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 American Science & Engineering (NAS: ASEI) shot as much as 12% higher today after the company landed a big contract.
So what: According to reports, the TSA awarded the company a $245 million contract for advanced imaging technology. The company hasn't made an official announcement, but the contract has been published, and I would expect something official before the open of trading tomorrow.
Now what: This is a huge deal for the company, because this one contract is larger than its revenue for all of last year. I think this is very bullish for the company, but it needs to turn this contract into bottom-line results for it to be a long-lasting pop. Shares trade at 30 times forward estimates, so there is already a lot of optimism priced into the stock.
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The article Why American Science & Engineering's Shares Jumped originally appeared on Fool.com.
Fool contributor Travis Hoium has no 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 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 a disclosure policy.