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Nasdaq Stocks, Including Dollar Tree, Making Big Moves on October 5, 2012
This morning has been good for the market, with the Nasdaq climbing 0.2%, the S&P 500 up 0.5% and the Dow increasing 0.5%. The Nasdaq Composite Index is a capitalization-weighted index, with each company weighted in proportion to its market value.
The biggest movers traded on the NASDAQ so far are:
Software Summary: Finviz.com Stock Screener
Taking a 10.6% hit, First Solar (Nasdaq:FSLR) is currently trading at $20.17 per share. This morning, the company's volume is 6.9 million shares. This is one times its 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. 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 FSLR is 0.52 because the stock is trading for less 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
Falling 8%, Liquidity Services (Nasdaq:LQDT) is currently at a share price of $43.03. The company's volume for the day so far is 656,108 shares. Volume is an important indicator because it indicates how significant a price shift is. Valuation ratios allow the investor to make a quick determination as to a company's investment value. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. Compared to the industry average of 25.38, LQDT's P/E ratio of 33.4 is quite high. This could mean that the market is expecting big things over the next few months or years. 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: Investment Valuation Ratios: Price/Earnings Ratio
Infinity Pharmaceuticals (Nasdaq:INFI) has moved up 6.1% and is currently trading at $27.18 per share. The company's volume for the day so far is 157,229 shares, consistent with its average over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for INFI is a high 3.99. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Medicines (Nasdaq:MDCO) is down 5.2% to reach $25.25 per share. So far today, 848,547 shares of the company's stock have changed hands. This is more trading activity than there was yesterday. Volume indicates the level of interest that investors have in a company at its current price. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. MDCO's debt ratio of 40.7% is on the low side. 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.
Onyx Pharmaceuticals (Nasdaq:ONXX) is up 4.5% to reach a current price of $89.77 per share. At 780,314 shares, the company's volume so far today is 0.7 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. 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. The debt-equity (D/E) ratio is a leverage ratio. The debt-equity ratio of 24% is relatively low. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Tractor Supply (Nasdaq:TSCO) has risen 4% to hit a current price of $103.34 per share. So far today, the company's volume is 409,854 shares. A stock's volume conveys how excited investors are about it. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. Dividend yield measures the income that a stock will generate for an investor. TSCO has a low dividend yield of 0.8%. A company with a low dividend yield may be a safer investment in the long run. Just as with the yield on a bond or certificate of deposit, the higher the dividend yield, the higher the return to the investor. SEE: Guide To Stock-Picking Strategies: Income Investing
After an increase of 3.4%, Dollar Tree (Nasdaq:DLTR) has reached a current price of $48.46. At 1.2 million shares, the company's volume so far today is in keeping with the average volume over the past three months. When a stock price moves up or down, watching the volume is a good way of identifying how significant that 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. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. DLTR has a PEG ratio of 1.23, 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.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
The biggest movers traded on the NASDAQ so far are:
| Company | Market Cap | Percentage Change |
| First Solar (Nasdaq:FSLR) | $1.96 billion | -10.6% |
| Liquidity Services (Nasdaq:LQDT) | $1.45 billion | -8% |
| Infinity Pharmaceuticals (Nasdaq:INFI) | $1.01 billion | +6.1% |
| Medicines (Nasdaq:MDCO) | $1.43 billion | -5.2% |
| Onyx Pharmaceuticals (Nasdaq:ONXX) | $5.59 billion | +4.5% |
| Tractor Supply (Nasdaq:TSCO) | $7.05 billion | +4% |
| Dollar Tree (Nasdaq:DLTR) | $10.79 billion | +3.4% |
Taking a 10.6% hit, First Solar (Nasdaq:FSLR) is currently trading at $20.17 per share. This morning, the company's volume is 6.9 million shares. This is one times its 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. 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 FSLR is 0.52 because the stock is trading for less 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
Falling 8%, Liquidity Services (Nasdaq:LQDT) is currently at a share price of $43.03. The company's volume for the day so far is 656,108 shares. Volume is an important indicator because it indicates how significant a price shift is. Valuation ratios allow the investor to make a quick determination as to a company's investment value. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. Compared to the industry average of 25.38, LQDT's P/E ratio of 33.4 is quite high. This could mean that the market is expecting big things over the next few months or years. 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: Investment Valuation Ratios: Price/Earnings Ratio
Infinity Pharmaceuticals (Nasdaq:INFI) has moved up 6.1% and is currently trading at $27.18 per share. The company's volume for the day so far is 157,229 shares, consistent with its average over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for INFI is a high 3.99. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Onyx Pharmaceuticals (Nasdaq:ONXX) is up 4.5% to reach a current price of $89.77 per share. At 780,314 shares, the company's volume so far today is 0.7 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. 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. The debt-equity (D/E) ratio is a leverage ratio. The debt-equity ratio of 24% is relatively low. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Tractor Supply (Nasdaq:TSCO) has risen 4% to hit a current price of $103.34 per share. So far today, the company's volume is 409,854 shares. A stock's volume conveys how excited investors are about it. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. Dividend yield measures the income that a stock will generate for an investor. TSCO has a low dividend yield of 0.8%. A company with a low dividend yield may be a safer investment in the long run. Just as with the yield on a bond or certificate of deposit, the higher the dividend yield, the higher the return to the investor. SEE: Guide To Stock-Picking Strategies: Income Investing
After an increase of 3.4%, Dollar Tree (Nasdaq:DLTR) has reached a current price of $48.46. At 1.2 million shares, the company's volume so far today is in keeping with the average volume over the past three months. When a stock price moves up or down, watching the volume is a good way of identifying how significant that 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. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. DLTR has a PEG ratio of 1.23, 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.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
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