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NYSE Stocks, Including Linkedin, Making Big Moves on October 3, 2012
This morning has been good for the market. The Nasdaq is up 0.6%; the S&P 500 has risen 0.4%; and the Dow has climbed 0.3%. 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:
Forex Broker Summary: UFXMarkets
Ocwen (NYSE:OCN) has soared 16.5% to reach a current price of $33.75 per share. So far today, 5.1 million shares have changed hands. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Valuation ratios allow the investor to make a quick determination as to a company's investment value. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. Compared to the industry average of 10.87, OCN's P/E ratio of 40.2 is quite high. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. 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 Use The P/E Ratio And PEG To Tell The Future Of A Stock
Falling 7.4%, Heartland Payment Systems (NYSE:HPY) is currently at a share price of $30.36. So far today, 1.1 million shares have changed hands, above yesterday's volume of 283,418 shares. Volume indicates the level of interest that investors have in a company at its current price. 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. 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). HPY has a PEG ratio of 1.75, 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.
SPX (NYSE:SPW) is up 5.5% to reach a current price of $67.50 per share. The company is currently trading a volume of 654,308 shares. This is 1.1 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. 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. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. SPW's stock is trading for more than its book value with a P/B ratio of 1.58. 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
DineEquity (NYSE:DIN) has moved up 4.8% and is currently trading at $59.25 per share. So far today, the company's volume is 126,979 shares, 1.1 times the average daily volume. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. A price/sales ratio is derived by dividing stock market price by company sales. DIN has a P/S ratio of 0.83, on the low end. Low P/S ratios are more attractive than high ratios because this indicates that an investor is paying less for each dollar of sales. 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.
Family Dollar (NYSE:FDO) is at $68.67 per share after an increase of 4%. So far today, the company's volume is 2.7 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio is calculated by dividing total liabilities by total assets. FDO's debt ratio is 59.9%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Oil States International (NYSE:OIS) is trading at $76.37 per share, down 3.4%. This morning, 319,494 shares have been traded, which is likely to result in less activity than yesterday's volume of 815,141 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt-equity (D/E) ratio is a leverage ratio. The D/E ratio for OIS is 52%. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
Rising 2.8%, Linkedin (NYSE:LNKD) is currently trading at $122.09 per share. So far today, the company's volume is 680,729 shares. This is consistent with the average over the past three months. 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. 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. LNKD's P/B ratio of 16.48 shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. 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: How Buybacks Warps The Price-To-Book Ratio
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
The biggest movers traded on the NYSE so far are:
| Company | Market Cap | Percentage Change |
| Ocwen (NYSE:OCN) | $3.91 billion | +16.5% |
| Heartland Payment Systems (NYSE:HPY) | $1.28 billion | -7.4% |
| SPX (NYSE:SPW) | $3.25 billion | +5.5% |
| DineEquity (NYSE:DIN) | $1.04 billion | +4.8% |
| Family Dollar (NYSE:FDO) | $7.71 billion | +4% |
| Oil States International (NYSE:OIS) | $4.33 billion | -3.4% |
| Linkedin (NYSE:LNKD) | $12.55 billion | +2.8% |
Ocwen (NYSE:OCN) has soared 16.5% to reach a current price of $33.75 per share. So far today, 5.1 million shares have changed hands. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Valuation ratios allow the investor to make a quick determination as to a company's investment value. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. Compared to the industry average of 10.87, OCN's P/E ratio of 40.2 is quite high. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. 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 Use The P/E Ratio And PEG To Tell The Future Of A Stock
Falling 7.4%, Heartland Payment Systems (NYSE:HPY) is currently at a share price of $30.36. So far today, 1.1 million shares have changed hands, above yesterday's volume of 283,418 shares. Volume indicates the level of interest that investors have in a company at its current price. 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. 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). HPY has a PEG ratio of 1.75, 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.
SPX (NYSE:SPW) is up 5.5% to reach a current price of $67.50 per share. The company is currently trading a volume of 654,308 shares. This is 1.1 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. 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. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. SPW's stock is trading for more than its book value with a P/B ratio of 1.58. 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
Family Dollar (NYSE:FDO) is at $68.67 per share after an increase of 4%. So far today, the company's volume is 2.7 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio is calculated by dividing total liabilities by total assets. FDO's debt ratio is 59.9%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Oil States International (NYSE:OIS) is trading at $76.37 per share, down 3.4%. This morning, 319,494 shares have been traded, which is likely to result in less activity than yesterday's volume of 815,141 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt-equity (D/E) ratio is a leverage ratio. The D/E ratio for OIS is 52%. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
Rising 2.8%, Linkedin (NYSE:LNKD) is currently trading at $122.09 per share. So far today, the company's volume is 680,729 shares. This is consistent with the average over the past three months. 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. 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. LNKD's P/B ratio of 16.48 shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. 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: How Buybacks Warps The Price-To-Book Ratio
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
by
Investopedia Staff
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