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 Sam Adams maker Boston Beer jumped 12% today after the company reported earnings.
So what: Revenue was up 23% from a year ago to $181.3 million, and net income jumped 37% to $19.7 million, or $1.45 per share. Analysts were only expecting $175.4 million in revenue and $1.34 per share in earnings.
Now what: Boston Beer's stock is once again at a 52-week high as investors cheered the strong growth. This is by no means a cheap stock at 46 times earnings, but it's never been a cheap stock, because of its long-term growth. I think the stock still has room to run but I'd rather buy on a pullback than jump in at a peak today.
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The article Why Investors Cheered Boston Beer Today originally appeared on Fool.com.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Boston Beer. The Motley Fool owns shares of Boston Beer. 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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