After this morning's trading, the Nasdaq has moved up 0.2%, the S&P 500 has been relatively flat and the Dow has fallen 0.2%. The NYSE is a stock exchange based in New York City, considered the largest equities-based exchange in the world based on total market capitalization of its listed securities.
The biggest movers traded on the NYSE so far are:
|Company||Market Cap||Percentage Change|
|Ann (NYSE:ANN)||$1.37 billion||+19.2%|
|JM (NYSE:SJM)||$8.72 billion||+6.1%|
|Michael Kors (NYSE:KORS)||$9.57 billion||+5.7%|
|Polo Ralph Lauren (NYSE:RL)||$13.89 billion||+3.9%|
|InterOil Corporation (NYSE:IOC)||$4.03 billion||-3.4%|
|Credicorp Ltd (NYSE:BAP)||$9.1 billion||+3%|
|TransDigm Group (NYSE:TDG)||$6.81 billion||+3%|
Software Summary: Finviz.com Stock Screener
Ann (NYSE:ANN) is trading at $33.53 per share, a significant rise of 19.2%. So far today, 5.3 million shares of the company's stock have changed hands. This is greater than yesterday's volume of 955,772 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. ANN has a PEG ratio of 1.29, which is consistent with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
JM (NYSE:SJM) has increased to a share price of $83.76, a 6.1% rise. So far today, 1.4 million shares have changed hands. 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. The P/B ratio for SJM is 1.79, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio
Michael Kors (NYSE:KORS) is up 5.7% to reach a current price of $52.34 per share. The company's volume for the day so far is 2.9 million shares, in keeping with the average volume over the past three months. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. KORS has a low debt ratio of 32%. A low debt ratio means the company has more available cash flow. 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.
Polo Ralph Lauren (NYSE:RL) has moved up 3.9% and is currently trading at $158.34 per share. The company's volume for the day so far is 581,307 shares. This is consistent with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. RL has a P/E ratio of 21.2, in line with the industry average. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Find P/E And PEG Ratios
InterOil Corporation (NYSE:IOC) is trading at $80.53 per share, down 3.4%. At 313,228 shares, the company's volume so far today is lighter than yesterday's volume of 909,784 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The debt-equity (D/E) ratio is a leverage ratio. IOC's debt-equity ratio of 15% is on the low end. 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 percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Credicorp Ltd (NYSE:BAP) is currently trading at $117.55 per share, a 3% increase. The company's volume for the day so far is 212,166 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. BAP's capitalization ratio of 53.6% is relatively high. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Increasing 3%, TransDigm Group (NYSE:TDG) is trading at $136.33 per share. At 411,032 shares, the company's volume so far today is 1.1 times the average volume over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. TDG's PEG ratio of 1.04 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.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.