The market is off to a rough start. After this morning's trading, the Nasdaq is down 0.9%, the S&P 500 has fallen 0.7% and the Dow has decreased 0.7%. 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|
|Pandora Media (NYSE:P)||$1.68 billion||+18.3%|
|BP Prudhoe Bay (NYSE:BPT)||$1.64 billion||+13.6%|
|Visteon (NYSE:VC)||$2.24 billion||+8.4%|
|Greif (NYSE:GEF)||$1.92 billion||+7%|
|Buckle (NYSE:BKE)||$2.07 billion||+6.3%|
|InterOil Corporation (NYSE:IOC)||$4.03 billion||-3.9%|
|Shinhan Financial Group Co., Ltd (NYSE:SHG)||$15.37 billion||-3.8%|
Forex Broker Summary: UFXMarkets
Pandora Media (NYSE:P) rose a significant 18.3% to reach $11.92 per share. The company is currently trading a volume of 22.4 million shares. A stock's volume conveys how excited investors are about it. 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. 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. P's P/B ratio of 21.67 shows that its share price is higher 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
After a big jump of 13.6%, BP Prudhoe Bay (NYSE:BPT) is trading at $87.18 per share. The company's volume is currently 1.4 million shares for the day, two times its average over the past three months. 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. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. P/E ratio for BPT is 7.9. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: The P/E Ratio: A Good Market-Timing Indicator
After rising 8.4%, Visteon (NYSE:VC) is currently trading at a share price of $46.01. So far today, 1.3 million shares of the company's stock have changed hands. This is greater than yesterday's volume of 537,888 shares. 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. 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. VC's PEG ratio is 2.26. 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.
After an increase of 7%, Greif (NYSE:GEF) has reached a current price of $43.56. At 373,891 shares, the company's volume so far today is 2.1 times the average daily volume. 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. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. GEF's dividend yield is 4.1%. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Investment Valuation Ratios: Dividend Yield
Buckle (NYSE:BKE) has risen 6.3% to hit a current price of $45.94 per share. This morning, the company is trading a volume of 371,873 shares. 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 make use of valuation ratios to estimate whether a stock is fairly valued. The price/sales ratio measures a company's stock market price by its revenues. BKE has a high P/S ratio of 1.7. This could be a good sign if the share price increases. 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 a decline of 3.9%, InterOil Corporation (NYSE:IOC) has hit a share price of $80.06. So far today, the company's volume is 199,735 shares, 0.2 times its 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for IOC is a low 35.6%. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Slipping 3.8%, Shinhan Financial Group Co., Ltd (NYSE:SHG) is currently trading at $62.36 per share. The company's volume for the day so far is 15,614 shares. This is on pace to fall short of yesterday's volume of 205,904 shares. 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. 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. SHG has a high D/E ratio of 249%. Companies in capital-intensive industries usually have higher D/E ratios because they need to buy more property, plants, and equipment to operate. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
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. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.