Why Brady Corp's Shares Popped 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 Brady Corp jumped as much as 16% today after the company released earnings.

So what: Fiscal third quarter revenue was up 2.3% from a year ago to $309.6 million, topping the $302.4 million consensus estimate. On the bottom line, earnings per share of $0.43 were five cents ahead of estimates.  

Now what: Growth appears to be picking up, particularly in the Identification Solutions business, where organic sales were up 4.8%. The growth was also enough for management to issue fourth quarter earnings guidance of $0.45 to $0.55 per share, which is on the high end of analysts' estimates of $0.46. With growth picking up and shares trading at 14 times estimates that will probably go up after this quarter, I think there's good long-term value here.

Will this stock be your next multi-bagger?
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

The article Why Brady Corp's Shares Popped Today originally appeared on Fool.com.

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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story