Why Basic Energy Services 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 Basic Energy Services (NYS: BAS) rose 10% today after the company was upgraded by an analyst.
So what: When Goldman Sachs talks, investors listen, and that was the driver of shares today. Analysts at Goldman upgraded the stock all the way from sell to buy, and shares rocketed higher as a result.
Now what: We at The Motley Fool don't take analyst ratings too seriously, but I will pay attention to the company's earnings report, due out tonight. The market is expecting $363.3 million in revenue and $0.41 in earnings per share, and this will be the yardstick by which the company is measured in the near term. If you're looking at shares, I would wait to see how earnings look rather than buying on an analyst upgrade.
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The article Why Basic Energy Services Shares 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.Motley Fool newsletter services have recommended buying shares of Goldman Sachs Group. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.