Free Annual Reports
Companhia de Saneamento Basico and More Big Movers on the NYSE on September 17, 2012
The market is down this morning. The Nasdaq is trading down 0.2%; the S&P 500 has slipped 0.2%; and the Dow has decreased 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:
Broker Summary: TD Ameritrade Thinkorswim
Inergy (NYSE:NRGY) is currently trading at $18.38 per share, after a steep drop of 16.2%. So far today, the company's volume is 253,844 shares. 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 price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. The P/B ratio for NRGY is 2.23, 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. 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
Waste Connections (NYSE:WCN) has risen 8.7% to hit a current price of $32.26 per share. At 1.2 million shares, the company's volume so far today is 2.4 times the current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Valuation ratios like 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 are useful in determining how attractive a potential or existing investment is. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. WCN has a P/E ratio of 22.0, high compared to the industry average of 8.99. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Profit With The Power Of Price-To-Earnings
After a decline of 8.2%, Vulcan Materials (NYSE:VMC) has hit a share price of $45.14. The company is trading at a volume of 537,506 shares. This is a sign that there will be less trading activity than there was yesterday. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. The dividend yield is calculated by dividing a company's dividends per share by its stock price. VMC has a dividend yield of 0.1%, which is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Guide To Stock-Picking Strategies: Income Investing
Cliffs Natural Resources (NYSE:CLF) is trading at $42.64 per share, down 6.4%. At 6.7 million shares, the company's volume so far today is in keeping with its current daily average. Volume is used to evaluate how meaningful the price movement of a stock is. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for CLF is 1.05, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
This morning, the company is trading a volume of 808,176 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. Valuation ratios allow the investor to make a quick determination as to a company's investment value. 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. The debt ratio for RKT is 66.5%, which is relatively high. 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.
American (NYSE:AVD) is up 5.5% to reach a current price of $32.71 per share. The company's volume is currently 201,534 shares for the day, 0.8 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. A company's value as an investment is more easily 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 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. AVD has a low capitalization ratio of 16.6%. Low leverage is a significant balance sheet strength, a sign of a less risky investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Companhia de Saneamento Basico (NYSE:SBS) is down 4.5% to reach $74.68 per share. The company's volume for the day so far is 327,545 shares. This is about the same trading activity as there was yesterday. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. SBS' stock is trading for more than its book value with a P/B ratio of 1.56. 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. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio
The Bottom Line The nature of the market is such that stocks will have good days and bad days. 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 NYSE so far are:
| Company | Market Cap | Percentage Change |
| Inergy (NYSE:NRGY) | $2.89 billion | -16.2% |
| Waste Connections (NYSE:WCN) | $3.66 billion | +8.7% |
| Vulcan Materials (NYSE:VMC) | $6.36 billion | -8.2% |
| Cliffs Natural Resources (NYSE:CLF) | $6.49 billion | -6.4% |
| American (NYSE:AVD) | $865.9 million | +5.5% |
| Companhia de Saneamento Basico (NYSE:SBS) | $8.91 billion | -4.5% |
Inergy (NYSE:NRGY) is currently trading at $18.38 per share, after a steep drop of 16.2%. So far today, the company's volume is 253,844 shares. 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 price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. The P/B ratio for NRGY is 2.23, 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. 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
Waste Connections (NYSE:WCN) has risen 8.7% to hit a current price of $32.26 per share. At 1.2 million shares, the company's volume so far today is 2.4 times the current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Valuation ratios like 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 are useful in determining how attractive a potential or existing investment is. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. WCN has a P/E ratio of 22.0, high compared to the industry average of 8.99. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Profit With The Power Of Price-To-Earnings
After a decline of 8.2%, Vulcan Materials (NYSE:VMC) has hit a share price of $45.14. The company is trading at a volume of 537,506 shares. This is a sign that there will be less trading activity than there was yesterday. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. The dividend yield is calculated by dividing a company's dividends per share by its stock price. VMC has a dividend yield of 0.1%, which is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Guide To Stock-Picking Strategies: Income Investing
Cliffs Natural Resources (NYSE:CLF) is trading at $42.64 per share, down 6.4%. At 6.7 million shares, the company's volume so far today is in keeping with its current daily average. Volume is used to evaluate how meaningful the price movement of a stock is. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for CLF is 1.05, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
This morning, the company is trading a volume of 808,176 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. Valuation ratios allow the investor to make a quick determination as to a company's investment value. 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. The debt ratio for RKT is 66.5%, which is relatively high. 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.
American (NYSE:AVD) is up 5.5% to reach a current price of $32.71 per share. The company's volume is currently 201,534 shares for the day, 0.8 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. A company's value as an investment is more easily 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 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. AVD has a low capitalization ratio of 16.6%. Low leverage is a significant balance sheet strength, a sign of a less risky investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Companhia de Saneamento Basico (NYSE:SBS) is down 4.5% to reach $74.68 per share. The company's volume for the day so far is 327,545 shares. This is about the same trading activity as there was yesterday. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. SBS' stock is trading for more than its book value with a P/B ratio of 1.56. 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. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio
The Bottom Line The nature of the market is such that stocks will have good days and bad days. 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
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
