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Barrick Gold Corporation (USA) and Other Basic Materials Stocks Making Big Moves
The Nasdaq has increased 0.8%, the S&P 500 has moved up 0.3% and the Dow is trading up 0.3% on a good day for the market so far. The basic materials sector is the category of stocks that accounts for companies involved with the discovery, development and processing of raw materials. This sector includes the mining and refining of metals, chemical producers and forestry products. The basic materials sector is sensitive to changes in the business cycle. Because the sector supplies materials for construction, it depends on a strong economy. This sector is also sensitive to supply and demand fluctuations because the price of raw materials, such as gold or other metals, is largely demand driven.
The Basic Materials sector (XLB) is up 0.9%, outperforming the market overall. The biggest movers in the sector so far are:
Broker Summary: Charles Schwab Online Brokerage
Molycorp (NYSE:MCP) is currently trading at a share price of $11.50, a 4.6% decline. This morning, the company is trading a volume of 3.6 million shares. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. MCP has a debt ratio of 54.2%. 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.
After rising 3.6%, Barrick Gold Corporation (NYSE:ABX) is currently trading at a share price of $35.95. The company's volume is currently 4.1 million shares for the day, 0.6 times the current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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 ABX is 56%. 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.
After an increase of 3.3%, Agnico-Eagle Mines Limited (NYSE:AEM) has reached a current price of $45.39. The company's volume is currently 504,634 shares. This is on pace to fall short of yesterday's volume of 1.7 million shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 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. AEM has a fairly low capitalization ratio of 20.2%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Currently trading at $32.41 per share, Universal Forest Products (Nasdaq:UFPI) has fallen 3.3%. At 73,972 shares, the company's volume so far today is one times the average daily volume. 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 price/book value ratio is calculated by dividing the current stock price by the company's book value per share. UFPI's stock is trading for more than its book value with a P/B ratio of 1.07. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Goldcorp Inc (NYSE:GG) is at $37.88 per share after an increase of 3.2%. The company's volume for the day so far is 1.7 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). P/E ratio for GG is 23.6. 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?
Sasol Limited (NYSE:SSL) has risen 2.8% to hit a current price of $43.27 per share. With 102,627 shares changing hands so far today, the company's volume is in keeping with the average volume over the past three months. 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. 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/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. SSL's PEG ratio is 4.74. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Rising 2.5%, Royal Gold (Nasdaq:RGLD) is currently trading at $77.56 per share. So far today, 209,913 shares of the company's stock have changed hands. 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. 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 is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. RGLD has a dividend yield of 0.8%, which is fairly low. If you are an income investor, this stock may not be attractive to you. 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
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. 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 Basic Materials sector (XLB) is up 0.9%, outperforming the market overall. The biggest movers in the sector so far are:
| Company | Market Cap | Percentage Change |
| Molycorp Inc. (NYSE:MCP) | $1.33 billion | -4.6% |
| Barrick Gold Corporation (USA) (NYSE:ABX) | $34.71 billion | +3.6% |
| Agnico-Eagle Mines Limited (USA) (NYSE:AEM) | $7.54 billion | +3.3% |
| Universal Forest Products, Inc. (Nasdaq:UFPI) | $661.1 million | -3.3% |
| Goldcorp Inc. (USA) (NYSE:GG) | $29.76 billion | +3.2% |
| Sasol Limited (ADR) (NYSE:SSL) | $25.22 billion | +2.8% |
| Royal Gold, Inc. (Nasdaq:RGLD) | $4.45 billion | +2.5% |
Molycorp (NYSE:MCP) is currently trading at a share price of $11.50, a 4.6% decline. This morning, the company is trading a volume of 3.6 million shares. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. MCP has a debt ratio of 54.2%. 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.
After rising 3.6%, Barrick Gold Corporation (NYSE:ABX) is currently trading at a share price of $35.95. The company's volume is currently 4.1 million shares for the day, 0.6 times the current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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 ABX is 56%. 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.
After an increase of 3.3%, Agnico-Eagle Mines Limited (NYSE:AEM) has reached a current price of $45.39. The company's volume is currently 504,634 shares. This is on pace to fall short of yesterday's volume of 1.7 million shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 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. AEM has a fairly low capitalization ratio of 20.2%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Currently trading at $32.41 per share, Universal Forest Products (Nasdaq:UFPI) has fallen 3.3%. At 73,972 shares, the company's volume so far today is one times the average daily volume. 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 price/book value ratio is calculated by dividing the current stock price by the company's book value per share. UFPI's stock is trading for more than its book value with a P/B ratio of 1.07. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Goldcorp Inc (NYSE:GG) is at $37.88 per share after an increase of 3.2%. The company's volume for the day so far is 1.7 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). P/E ratio for GG is 23.6. 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?
Sasol Limited (NYSE:SSL) has risen 2.8% to hit a current price of $43.27 per share. With 102,627 shares changing hands so far today, the company's volume is in keeping with the average volume over the past three months. 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. 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/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. SSL's PEG ratio is 4.74. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Rising 2.5%, Royal Gold (Nasdaq:RGLD) is currently trading at $77.56 per share. So far today, 209,913 shares of the company's stock have changed hands. 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. 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 is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. RGLD has a dividend yield of 0.8%, which is fairly low. If you are an income investor, this stock may not be attractive to you. 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
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. 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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