After this morning's trading, the Nasdaq is trading up 0.4%, the S&P 500 has increased 0.1% and the Dow is down 0.2%. Formerly run as a private organization, the NYSE became a public entity in 2005 following the acquisition of electronic trading exchange Archipelago.

The biggest movers traded on the NYSE so far are:

CompanyMarket CapPercentage Change
Msci (NYSE:MSCI)$4.36 billion-27.2%
Express (NYSE:EXPR)$1.3 billion-21.2%
MetroPCS Communications (NYSE:PCS)$4.19 billion+20.7%
Core Laboratories (NYSE:CLB)$5.71 billion-14.5%
Chipotle Mexica (NYSE:CMG)$10.02 billion-5.7%
Lumber Liquidators Holdings (NYSE:LL)$1.38 billion-5.2%
Acuity Brands (NYSE:AYI)$2.67 billion-4.3%
Forex Broker Summary: UFXMarkets

Taking a 27.2% hit, Msci (NYSE:MSCI) is currently trading at $26.09 per share. The company's volume for the day so far is 5.7 million 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. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. MSCI's D/E ratio is 62%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.

Express (NYSE:EXPR) is at a share price of $11.83 after a sharp decline of 21.2%. The company's volume for the day so far is 6.8 million shares, 5.4 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). Relative to the industry P/E ratio of 23.93, EXPR's 8.7 is low. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Profit With The Power Of Price-To-Earnings

MetroPCS Communications (NYSE:PCS) is currently at $13.91 per share after a dramatic increase of 20.7%. So far today, 14.3 million shares of the company's stock have changed hands. This is more trading activity than there was yesterday. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. 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 PCS is 1.34. 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.

Core Laboratories (NYSE:CLB) is currently trading at $103.17 per share, after a steep drop of 14.5%. At 1.5 million shares, the company's volume so far today is 4.9 times the average daily volume. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for CLB is 22.14, indicating that the stock is trading for more than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Using The Price-To-Book Ratio To Evaluate Companies

Currently trading at $298.24 per share, Chipotle Mexica (NYSE:CMG) has fallen 5.7%. The company is currently trading a volume of 1.5 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. 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 value by its total revenues or alternatively, a company's price per share by its revenue per share. The P/S ratio for CMG is 4.78, which is relatively high. This could be a good sign if the share price increases. 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.

At $48.56, Lumber Liquidators Holdings (NYSE:LL) has slipped 5.2%. At 1.6 million shares, the company's volume so far today is 2.6 times its current three-month average. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. LL has a low debt ratio of 32.1%. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

Acuity Brands (NYSE:AYI) is currently trading at a share price of $60.37, a 4.3% decline. The company's volume for the day so far is 680,999 shares. Yesterday, volume was only 519,534 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalization ratio for AYI is 30.1%. 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.

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

Filed Under: ,
Tickers in this Article: MSCI, EXPR, PCS, CLB, CMG, LL, AYI

comments powered by Disqus

Trading Center