Why Meritor's Shares Popped
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 transportation supplier Meritor (NYS: MTOR) rose as much as 10% today after the company was upgraded by an analyst.
So what: Analysts at Barclays Capital upgraded the stock from equal weight to overweight in a report today. The stock is not highly followed, and most analysts currently have a neutral rating of the stock.
Now what: Long-term investors shouldn't see this upgrade as a reason to buy shares today. The company reported a 13% decline in revenue last quarter, and we won't be able to assess how the third quarter was until Nov. 14, when the company releases earnings. Until then, I would take a wait-and-see approach to see if revenue turns around and profitability continues to improve.
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The article Why Meritor's Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoiumhas no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. 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.
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