The Nasdaq has fallen 0.2%, the S&P 500 has increased 0.3% and the Dow has moved little this morning. The recent surge in popularity of technological stocks has launched the Nasdaq Composite Index into the spotlight, making it one of the premier indexes in the world.
The biggest movers traded on the NASDAQ so far are:
|Company||Market Cap||Percentage Change|
|Green Mountain Coffee Roasters (Nasdaq:GMCR)||$3.82 billion||+10.3%|
|Lululemon Athletica (Nasdaq:LULU)||$7.31 billion||+10%|
|Schnitzer Steel Industries (Nasdaq:SCHN)||$766.6 million||+8.8%|
|ABIOMED (Nasdaq:ABMD)||$920.6 million||-7.9%|
|Mellanox (Nasdaq:MLNX)||$4.99 billion||-6.8%|
|Ulta Salon, Cosmetics & Fragrance (Nasdaq:ULTA)||$6 billion||+6%|
|Francesca\'s (Nasdaq:FRAN)||$1.31 billion||-5.7%|
Forex Broker Summary: UFXMarkets
After a big jump of 10.3%, Green Mountain Coffee Roasters (Nasdaq:GMCR) is trading at $27.10 per share. At 5.6 million shares, the company's volume so far today is 1.6 times the average daily volume. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. Relative to the industry P/E ratio of 18.46, GMCR's 11.3 is low. A low P/E ratio may indicate that the market expects relatively slower earnings growth. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Profit With The Power Of Price-To-Earnings
Lululemon Athletica (Nasdaq:LULU) has soared 10% to reach a current price of $75.49 per share. So far today, 9.5 million shares of the company's stock have changed hands. This is greater than yesterday's volume of five million shares. Volume is an important indicator because it indicates how significant a price shift is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. LULU's PEG ratio of 1.74 is in line 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.
Schnitzer Steel Industries (Nasdaq:SCHN) has risen 8.8% and is currently trading at $31.10 per share. At 205,883 shares, the company's volume so far today is consistent with its current three-month average. 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. Dividend yield measures the income that a stock will generate for an investor. SCHN has a dividend yield of 2.6%. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Guide To Stock-Picking Strategies: Income Investing
ABIOMED (Nasdaq:ABMD) is currently trading at a share price of $21.44, a 7.9% decline. The company is currently trading a volume of 504,406 shares. 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. 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 ABMD is 6.54, which is relatively high. 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.
Mellanox (Nasdaq:MLNX) is down 6.8% to reach $111.72 per share. At 1.2 million shares, the company's volume so far today is 1.3 times the average daily volume. A stock's volume conveys how excited investors are about it. 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. MLNX has a low debt ratio of 18%. 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.
Ulta Salon, Cosmetics & Fragrance (Nasdaq:ULTA) has risen 6% to hit a current price of $100.98 per share. So far today, the company's volume is 1.6 million shares. Volume indicates the level of interest that investors have in a company at its current price. 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 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. ULTA's P/B ratio of 10.87 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: Investment Valuation Ratios: Price/Book Value Ratio
Slipping 5.7%, Francesca's (Nasdaq:FRAN) is currently trading at $28.23 per share. With 1.5 million shares changing hands so far today, the company's volume is 0.8 times the current three-month average. Volume indicates the level of interest that investors have in a company at its current price. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). FRAN's P/E ratio of 38.4 is above the industry average of 26.11. 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 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: How To Find P/E And PEG Ratios
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.