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Biggest NYSE Movers: China Petroleum & Chemical Corp. (ADR) and More
The market is on the rise so far this morning. The Nasdaq is trading up 1%; the S&P 500 is up 0.5%; and the Dow has increased 0.6%. Today, more than half of all NYSE trades are conducted electronically, although floor traders are still used to set pricing and deal in high volume institutional trading.
The biggest movers traded on the NYSE so far are:
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HCA (NYSE:HCA) is down 7.7% to reach $24.55 per share. At 6.4 million shares, the company's volume so far today is 3.1 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. HCA has a high debt ratio of 131.7%. This means that the company's cash flow is significantly impacted by paying off principal and interest and that any negative change in performance or rise in interest rates could result in default. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 6.5%, Rackspace Hosting (NYSE:RAX) is trading at $48.20 per share. So far today, 1.2 million shares of the company's stock have changed hands. The trading volume for a stock indicates the level of investor interest. 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. The debt-equity (D/E) ratio is a leverage ratio. RAX has a debt-equity ratio of 22%, which is on the low side. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Currently trading at $26.54 per share, Huaneng Power International, Inc (NYSE:HNP) has fallen 6.3%. With 83,932 shares changing hands so far today, the company's volume is 1.1 times the current three-month average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. 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. HNP has a high capitalization ratio of 67.3%. A high capitalization ratio is not necessarily bad since higher financial leverage can increase the return on a shareholder's investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
After an increase of 3.3%, China Petroleum & Chemical Corp (NYSE:SNP) has reached a current price of $94.45. The company's volume for the day so far is 50,123 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. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for SNP is 1.09, indicating that the stock is trading for more than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Linkedin (NYSE:LNKD) is up 3.3% to reach a current price of $112.06 per share. So far today, the company's volume is 2.2 million shares, in line with the current daily average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). Compared to the industry average of 45.86, LNKD's P/E ratio of 986.5 is quite high. This could mean that the market is expecting big things over the next few months or years. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Polo Ralph Lauren (NYSE:RL) has increased to a share price of $150.38, a 3.2% rise. The company's volume for the day so far is 580,226 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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). RL has a PEG ratio of 1.86, which is consistent with the industry average. 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.
After rising 2.7%, Salesforce.com (NYSE:CRM) is currently trading at a share price of $131.79. So far today, the company's volume is 1.1 million shares, 0.4 times the average volume over the last three months. Volume is an important indicator because it indicates how significant a price shift is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for CRM is a high 8.68. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
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 to adjust your strategy. 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 NYSE so far are:
| Company | Market Cap | Percentage Change |
| HCA Holdings (NYSE:HCA) | $11.67 billion | -7.7% |
| Rackspace Hosting, Inc. (NYSE:RAX) | $6.12 billion | +6.5% |
| Huaneng Power International, Inc. (ADR) (NYSE:HNP) | $9.95 billion | -6.3% |
| China Petroleum & Chemical Corp. (ADR) (NYSE:SNP) | $79.28 billion | +3.3% |
| Linkedin Corporation (NYSE:LNKD) | $11.21 billion | +3.3% |
| Polo Ralph Lauren (NYSE:RL) | $8.82 billion | +3.2% |
| Salesforce.com (NYSE:CRM) | $17.7 billion | +2.7% |
HCA (NYSE:HCA) is down 7.7% to reach $24.55 per share. At 6.4 million shares, the company's volume so far today is 3.1 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. HCA has a high debt ratio of 131.7%. This means that the company's cash flow is significantly impacted by paying off principal and interest and that any negative change in performance or rise in interest rates could result in default. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 6.5%, Rackspace Hosting (NYSE:RAX) is trading at $48.20 per share. So far today, 1.2 million shares of the company's stock have changed hands. The trading volume for a stock indicates the level of investor interest. 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. The debt-equity (D/E) ratio is a leverage ratio. RAX has a debt-equity ratio of 22%, which is on the low side. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Currently trading at $26.54 per share, Huaneng Power International, Inc (NYSE:HNP) has fallen 6.3%. With 83,932 shares changing hands so far today, the company's volume is 1.1 times the current three-month average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. 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. HNP has a high capitalization ratio of 67.3%. A high capitalization ratio is not necessarily bad since higher financial leverage can increase the return on a shareholder's investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
After an increase of 3.3%, China Petroleum & Chemical Corp (NYSE:SNP) has reached a current price of $94.45. The company's volume for the day so far is 50,123 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. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for SNP is 1.09, indicating that the stock is trading for more than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Linkedin (NYSE:LNKD) is up 3.3% to reach a current price of $112.06 per share. So far today, the company's volume is 2.2 million shares, in line with the current daily average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). Compared to the industry average of 45.86, LNKD's P/E ratio of 986.5 is quite high. This could mean that the market is expecting big things over the next few months or years. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Polo Ralph Lauren (NYSE:RL) has increased to a share price of $150.38, a 3.2% rise. The company's volume for the day so far is 580,226 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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). RL has a PEG ratio of 1.86, which is consistent with the industry average. 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.
After rising 2.7%, Salesforce.com (NYSE:CRM) is currently trading at a share price of $131.79. So far today, the company's volume is 1.1 million shares, 0.4 times the average volume over the last three months. Volume is an important indicator because it indicates how significant a price shift is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for CRM is a high 8.68. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
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 to adjust your strategy. 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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