On a good day for the market, the Nasdaq has increased 0.2%, the S&P 500 has climbed 0.2% and the Dow is trading up 0.3%. 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:
|Company||Market Cap||Percentage Change|
|OYO (Nasdaq:OYOG)||$597.9 million||+15.2%|
|Francesca\'s (Nasdaq:FRAN)||$1.57 billion||-14%|
|CONN\'S (Nasdaq:CONN)||$777.8 million||+8.5%|
|Gulfport (Nasdaq:GPOR)||$1.43 billion||+8.3%|
|G-III Apparel (Nasdaq:GIII)||$656.6 million||+7.2%|
|Pharmacyclics (Nasdaq:PCYC)||$4.82 billion||-4.2%|
|Questcor Pharmaceuticals (Nasdaq:QCOR)||$2.85 billion||+4.2%|
Broker Summary: TD Ameritrade Thinkorswim
OYO (Nasdaq:OYOG) is trading at $108.02 per share, a significant rise of 15.2%. The company is trading at a volume of 81,042 shares. Yesterday's volume was only 36,005 shares. Volume is used to evaluate how meaningful the price movement of a stock is. 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/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). OYOG has a P/E ratio of 17.4, high compared to the industry average of 13.66. 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: Profit With The Power Of Price-To-Earnings
Francesca's (Nasdaq:FRAN) is at a share price of $31.03 after a sharp decline of 14%. At five million shares, the company's volume so far today is 6.6 times the average daily volume. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. 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/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. PEG ratio for FRAN is consistent with the industry average at 2.08. 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.
CONN'S (Nasdaq:CONN) has risen 8.5% to hit a current price of $25.99 per share. The company is currently trading a volume of 988,974 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. CONN's P/B ratio of 2.29 shows that its share price is higher than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. 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: Using The Price-To-Book Ratio To Evaluate Companies
Gulfport (Nasdaq:GPOR) has moved up 8.3% and is currently trading at $27.85 per share. The company's volume for the day so far is 925,873 shares, 1.1 times the 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. 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. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for GPOR is a high 4.45. 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.
After rising 7.2%, G-III Apparel (Nasdaq:GIII) is currently trading at a share price of $35.24. The company's volume for the day so far is 419,383 shares. This is greater than yesterday's volume of 211,406 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. GIII has a low debt ratio of 32.3%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
After a decline of 4.2%, Pharmacyclics (Nasdaq:PCYC) has hit a share price of $66.87. At 658,558 shares, the company's volume so far today is one times the current daily average. A stock's volume conveys how excited investors are about it. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a 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. PCYC's P/E ratio is 349.0. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: The P/E Ratio: A Good Market-Timing Indicator
Questcor Pharmaceuticals (Nasdaq:QCOR) is currently trading at $49.80 per share, a 4.2% increase. The company's volume for the day so far is one million shares. 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. The assumption with high price/earnings stocks (generally of the growth variety) is that investors are willing to buy at a high price because they believe that the stock has significant growth potential, and the price/earnings to growth (PEG) ratio helps investors determine the degree of reliability of that growth assumption. QCOR's PEG ratio is 0.59. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.