The market is having a good day so far. The Nasdaq has risen 0.8%; the S&P 500 has increased 0.7%; and the Dow has moved up 0.6%. Today, more than half of all NYSE trades are conducted electronically, although floor traders are still used to set pricing and deal in high volume institutional trading.
The biggest movers traded on the NYSE so far are:
|Company||Market Cap||Percentage Change|
|WMS Industries Inc. (NYSE:WMS)||$1.01 billion||-18%|
|Mindray Medical International Ltd (ADR) (NYSE:MR)||$3.61 billion||+14.2%|
|Warnaco Group Inc (NYSE:WRC)||$1.75 billion||+13.7%|
|Church & Dwight Co., Inc. (NYSE:CHD)||$7.74 billion||-8.3%|
|Nu Skin Enterprises, Inc. (NYSE:NUS)||$3.08 billion||-6.9%|
|PVH Corp (NYSE:PVH)||$5.55 billion||+6.4%|
|Concho Resources Inc. (NYSE:CXO)||$9.28 billion||+5%|
Broker Summary: OptionsXpress Online Trading Platform
Taking a 18% hit, WMS Industries (NYSE:WMS) is currently trading at $14.97 per share. The company's volume is currently 3.8 million shares for the day, more than yesterday's 1.2 million shares. Volume is an important indicator because it indicates how significant a price shift 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. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). The P/E ratio for WMS is 19.4, above the industry average of 10.23. 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. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: The P/E Ratio: A Good Market-Timing Indicator
After a big jump of 14.2%, Mindray Medical International Ltd (NYSE:MR) is trading at $35.79 per share. This morning, the company's volume is 1.6 million shares. This is 3.4 times the current daily average. 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. When used consistently and uniformly, the price/earnings to growth (PEG) ratio is an essential tool that adds dimension to the price/earnings ratio, allows comparisons across diverse industries and is always on the lookout for value. PEG ratio for MR is 1.47. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Warnaco Group (NYSE:WRC) has soared 13.7% to reach a current price of $48.41 per share. With 1.2 million shares changing hands so far today, the company's volume is 2.6 times the average volume over the last three months. Volume indicates the level of interest that investors have in a company at its current price. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. WRC's stock is trading for more than its book value with a P/B ratio of 2.05. 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Investment Valuation Ratios: Price/Book Value Ratio
Church & Dwight Co (NYSE:CHD) is trading at $51.05 per share, down 8.3%. This morning, the company is trading a volume of 2.2 million shares. 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-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. CHD has a debt-equity ratio of 12%, 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.
Slipping 6.9%, Nu Skin Enterprises (NYSE:NUS) is currently trading at $45.47 per share. This morning, 6.3 million shares have been traded, whereas yesterday, volume was only 674,076 shares. 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. 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. The price/sales ratio measures a company's stock market price by its revenues. NUS' P/S ratio of 1.5 is on the high side. 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 6.4%, PVH (NYSE:PVH) is currently trading at a share price of $83.93. The company's volume for the day so far is 920,848 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. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. PVH's debt ratio is 58.3%. 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.
Concho Resources (NYSE:CXO) is up 5% to reach a current price of $93.67 per share. The company's volume for the day so far is one million shares, 0.9 times the current three-month average. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. The capitalization ratio for CXO is 43%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. 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.