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 YRC Worldwide fell as much as 17% today after an analyst downgraded the company.
So what: Credit Suisse initiated coverage on the company with an underperform rating and a $7 price target. What's unusual is the massive downside priced into the call, something analysts aren't usually inclined to do.
Now what: Earnings are due out Thursday, and that's when we'll know more about where the company is headed. The big questions surround how fast or slow a turnaround effort is going. Everyone expects a loss this quarter and even for the rest of 2013, but when does management expect a profit? That's what will determine whether the bulls or bears will win.
Interested in more info on YRC Worldwide? Add it to your watchlist by clicking here.
The article Why YRC Worldwide's Shares Dropped originally appeared on Fool.com.
Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.