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Anheuser-Busch InBev NV and Other Big Movers In Consumer/Non-Cyclical on September 28, 2012
It's been a bad day for the market after the morning's trading. The Nasdaq has fallen 0.8%; the S&P 500 has slipped 0.7%; and the Dow has declined 0.7%.
The Consumer/Non-Cyclical sector (XLP) is currently ahead of the overall market, down only 0.6%, and its biggest movers are currently:
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Currently trading at $23.81 per share, Green Mountain Coffee Roasters (Nasdaq:GMCR) has fallen 3.8%. So far today, 2.7 million shares have changed hands, while it was seven million shares yesterday. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. The debt-equity ratio of 18% is relatively low. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
At $43.81, Sanderson Farms (Nasdaq:SAFM) has slipped 2.7%. This morning, the company is trading a volume of 191,361 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. SAFM's P/B ratio of 1.85 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Falling 2%, Annies (NYSE:BNNY) is currently at a share price of $44.41. The company's volume for the day so far is 9,818 shares, zero times its current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. BNNY's debt ratio of 8.6% is on the low side. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Slipping 1.7%, Anheuser-Busch InBev NV (NYSE:BUD) is currently trading at $85.15 per share. So far this morning, 449,993 shares have changed hands. This is in keeping with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. BUD's capitalization ratio is 46.1%. 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.
After a decline of 1.7%, Mead Johnson (NYSE:MJN) has hit a share price of $73.09. The company's volume is currently 484,421 shares for the day, on pace to reach yesterday's volume of 938,630 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 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. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. MJN has a P/E ratio of 27.0. 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: Investment Valuation Ratios: Price/Earnings Ratio
Increasing 1.7%, Nu Skin Enterprises (NYSE:NUS) is trading at $38.49 per share. The company is currently trading a volume of 654,644 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. NUS' debt-equity ratio of 39% 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.
Boston Beer Co (NYSE:SAM) is down 1.7% to reach $111.81 per share. So far today, the company's volume is 20,905 shares, 0.2 times its average over the past three months. The trading volume for a stock indicates the level of investor interest. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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. SAM has a P/B ratio of 6.86 which shows that its share price is higher than its book value. 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
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.
The Consumer/Non-Cyclical sector (XLP) is currently ahead of the overall market, down only 0.6%, and its biggest movers are currently:
| Company | Market Cap | Percentage Change |
| Green Mountain Coffee Roasters (Nasdaq:GMCR) | $3.85 billion | -3.8% |
| Sanderson Farms (Nasdaq:SAFM) | $1.03 billion | -2.7% |
| Annies (NYSE:BNNY) | $773.2 million | -2% |
| Anheuser-Busch InBev NV (NYSE:BUD) | $139.18 billion | -1.7% |
| Mead Johnson (NYSE:MJN) | $15.15 billion | -1.7% |
| Nu Skin Enterprises (NYSE:NUS) | $2.27 billion | +1.7% |
| Boston Beer Co (NYSE:SAM) | $1.47 billion | -1.7% |
Currently trading at $23.81 per share, Green Mountain Coffee Roasters (Nasdaq:GMCR) has fallen 3.8%. So far today, 2.7 million shares have changed hands, while it was seven million shares yesterday. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. The debt-equity ratio of 18% is relatively low. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
At $43.81, Sanderson Farms (Nasdaq:SAFM) has slipped 2.7%. This morning, the company is trading a volume of 191,361 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. SAFM's P/B ratio of 1.85 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Falling 2%, Annies (NYSE:BNNY) is currently at a share price of $44.41. The company's volume for the day so far is 9,818 shares, zero times its current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. BNNY's debt ratio of 8.6% is on the low side. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Slipping 1.7%, Anheuser-Busch InBev NV (NYSE:BUD) is currently trading at $85.15 per share. So far this morning, 449,993 shares have changed hands. This is in keeping with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. BUD's capitalization ratio is 46.1%. 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.
After a decline of 1.7%, Mead Johnson (NYSE:MJN) has hit a share price of $73.09. The company's volume is currently 484,421 shares for the day, on pace to reach yesterday's volume of 938,630 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 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. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. MJN has a P/E ratio of 27.0. 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: Investment Valuation Ratios: Price/Earnings Ratio
Increasing 1.7%, Nu Skin Enterprises (NYSE:NUS) is trading at $38.49 per share. The company is currently trading a volume of 654,644 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. NUS' debt-equity ratio of 39% 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.
Boston Beer Co (NYSE:SAM) is down 1.7% to reach $111.81 per share. So far today, the company's volume is 20,905 shares, 0.2 times its average over the past three months. The trading volume for a stock indicates the level of investor interest. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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. SAM has a P/B ratio of 6.86 which shows that its share price is higher than its book value. 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
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.
by
Investopedia Staff
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