Free Annual Reports
Biggest Financial Sector Movers for July 12, 2012
It's been a bad day for the market after the morning's trading. The Nasdaq is trading down 1.3%; the S&P 500 has slipped 0.8%; and the Dow is down 0.5%. The financial sector is the category of stocks containing firms that provide financial services to commercial and retail customers. This sector includes banks, investment funds, insurance companies and real estate. Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop. Furthermore, when the business cycle is in an upswing, the financial sector benefits from additional investments. Improved economic conditions usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a larger number of loans.
The Financial sector (XLF) is down 1.1%, outperforming the market overall. Currently, the biggest movers in the sector are:
Forex Broker Summary: UFXMarkets
Altisource Portfolio Solutions (Nasdaq:ASPS) is trading at $69.07 per share, down 5.9%. The company's volume for the day so far is 130,386 shares. Volume indicates the level of interest that investors have in a company at its current price. 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. 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. ASPS has a fairly low capitalization ratio of 0%. Low leverage is a significant balance sheet strength, a sign of a less risky investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
MBIA (NYSE:MBI) has increased to a share price of $10.26, a 4.3% rise. This morning, five million shares have been traded, above yesterday's volume of 2.7 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. The company's net profit margin is negative. This shows that the company reported a net loss in the most recent quarter.
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 price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. MBI's P/B ratio of 1.07 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. 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 3.9%, Shinhan Financial Group Co., Ltd (NYSE:SHG) is currently at a share price of $64.37. The company is currently trading a volume of 15,373 shares. This is 0.7 times the average volume over the last three months. 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The dividend yield is calculated by dividing a company's dividends per share by its stock price. The dividend yield for SHG is 2%, which is on the low end. A company with a low dividend yield may be a safer investment in the long run. Simply comparing the level of dividends that two stocks pay does not give a true reflection of which security is more attractive, so investors calculate the dividend yield in order to standardize dividend payments. SEE: Guide To Stock-Picking Strategies: Income Investing
After a decline of 2.6%, Alliance Data (NYSE:ADS) has hit a share price of $130.91. The company's volume is currently 657,521 shares for the day, 1.6 times the average daily volume. In technical analysis, trading volume is used to determine the strength of a market indicator. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. The gross profit margin for ADS is 44.1%. Operating margin can be an important ratio for some investors, particularly those investing in weaker companies or companies in cyclical industries. With an operating profit margin of 28.3%, ADS has a low one relative to its gross profit margin. Net profit margin is calculated by dividing net income by sales. The company's net profit margin is 10.4%.
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. 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. ADS' P/S ratio of 1.91 is on the high side. This could be a good sign if the share price increases. 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.
Goldman Sachs (NYSE:GS) has decreased to $93.36 per share, a 1.9% fall. The company is currently trading a volume of 1.2 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. Relative to the industry P/E ratio of 16.98, GS' 13.6 is low. 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. 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: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Commerce Bancshares (Nasdaq:CBSH) is currently trading at $39.21 per share, a 1.8% increase. So far today, the company's volume is 390,329 shares, lighter than yesterday's volume of 722,165 shares. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. The capitalizion ratio of 4.8% is on the low end. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Increasing 1.7%, State Auto (Nasdaq:STFC) is trading at $14.64 per share. So far today, the company's volume is 10,157 shares. This is 0.3 times the current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Margin ratios highlight companies that are worth further examination. The company has a net profit margin of -11.1%. A negative net profit margin means the company spent more money than it made.
When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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. STFC has a P/B ratio of 0.81, which shows that its book value is higher than its share price. Industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than those that don't. 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
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
The Financial sector (XLF) is down 1.1%, outperforming the market overall. Currently, the biggest movers in the sector are:
| Company | Market Cap | Percentage Change |
| Altisource Portfolio Solutions S.A. (Nasdaq:ASPS) | $1.71 billion | -5.9% |
| MBIA (NYSE:MBI) | $1.91 billion | +4.3% |
| Shinhan Financial Group Co., Ltd. (ADR) (NYSE:SHG) | $15.88 billion | -3.9% |
| Alliance Data Systems Corporation (NYSE:ADS) | $6.76 billion | -2.6% |
| Goldman Sachs Group (NYSE:GS) | $46.79 billion | -1.9% |
| Commerce Bancshares, Inc. (Nasdaq:CBSH) | $3.41 billion | +1.8% |
| State Auto Financial (Nasdaq:STFC) | $581 million | +1.7% |
Altisource Portfolio Solutions (Nasdaq:ASPS) is trading at $69.07 per share, down 5.9%. The company's volume for the day so far is 130,386 shares. Volume indicates the level of interest that investors have in a company at its current price. 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. 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. ASPS has a fairly low capitalization ratio of 0%. Low leverage is a significant balance sheet strength, a sign of a less risky investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
MBIA (NYSE:MBI) has increased to a share price of $10.26, a 4.3% rise. This morning, five million shares have been traded, above yesterday's volume of 2.7 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. The company's net profit margin is negative. This shows that the company reported a net loss in the most recent quarter.
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 price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. MBI's P/B ratio of 1.07 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. 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 3.9%, Shinhan Financial Group Co., Ltd (NYSE:SHG) is currently at a share price of $64.37. The company is currently trading a volume of 15,373 shares. This is 0.7 times the average volume over the last three months. 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The dividend yield is calculated by dividing a company's dividends per share by its stock price. The dividend yield for SHG is 2%, which is on the low end. A company with a low dividend yield may be a safer investment in the long run. Simply comparing the level of dividends that two stocks pay does not give a true reflection of which security is more attractive, so investors calculate the dividend yield in order to standardize dividend payments. SEE: Guide To Stock-Picking Strategies: Income Investing
After a decline of 2.6%, Alliance Data (NYSE:ADS) has hit a share price of $130.91. The company's volume is currently 657,521 shares for the day, 1.6 times the average daily volume. In technical analysis, trading volume is used to determine the strength of a market indicator. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. The gross profit margin for ADS is 44.1%. Operating margin can be an important ratio for some investors, particularly those investing in weaker companies or companies in cyclical industries. With an operating profit margin of 28.3%, ADS has a low one relative to its gross profit margin. Net profit margin is calculated by dividing net income by sales. The company's net profit margin is 10.4%.
Goldman Sachs (NYSE:GS) has decreased to $93.36 per share, a 1.9% fall. The company is currently trading a volume of 1.2 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. Relative to the industry P/E ratio of 16.98, GS' 13.6 is low. 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. 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: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Commerce Bancshares (Nasdaq:CBSH) is currently trading at $39.21 per share, a 1.8% increase. So far today, the company's volume is 390,329 shares, lighter than yesterday's volume of 722,165 shares. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. The capitalizion ratio of 4.8% is on the low end. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Increasing 1.7%, State Auto (Nasdaq:STFC) is trading at $14.64 per share. So far today, the company's volume is 10,157 shares. This is 0.3 times the current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Margin ratios highlight companies that are worth further examination. The company has a net profit margin of -11.1%. A negative net profit margin means the company spent more money than it made.
When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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. STFC has a P/B ratio of 0.81, which shows that its book value is higher than its share price. Industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than those that don't. 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
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=d22ac6af481c753fcb1d8f542bacc22f
