Free Annual Reports
Nasdaq Stocks Making Big Moves on July 3, 2012
After this morning's trading, the market is looking good. The Nasdaq has climbed 0.7%; the S&P 500 has risen 0.7%; and the Dow is up 0.6%. 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:
Beginner's Guide To Stockcharts.com
Currently trading at $13 per share, InnerWorkings (Nasdaq:INWK) has fallen 6.6%. So far today, 270,135 shares of the company's stock have changed hands. This is less trading activity than there was yesterday. In technical analysis, trading volume is used to determine the strength of a market indicator. Profit-margin ratios help us to keep score, as measured over time, of management's ability to generate profits and manage costs and expenses. There are three key profit-margin ratios: gross profit margin, operating profit margin and net profit margin. INWK has a low gross profit margin of 21.7%. Investors should track gross profit margin ratios over several years in order to see if earnings are consistent, growing or declining. Compared with its gross profit margin, INWK's operating profit margin of 3.1% and net profit margin of 2.6% are low.
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 debt-equity (D/E) ratio is a leverage ratio. INWK has a debt-equity ratio of 37%, which is on the low side. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After an increase of 6.2%, Clayton Williams Energy (Nasdaq:CWEI) has reached a current price of $52.04. At 20,901 shares, the company's volume so far today is 0.1 times the current daily average. 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. Margin ratios highlight companies that are worth further examination. The gross profit margin for CWEI is 67.1%. Operating margin provides a measure of a company's ability to pay its fixed costs such as interest on debt, particular if its business were to decline in the future. CWEI's operating profit margin is 24.6%. Net profit margin examines how effectively a company is managed and how profitable it is by looking at how much of each dollar in revenues ultimately hits the company's bottom line. Net profit margin for the company is 25.8%.
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/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). CWEI's P/E ratio of 5.4 is under the industry average of 25.62. 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. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Lufkin Industries (Nasdaq:LUFK) is at $55.76 per share after an increase of 5.5%. The company's volume for the day so far is 109,964 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. LUFK has a low gross profit margin of 24.4%. A low gross profit margin compared to competitors may be a sign that the company is under-pricing its products and/or services. LUFK has an operating profit margin of 8.6% and a net profit margin of 6.3%, both low compared to its gross profit margin.
Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. LUFK's capitalization ratio is 28.1%, which is relatively low. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Sourcefire (Nasdaq:FIRE) is down 5.2% to reach $49.67 per share. So far today, the company's volume is 1.6 million shares, 3.2 times its average over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. Margin analysis is a great way to understand the profitability of companies. FIRE's gross profit margin of 79% is on the high side. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. FIRE's operating margin of 0.3% and net margin of 3.2% are high relative to its gross margin.
When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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 FIRE is 13.3. 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.
Netflix (Nasdaq:NFLX) has risen 4.7% to hit a current price of $71.03 per share. The company's volume is currently 1.8 million shares. Yesterday, 1.9 million shares changed hands. If a stock price makes a big move up or down, volume lets us know the significance of that move. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. NFLX has a gross profit margin of 66.1%. Operating profit measures how much cash the business throws off, and some consider it a more reliable measure of profitability since it is harder to manipulate with accounting tricks than net earnings. NFLX's operating profit margin is -0.2%. In other words, the company reported a net operating loss in the most recent quarter. While ratios such as price/earnings (P/E) or price/book value look at the relative attractiveness of a stock, the net profit margin ratio focuses on company performance rather that stock market valuation. With a net profit margin of 4.8%, the company has a high one compared to its gross profit margin. Companies with high net profit margins have a bigger cushion to protect themselves during the hard times.
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 calculated by dividing the current stock price by the company's book value per share. NFLX has a P/B ratio of 5.94 which shows that its share price is higher than its book value. 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. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: How Buybacks Warps The Price-To-Book Ratio
F5 Networks (Nasdaq:FFIV) is currently trading at $101.81 per share, a 3.9% increase. So far today, the company's volume is 551,457 shares, 0.3 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 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. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. FFIV has a gross profit margin of 84.5%, which is on the high end. This may indicate that the company is over-pricing its products and/or services. Operating margin for FFIV is 30.8% and net margin is 20.9%, both high relative to its gross margin.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. While measuring a price/earnings ratio (P/E ratio) is a popular valuation technique, the measure cannot be calculated for companies without earnings, so some investors analyze the price/sales ratio. FFIV has a high P/S ratio of 8.44. 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.
Fossil (Nasdaq:FOSL) is trading at $72.02 per share, down 3.8%. So far today, the company's volume is 1.1 million shares. Volume is an important indicator because it indicates how significant a price shift is. Margin ratios highlight companies that are worth further examination. FOSL has a gross profit margin of 58.1%. The operating profit margin is a rough measure of the operating leverage a company can achieve in the conduct of the operational part of its business. FOSL has an operating profit margin of 14.1%. Net profit margin comes as close as possible to summing-up in a single figure how effectively managers run the business. The company's net profit margin is 11.3%.
