it to your watchlist byclicking here.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.