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Today's Major NYSE Movers, Including LL
The Nasdaq has decreased 0.8%, the S&P 500 is down 0.2% and the Dow has climbed 0.4% this morning. Also known as the "Big Board", the NYSE relied for many years on floor trading only, using the open outcry system.
The biggest movers traded on the NYSE so far are:
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Lumber Liquidators Holdings (NYSE:LL) has soared 20.5% to reach a current price of $39.25 per share. So far this morning, 2.5 million shares have changed hands. This is 4.6 times its current daily average. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a 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 LL is consistent with the industry average at 1.91. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
SolarWinds (NYSE:SWI) is currently at $47.31 per share after a dramatic increase of 14.1%. The company's volume for the day so far is 1.7 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for SWI is 11.98, indicating that the stock is trading for more 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. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: How Buybacks Warps The Price-To-Book Ratio
After a big jump of 13.2%, Tempur-Pedic International (NYSE:TPX) is trading at $30.70 per share. So far today, 4.6 million shares have changed hands, which is more trading activity than there was yesterday. A stock's volume conveys how excited investors are about it. 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 price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). Relative to the industry P/E ratio of 31.01, TPX's 7.9 is low. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. 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: Can Investors Trust the P/E Ratio?
After a precipitous drop of 12%, WellPoint (NYSE:WLP) is now trading at a share price of $54.05. So far today, the company's volume is 7.9 million shares. This is 2.7 times the average volume over the last three months. 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. 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. WLP has a debt ratio of 55.2%. 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.
Taking a 11.4% hit, Watsco (NYSE:WSO) is currently trading at $67 per share. At 1.1 million shares, the company's volume so far today is 3.6 times its current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/sales ratio measures a company's stock market price by its revenues. WSO has a low P/S ratio of 0.8. The lower the P/S ratio, the more reasonably price the stock, all else being equal. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
W.R (NYSE:GRA) is trading at $55.90 per share, a significant rise of 10.7%. So far today, the company's volume is 1.2 million shares. A stock's volume conveys how excited investors are about it. 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 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. GRA has a high capitalization ratio of 79.5%. A company considered too highly leveraged (too much debt) may find its freedom of action restricted by its creditors and/or have its profitability hurt by high interest costs. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Increasing 7.5%, Chicago Bridge & Iron Company (NYSE:CBI) is trading at $39.13 per share. At 1.3 million shares, the company's volume so far today is more than yesterday's 1.2 million 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. 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. The debt-equity (D/E) ratio is a leverage ratio. CBI has a low debt-equity ratio of 3%. 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. 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.
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 |
| Lumber Liquidators Holdings Inc (NYSE:LL) | $897 million | +20.5% |
| SolarWinds, Inc. (NYSE:SWI) | $3.07 billion | +14.1% |
| Tempur-Pedic International Inc. (NYSE:TPX) | $1.72 billion | +13.2% |
| WellPoint (NYSE:WLP) | $20.32 billion | -12% |
| Watsco Inc (NYSE:WSO) | $2.6 billion | -11.4% |
| W.R. Grace & Co. (NYSE:GRA) | $3.77 billion | +10.7% |
| Chicago Bridge & Iron Company N.V. (NYSE:CBI) | $3.53 billion | +7.5% |
Lumber Liquidators Holdings (NYSE:LL) has soared 20.5% to reach a current price of $39.25 per share. So far this morning, 2.5 million shares have changed hands. This is 4.6 times its current daily average. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a 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 LL is consistent with the industry average at 1.91. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
SolarWinds (NYSE:SWI) is currently at $47.31 per share after a dramatic increase of 14.1%. The company's volume for the day so far is 1.7 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for SWI is 11.98, indicating that the stock is trading for more 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. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: How Buybacks Warps The Price-To-Book Ratio
After a big jump of 13.2%, Tempur-Pedic International (NYSE:TPX) is trading at $30.70 per share. So far today, 4.6 million shares have changed hands, which is more trading activity than there was yesterday. A stock's volume conveys how excited investors are about it. 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 price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). Relative to the industry P/E ratio of 31.01, TPX's 7.9 is low. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. 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: Can Investors Trust the P/E Ratio?
After a precipitous drop of 12%, WellPoint (NYSE:WLP) is now trading at a share price of $54.05. So far today, the company's volume is 7.9 million shares. This is 2.7 times the average volume over the last three months. 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. 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. WLP has a debt ratio of 55.2%. 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.
Taking a 11.4% hit, Watsco (NYSE:WSO) is currently trading at $67 per share. At 1.1 million shares, the company's volume so far today is 3.6 times its current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/sales ratio measures a company's stock market price by its revenues. WSO has a low P/S ratio of 0.8. The lower the P/S ratio, the more reasonably price the stock, all else being equal. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
W.R (NYSE:GRA) is trading at $55.90 per share, a significant rise of 10.7%. So far today, the company's volume is 1.2 million shares. A stock's volume conveys how excited investors are about it. 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 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. GRA has a high capitalization ratio of 79.5%. A company considered too highly leveraged (too much debt) may find its freedom of action restricted by its creditors and/or have its profitability hurt by high interest costs. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Increasing 7.5%, Chicago Bridge & Iron Company (NYSE:CBI) is trading at $39.13 per share. At 1.3 million shares, the company's volume so far today is more than yesterday's 1.2 million 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. 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. The debt-equity (D/E) ratio is a leverage ratio. CBI has a low debt-equity ratio of 3%. 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. 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.
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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