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Anheuser-Busch InBev NV and Other Consumer/Non-Cyclical Stocks Making Big Moves on October 2, 2012
The Nasdaq has moved up 0.4%, the S&P 500 has increased 0.1% and the Dow has decreased 0.2% after the morning's trading.
The Consumer/Non-Cyclical sector (XLP) has risen 0.1% overall, and these are the biggest movers in the sector so far:
Forex Broker Summary: UFXMarkets
Herbalife (NYSE:HLF) is currently trading at $52.34 per share, a 4.2% increase. The company's volume for the day so far is 3.5 million shares, 2.1 times its current three-month average. 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 ratio is calculated by dividing total liabilities by total assets. The debt ratio for HLF is 82.3%, which is relatively high. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Coca-Cola HBC S.A (NYSE:CCH) has risen 4.2% to hit a current price of $19.66 per share. The company is trading at a volume of 19,163 shares. This is more trading activity than there was yesterday. 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. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. The D/E ratio for CCH is 78%. 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.
Anheuser-Busch InBev NV (NYSE:BUD) is at $88.25 per share after an increase of 3.2%. So far today, the company's volume is 649,833 shares, 0.7 times the 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. 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. The P/B ratio for BUD is 3.76, indicating that the stock is trading for more 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. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
After an increase of 3.1%, B&G Foods (NYSE:BGS) has reached a current price of $31.70. This morning, the company is trading a volume of 199,348 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. 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. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). The P/E ratio for BGS is 25.5, below the industry average of 40.02. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: How To Find P/E And PEG Ratios
Increasing 2.6%, Nu Skin Enterprises (NYSE:NUS) is trading at $41.55 per share. So far today, the company's volume is 1.2 million shares, consistent with its current three-month average. Volume indicates the level of interest that investors have in a company at its current price. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. NUS' PEG ratio is 0.97. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Compania Cervecerias Unidas S.A (NYSE:CCU) is up 2.5% to reach a current price of $73.47 per share. So far today, the company's volume is 18,600 shares. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. 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. CCU has a fairly low capitalization ratio of 22.6%. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Constellation Brands, Inc (NYSE:STZ) has increased to a share price of $33.37, a 2.1% rise. The company's volume is currently 791,061 shares for the day, 0.4 times its current daily average. Volume is an important indicator because it indicates how significant a price 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. 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. STZ's P/S ratio of 1.29 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. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
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.
The Consumer/Non-Cyclical sector (XLP) has risen 0.1% overall, and these are the biggest movers in the sector so far:
| Company | Market Cap | Percentage Change |
| Herbalife (NYSE:HLF) | $5.62 billion | +4.2% |
| Coca-Cola HBC S.A (NYSE:CCH) | $6.91 billion | +4.2% |
| Anheuser-Busch InBev NV (NYSE:BUD) | $137.39 billion | +3.2% |
| B&G Foods (NYSE:BGS) | $1.49 billion | +3.1% |
| Nu Skin Enterprises (NYSE:NUS) | $2.43 billion | +2.6% |
| Compania Cervecerias Unidas S.A (NYSE:CCU) | $4.56 billion | +2.5% |
| Constellation Brands, Inc (NYSE:STZ) | $5.79 billion | +2.1% |
Herbalife (NYSE:HLF) is currently trading at $52.34 per share, a 4.2% increase. The company's volume for the day so far is 3.5 million shares, 2.1 times its current three-month average. 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 ratio is calculated by dividing total liabilities by total assets. The debt ratio for HLF is 82.3%, which is relatively high. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Coca-Cola HBC S.A (NYSE:CCH) has risen 4.2% to hit a current price of $19.66 per share. The company is trading at a volume of 19,163 shares. This is more trading activity than there was yesterday. 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. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. The D/E ratio for CCH is 78%. 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.
Anheuser-Busch InBev NV (NYSE:BUD) is at $88.25 per share after an increase of 3.2%. So far today, the company's volume is 649,833 shares, 0.7 times the 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. 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. The P/B ratio for BUD is 3.76, indicating that the stock is trading for more 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. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
Increasing 2.6%, Nu Skin Enterprises (NYSE:NUS) is trading at $41.55 per share. So far today, the company's volume is 1.2 million shares, consistent with its current three-month average. Volume indicates the level of interest that investors have in a company at its current price. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. NUS' PEG ratio is 0.97. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Compania Cervecerias Unidas S.A (NYSE:CCU) is up 2.5% to reach a current price of $73.47 per share. So far today, the company's volume is 18,600 shares. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. 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. CCU has a fairly low capitalization ratio of 22.6%. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Constellation Brands, Inc (NYSE:STZ) has increased to a share price of $33.37, a 2.1% rise. The company's volume is currently 791,061 shares for the day, 0.4 times its current daily average. Volume is an important indicator because it indicates how significant a price 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. 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. STZ's P/S ratio of 1.29 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. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
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.
by
Investopedia Staff
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