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Biggest Nasdaq Movers: LPL Investment Holdings Inc. and More
The Nasdaq is up 0.4%, the S&P 500 has been relatively flat and the Dow has moved little so far today. Most stocks on the Nasdaq Composite Index are technology and Internet-related, but there are financial, consumer, bio-tech and industrial companies as well.
The biggest movers traded on the NASDAQ so far are:
Forex Broker Summary: Forex Capital Markets (FXCM)
Cirrus Logic (Nasdaq:CRUS) is trading at $36.81 per share, a significant rise of 23.4%. The company's volume is currently 7.6 million shares. This is greater than yesterday's volume of 6.7 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. CRUS' P/E ratio of 23.1 is above the industry average of 5.2. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Understanding The P/E Ratio
The company's volume is currently 1.8 million shares for the day, 3.7 times the average daily volume. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. IPGP's capitalization ratio is 2.2%, which is relatively low. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Medidata Solutions (Nasdaq:MDSO) has soared 15.5% to reach a current price of $36.00 per share. The company is currently trading a volume of 462,466 shares. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). PEG ratio for MDSO is 1.21. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Shares of Tower Group (Nasdaq:TWGP) are currently trading at $18.59, a steep decline of 14.4%. So far today, the company's volume is 444,949 shares, 2.7 times its current three-month average. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. TWGP's P/B ratio of 0.69 indicates that its share price is lower than its book value. This is due to one of two possibilities: that the stock is being unfairly or incorrectly undervalued by investors because of some transitory circumstance and represents an attractive buying opportunity at a bargain price or that the market's low opinion and valuation of the company are correct, at least over the foreseeable future. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Using The Price-To-Book Ratio To Evaluate Companies
After a precipitous drop of 12.7%, LPL Investment Holdings (Nasdaq:LPLA) is now trading at a share price of $27.98. So far today, the company's volume is 1.3 million shares. Yesterday's volume was only 223,554 shares. A stock's volume conveys how excited investors are about it. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for LPLA is a high 1.19. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
Taking a 11.8% hit, Advent Software (Nasdaq:ADVS) is currently trading at $23.91 per share. At 544,415 shares, the company's volume so far today is 4.8 times the current daily average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for ADVS is a low 49.9%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
CommVault Systems (Nasdaq:CVLT) is trading at $50.42 per share, a significant rise of 11.1%. This morning, the company is trading a volume of 1.1 million shares. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. CVLT is in line with the industry average with a P/E ratio of 69.2. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: The P/E Ratio: A Good Market-Timing Indicator
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
The biggest movers traded on the NASDAQ so far are:
| Company | Market Cap | Percentage Change |
| Cirrus Logic, Inc. (Nasdaq:CRUS) | $1.92 billion | +23.4% |
| Medidata Solutions Inc (Nasdaq:MDSO) | $786.3 million | +15.5% |
| Tower Group Inc (Nasdaq:TWGP) | $856.2 million | -14.4% |
| LPL Investment Holdings Inc. (Nasdaq:LPLA) | $3.54 billion | -12.7% |
| Advent Software, Inc. (Nasdaq:ADVS) | $1.37 billion | -11.8% |
| CommVault Systems, Inc. (Nasdaq:CVLT) | $2.04 billion | +11.1% |
Cirrus Logic (Nasdaq:CRUS) is trading at $36.81 per share, a significant rise of 23.4%. The company's volume is currently 7.6 million shares. This is greater than yesterday's volume of 6.7 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. CRUS' P/E ratio of 23.1 is above the industry average of 5.2. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Understanding The P/E Ratio
The company's volume is currently 1.8 million shares for the day, 3.7 times the average daily volume. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. IPGP's capitalization ratio is 2.2%, which is relatively low. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Medidata Solutions (Nasdaq:MDSO) has soared 15.5% to reach a current price of $36.00 per share. The company is currently trading a volume of 462,466 shares. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). PEG ratio for MDSO is 1.21. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Shares of Tower Group (Nasdaq:TWGP) are currently trading at $18.59, a steep decline of 14.4%. So far today, the company's volume is 444,949 shares, 2.7 times its current three-month average. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. TWGP's P/B ratio of 0.69 indicates that its share price is lower than its book value. This is due to one of two possibilities: that the stock is being unfairly or incorrectly undervalued by investors because of some transitory circumstance and represents an attractive buying opportunity at a bargain price or that the market's low opinion and valuation of the company are correct, at least over the foreseeable future. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Using The Price-To-Book Ratio To Evaluate Companies
After a precipitous drop of 12.7%, LPL Investment Holdings (Nasdaq:LPLA) is now trading at a share price of $27.98. So far today, the company's volume is 1.3 million shares. Yesterday's volume was only 223,554 shares. A stock's volume conveys how excited investors are about it. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for LPLA is a high 1.19. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
Taking a 11.8% hit, Advent Software (Nasdaq:ADVS) is currently trading at $23.91 per share. At 544,415 shares, the company's volume so far today is 4.8 times the current daily average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for ADVS is a low 49.9%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
CommVault Systems (Nasdaq:CVLT) is trading at $50.42 per share, a significant rise of 11.1%. This morning, the company is trading a volume of 1.1 million shares. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. CVLT is in line with the industry average with a P/E ratio of 69.2. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: The P/E Ratio: A Good Market-Timing Indicator
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
by
Investopedia Staff
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