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Tickers in this Article: LULU, WTW, CMG, ULTA, FRAN, AMZN, TIF
After the morning's trading, the Nasdaq has fallen 0.2%, the S&P 500 is up 0.3% and the Dow has moved little.

The biggest movers in the Services sector (IYC) (+0.2%) are:
CompanyMarket CapPercentage Change
Lululemon Athletica (Nasdaq:LULU)$7.31 billion+10%
Weight Watchers International (NYSE:WTW)$2.7 billion+6.4%
Chipotle Mexica (NYSE:CMG)$9.58 billion+6.3%
Ulta Salon, Cosmetics & Fragrance (Nasdaq:ULTA)$6 billion+6%
Francesca\'s (Nasdaq:FRAN)$1.31 billion-5.7% (Nasdaq:AMZN)$113.64 billion+3.1%
Tiffany (NYSE:TIF)$7.69 billion+2.9%
Broker Summary: Fidelity Online Brokerage

Lululemon Athletica (Nasdaq:LULU) is trading at $75.49 per share, a significant rise of 10%. So far today, the company's volume is 9.5 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. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. 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). PEG ratio for LULU is consistent with the industry average at 1.74. 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 rising 6.4%, Weight Watchers International (NYSE:WTW) is currently trading at a share price of $51.75. So far today, the company's volume is 383,473 shares, consistent with its current daily average. The trading volume for a stock indicates the level of investor interest. 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. 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. WTW has a capitalization ratio of 420.8%, which is on the high end. If the company is a company is in a highly competitive business and hobbled by high debt, it will find its competitors taking advantage of its problems to grab more market share. 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.

Chipotle Mexica (NYSE:CMG) has risen 6.3% and is currently trading at $321.23 per share. The company's volume is currently 1.1 million shares. This is more trading activity than there was yesterday. If a stock price moves on high volume, this means that the change is a significant one. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. CMG's P/E ratio of 36.7 is above the industry average of 19.87. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. 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 Use The P/E Ratio And PEG To Tell The Future Of A Stock

Ulta Salon, Cosmetics & Fragrance (Nasdaq:ULTA) is currently trading at $100.98 per share, a 6% increase. The company's volume for the day so far is 1.6 million shares, 1.9 times its current three-month average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift 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. 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. ULTA has a P/B ratio of 10.87 which 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: Investment Valuation Ratios: Price/Book Value Ratio

Currently trading at $28.23 per share, Francesca's (Nasdaq:FRAN) has fallen 5.7%. So far today, 1.5 million shares have changed hands. Volume is an important indicator because it indicates how significant a price shift 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. While measuring a price/earnings ratio (P/E ratio) is a popular valuation technique, the measure cannot be calculated for companies without earnings, so some investors analyze the price/sales ratio. FRAN's P/S ratio of 5.52 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. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies. (Nasdaq:AMZN) has risen 3.1% and is currently trading at $259.20 per share. The company's volume is currently 2.8 million shares for the day, 0.9 times its current daily average. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. The debt ratio for AMZN is 64.3%, which is relatively high. This means that most of the company's assets are financed through debt. 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.

Increasing 2.9%, Tiffany (NYSE:TIF) is trading at $62.49 per share. So far today, the company's volume is 1.2 million shares. This is on pace to reach yesterday's trading volume of 2.2 million shares. A stock's volume conveys how excited investors are about it. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio is a leverage ratio. TIF has a low debt-equity ratio of 42%. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.

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.

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