Why West Corporation 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 communication service provider West Corporation jumped as much as 10% today after the company got positive ratings from analysts.

So what: Analysts at both Citigroup and William Blair both initiated coverage on the stock today. Citigroup gave the stock a buy rating and a $25 price target while William Blair said the stock would outperform the market.

Now what: Stocks often jump after positive ratings come out or analysts give upgrades, but the market doesn't usually remember for long. I wouldn't look at this as a buy sign, and would instead focus on the decline in operating income and net income reported last week. Those numbers suggest being cautious, and that's why I'll pass on the stock today.

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The article Why West Corporation Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of Citigroup. 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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