Why Shares of Aceto Corporation Jumped Today
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 pharmaceutical distributor Aceto Corporation jumped 21% today after reporting earnings.
So what: Net sales jumped 15.7%, to $129.3 million, and net income jumped 135.2% from a year ago to a record $11.3 million. On a per-share level, the company made $0.40, which was well above the $0.25 estimate from analysts.
Now what: Pharmaceuticals continue to be a strong business for the company, with sales up 19%. The company's growth, along with the fact that it crushed earnings estimates, shows some real value in its shares, as well. Estimates for 2014 are for $1.03 per share before this beat, so at 11.5 times estimates, that will likely rise. I think there's value to be had. I also think that shares will continue to rise as profits improve, making today a buying opportunity despite the pop.
Another big growth stock you need to see
This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!
The article Why Shares of Aceto Corporation Jumped Today 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
