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 New York & Company were looking sharp, gaining as much as 10% two market days after reporting earnings, as Janney Montgomery Scott today reaffirmed its buy rating and upped its price target by 50% to $6.
So what: On a day when the broad markets were up as much as 1.5%, the vote of confidence seemed to be enough to push the women's fashion retailer 6.6% higher at closing. Today's swing also comes one session after the company delivered better-than-expected earnings, sending shares up 6% on Friday when New York & Companyposted a surprise profit. The retailer reported earning $0.03 a share when analysts expected a $0.07 loss.
Now what: The recent earnings and revenue beat could indicate that the retailer is pulling out of a funk that's kept it profitless in recent quarters. The economic recovery should also help continue to drive sales higher, though shares have already nearly doubled since last November. I would wait for profits to catch up before jumping in on New York & Company.
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The article Why New York & Company Shares Jumped originally appeared on Fool.com.
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