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 industrial equipment maker Edwards Group (NAS: EVAC) rose as much as 11% today after coverage was initiated by an analyst.
So what: Goldman Sachs initiated coverage on the stock with a buy rating and a $13 price target. The price target indicates a 67% upside from the current share price, a big jump for the stock.
Now what: We don't take analyst ratings too seriously, and the market has already cut off half of today's gains. The company's 11.3 trailing P/E ratio seems attractive, but revenue fell 10.3% last quarter and second-quarter outlook is for only 8-9 pence per share in earnings. I wouldn't buy on today's announcement alone, and I would like to see revenue heading in a positive direction before I would throw any money into Edwards Group.
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The article Why Shares of Edwards Group Jumped originally appeared on Fool.com.
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.
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