On a day-to-day basis, most stocks tend not to have dramatic price movements. However, news and information that is fundamental to an industry, sector or stock's business does get released periodically. This type of news has the potential to move a stock by several percentage points, in either direction. But even if a stock has already moved, it might still warrant consideration as an investment. After good news, a stock may increase in value, but this momentum can often continue on for more upside. Likewise, bad news often knocks down a stock's price more than is warranted, causing it to sell at bargain levels until the price moves back up. (For related reading, see How To Use Volume To Improve Your Trading.)
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This week we take a look at the biggest movers worth over $300 million in market cap.
November 14 to 18th's Largest Movers
|iShares FTSE NAREIT (NYSE:FIO)||+25.16%|
|Green Mountain Coffee Roasters (NYSE:GMCR)||+26.41%|
|Jaguar Mining Inc.
ACCO Brands Corporation (Market Cap = $497 Million)
This company designs, develops, manufactures and markets computer-related office supplies in North America, Europe and Australia. Trading at a 9.54 P/E, this company does not seem overly expensive in comparison to the industry average of 9.74. The P/E ratio is one of the most common metrics used in valuing stocks, taking the company's current share price and dividing it by its per-share earnings. A high P/E in comparison to its peers can indicate that it is overvalued, and vice versa. The ratio can also be referred to as the price multiple or earnings multiple.
Endocyte, Inc. (Market Cap = $324 Million)
ECYT engages in developing targeted therapies for the treatment of cancer and inflammatory disease. Lacking P/E and PEG due to negative earnings this past year, this company seems to have trouble making a profit. The PEG ratio takes the price-to-earnings ratio and divides it by the expected annual EPS growth. Typically a ratio close to 1 means the company is fairly valued to its growth potential, with anything less than 1 reflecting undervaluation, and anything above 1 indicating the stock is overvalued.
iShares FTSE NAREIT (Market Cap = $3.3 Billion)
This company engages in the development, marketing, and sale of storage memory platforms for data decentralization in the United States. Trading at a high P/E of 230, this company seems to be on the risky side. In addition, its 4.8 PEG ratio indicates the company may be overvalued.
Green Mountain Coffee Roasters (Market Cap = $7.8 Billion)
GMCR is in the specialty coffee and coffeemaker business. Trading at a high 38.51 P/E, this company seems to be a fast grower, even with the 38% slide during the past month. Investors are expecting high growth from this coffeemaker, which competes with the likes of Starbucks (NYSE:SBUX). (For more on the P/E, see How To Use The P/E Ratio And PEG To Tell A Stock's Future.)
Jaguar Mining Inc. (Market Cap = $649 Million)
Jaguar engages in the production of gold in Brazil. Trading at a 13.5 forward P/E multiple, this company seems to be trading fairly, in comparison to the industry average of 18. In contrast to the regular price-to-earnings ratio, the future price-to-earnings ratio takes the market price and divides it by the expected earnings per share rather than the current earnings per share. It is a metric used to value a company based on its estimated future earnings.
The Bottom Line
No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times adjust your strategy.
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