The Nasdaq has decreased 0.2%, the S&P 500 has moved little and the Dow has been relatively flat after the morning's trading.
The Real Estate Operations sector (IYR) has changed little on a quiet day for the overall market. These are the biggest movers in the sector currently:
|Company||Market Cap||Percentage Change|
|Zillow (Nasdaq:Z)||$1.14 billion||+2.2%|
|Marriott Vacations (NYSE:VAC)||$1.09 billion||+2%|
|Select Income (NYSE:SIR)||$760.7 million||+1.9%|
|Pennsylvania (NYSE:PEI)||$892.2 million||-1.5%|
|Urstadt Biddle Properties (NYSE:UBP)||$560.5 million||+1.5%|
|Brookfield Office Properties (NYSE:BPO)||$8.65 billion||-1.2%|
|American Capital (Nasdaq:AGNC)||$11.75 billion||+0.9%|
Broker Summary: TD Ameritrade Thinkorswim
Zillow (Nasdaq:Z) is at $39.84 per share after an increase of 2.2%. The company's volume for the day so far is 195,292 shares. Volume indicates the level of interest that investors have in a company at its current price. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. Z has a P/B ratio of 10.35 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: How Buybacks Warps The Price-To-Book Ratio
After rising 2%, Marriott Vacations (NYSE:VAC) is currently trading at a share price of $32.40. The company's volume is currently 42,162 shares for the day, 0.2 times the 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. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. VAC's debt ratio is 56.4%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Select Income (NYSE:SIR) is up 1.9% to reach a current price of $24.85 per share. So far today, 12,687 shares of the company's stock have changed hands. At this rate, trading activity will likely be down from yesterday when 85,582 shares changed hands. 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 dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. SIR's dividend yield is 6.6%. For income-oriented investors such as retirees, a stock with a high dividend yield may be more attractive than a stock with a low dividend yield. SEE: Due Diligence On Dividends
Pennsylvania (NYSE:PEI) is trading at $15.69 per share, down 1.5%. The company's volume is currently 84,051 shares for the day, 0.2 times the average daily volume. Volume is used to evaluate how meaningful the price movement of a stock is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for PEI is 1.41, 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: Using The Price-To-Book Ratio To Evaluate Companies
Urstadt Biddle Properties (NYSE:UBP) has risen 1.5% and is currently trading at $19.09 per share. This morning, the company is trading a volume of 3,291 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios include 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. Dividend yield measures the income that a stock will generate for an investor. UBP has a dividend yield of 4.8%. 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: Dividend Yield For The Downturn
Brookfield Office Properties (NYSE:BPO) is down 1.2% to reach $16.96 per share. The company's volume for the day so far is 301,945 shares, 0.2 times the average volume over the last three months. A stock's volume conveys how excited investors are about it. 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. 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). BPO has a PEG ratio of 2.11, 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.
American Capital (Nasdaq:AGNC) has increased to a share price of $34.70, a 0.9% rise. So far today, the company's volume is two million shares. This is about the same trading activity as there was yesterday. If a stock price moves on high volume, this means that the change is a significant one. Valuation ratios like 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 are useful in determining how attractive a potential or existing investment is. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. AGNC's stock is trading for more than its book value with a P/B ratio of 1.32. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. 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: How Buybacks Warps The Price-To-Book Ratio
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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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