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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. The debt ratio for FOSL is a low 28.6%. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
The biggest movers traded on the NASDAQ so far are:
| Company | Market Cap | Percentage Change |
| InnerWorkings, Inc. (Nasdaq:INWK) | $678.6 million | -6.6% |
| Clayton Williams Energy, Inc. (Nasdaq:CWEI) | $595.9 million | +6.2% |
| Lufkin Industries, Inc. (Nasdaq:LUFK) | $1.78 billion | +5.5% |
| Sourcefire, Inc. (Nasdaq:FIRE) | $1.55 billion | -5.2% |
| Netflix (Nasdaq:NFLX) | $3.77 billion | +4.7% |
| F5 Networks, Inc. (Nasdaq:FFIV) | $7.78 billion | +3.9% |
| Fossil, Inc. (Nasdaq:FOSL) | $4.64 billion | -3.8% |
Currently trading at $13 per share, InnerWorkings (Nasdaq:INWK) has fallen 6.6%. So far today, 270,135 shares of the company's stock have changed hands. This is less trading activity than there was yesterday. In technical analysis, trading volume is used to determine the strength of a market indicator. Profit-margin ratios help us to keep score, as measured over time, of management's ability to generate profits and manage costs and expenses. There are three key profit-margin ratios: gross profit margin, operating profit margin and net profit margin. INWK has a low gross profit margin of 21.7%. Investors should track gross profit margin ratios over several years in order to see if earnings are consistent, growing or declining. Compared with its gross profit margin, INWK's operating profit margin of 3.1% and net profit margin of 2.6% are low.
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 debt-equity (D/E) ratio is a leverage ratio. INWK has a debt-equity ratio of 37%, which is on the low side. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After an increase of 6.2%, Clayton Williams Energy (Nasdaq:CWEI) has reached a current price of $52.04. At 20,901 shares, the company's volume so far today is 0.1 times the current daily average. 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. Margin ratios highlight companies that are worth further examination. The gross profit margin for CWEI is 67.1%. Operating margin provides a measure of a company's ability to pay its fixed costs such as interest on debt, particular if its business were to decline in the future. CWEI's operating profit margin is 24.6%. Net profit margin examines how effectively a company is managed and how profitable it is by looking at how much of each dollar in revenues ultimately hits the company's bottom line. Net profit margin for the company is 25.8%.
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/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). CWEI's P/E ratio of 5.4 is under the industry average of 25.62. 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. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Lufkin Industries (Nasdaq:LUFK) is at $55.76 per share after an increase of 5.5%. The company's volume for the day so far is 109,964 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. LUFK has a low gross profit margin of 24.4%. A low gross profit margin compared to competitors may be a sign that the company is under-pricing its products and/or services. LUFK has an operating profit margin of 8.6% and a net profit margin of 6.3%, both low compared to its gross profit margin.
Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. LUFK's capitalization ratio is 28.1%, which is relatively low. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Sourcefire (Nasdaq:FIRE) is down 5.2% to reach $49.67 per share. So far today, the company's volume is 1.6 million shares, 3.2 times its average over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. Margin analysis is a great way to understand the profitability of companies. FIRE's gross profit margin of 79% is on the high side. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. FIRE's operating margin of 0.3% and net margin of 3.2% are high relative to its gross margin.
Netflix (Nasdaq:NFLX) has risen 4.7% to hit a current price of $71.03 per share. The company's volume is currently 1.8 million shares. Yesterday, 1.9 million shares changed hands. If a stock price makes a big move up or down, volume lets us know the significance of that move. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. NFLX has a gross profit margin of 66.1%. Operating profit measures how much cash the business throws off, and some consider it a more reliable measure of profitability since it is harder to manipulate with accounting tricks than net earnings. NFLX's operating profit margin is -0.2%. In other words, the company reported a net operating loss in the most recent quarter. While ratios such as price/earnings (P/E) or price/book value look at the relative attractiveness of a stock, the net profit margin ratio focuses on company performance rather that stock market valuation. With a net profit margin of 4.8%, the company has a high one compared to its gross profit margin. Companies with high net profit margins have a bigger cushion to protect themselves during the hard times.
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 calculated by dividing the current stock price by the company's book value per share. NFLX has a P/B ratio of 5.94 which shows that its share price is higher than its book value. 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. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: How Buybacks Warps The Price-To-Book Ratio
F5 Networks (Nasdaq:FFIV) is currently trading at $101.81 per share, a 3.9% increase. So far today, the company's volume is 551,457 shares, 0.3 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 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. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. FFIV has a gross profit margin of 84.5%, which is on the high end. This may indicate that the company is over-pricing its products and/or services. Operating margin for FFIV is 30.8% and net margin is 20.9%, both high relative to its gross margin.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. While measuring a price/earnings ratio (P/E ratio) is a popular valuation technique, the measure cannot be calculated for companies without earnings, so some investors analyze the price/sales ratio. FFIV has a high P/S ratio of 8.44. 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.
Fossil (Nasdaq:FOSL) is trading at $72.02 per share, down 3.8%. So far today, the company's volume is 1.1 million shares. Volume is an important indicator because it indicates how significant a price shift is. Margin ratios highlight companies that are worth further examination. FOSL has a gross profit margin of 58.1%. The operating profit margin is a rough measure of the operating leverage a company can achieve in the conduct of the operational part of its business. FOSL has an operating profit margin of 14.1%. Net profit margin comes as close as possible to summing-up in a single figure how effectively managers run the business. The company's net profit margin is 11.3%.
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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. The debt ratio for FOSL is a low 28.6%. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
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
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=53eb4bb2ed5b60a8bfa485fc44832a82
