Why Willbros Group'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 energy service provider Wlllbros Group gained as much as 25% today after being upgraded by an analyst.
So what: Analysts at Johnson Rice upgraded shares after a strong earnings report and the stock went crazy. The fiscal fourth quarter numbers were good earlier this week with sales jumping a whopping 58% to $573.1 million, way ahead of the consensus estimate of $485.7 million, and $0.09 in earnings per share topping estimates of $0.06.
Now what: The earnings report barely moved the stock yesterday, but an analyst sent volume to nearly four times its normal level today. I think the quarter was surprisingly good and shares look attractively priced going forward. I'm leery of buying on an analyst-induced jump, since they don't often last, but if shares pull back next week I think investors can ride them higher over the next year.
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The article Why Willbros Group's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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