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Biggest Semiconductors Sector Movers, Including MLNX
The market has been doing well after the morning's trading. The Nasdaq has climbed 0.1%; the S&P 500 has risen 0.2%; and the Dow is up 0.3%.
Outperforming the market overall, the Semiconductors sector (XLK) is up 0.2% and its biggest movers so far today are:
Broker Summary: Charles Schwab Online Brokerage
After a precipitous drop of 25.5%, EZchip (Nasdaq:EZCH) is now trading at a share price of $29.12. So far today, the company's volume is 2.4 million shares, 7.8 times its current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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). PEG ratio for EZCH is 4.54. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
After a decline of 5.7%, Spreadtrum Communications, Inc (Nasdaq:SPRD) has hit a share price of $19.19. The company's volume for the morning is 752,685 shares. This is 0.7 times the current daily average. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a 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. SPRD's stock is trading for more than its book value with a P/B ratio of 2.96. 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. 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
Tower Semiconductor Ltd (Nasdaq:TSEM) has risen 5.3% and is currently trading at $10.30 per share. This morning, 25,353 shares have been traded, while it was 95,665 shares yesterday. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. 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. TSEM has a low P/S ratio of 0.43. Low P/S ratios can indicate unrecognized value potential - so long as other criteria like high profit margins, low debt levels and growth prospects are in place. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Mellanox (Nasdaq:MLNX) has moved up 3.7% and is currently trading at $109.77 per share. So far today, 334,621 shares have changed hands. 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 ratio is calculated by dividing total liabilities by total assets. The debt ratio for MLNX is a low 18%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. 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.
Falling 3.4%, AIXTRON SE (Nasdaq:AIXG) is currently at a share price of $14.62. At 56,850 shares, the company's volume so far today is 0.3 times its average over the past three months. Volume is used to evaluate how meaningful the price movement of a stock is. 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 price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for AIXG is 1.98, indicating that the stock is trading for more than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. 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
First Solar (Nasdaq:FSLR) is at $21.08 per share after an increase of 1.9%. This morning, the company's volume is 4.6 million shares. This is in line with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. FSLR's P/S ratio of 0.42 is fairly low. The lower the P/S ratio, the more reasonably price the stock, all else being equal. 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.
Rising 1.7%, Cymer (Nasdaq:CYMI) is currently trading at $60.06 per share. At 86,514 shares, the company's volume so far today is on pace to finish the day below yesterday's volume of 313,795 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt ratio shows the proportion of assets that a company is financing through debt. CYMI's debt ratio of 20.6% is on the low side. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
Outperforming the market overall, the Semiconductors sector (XLK) is up 0.2% and its biggest movers so far today are:
| Company | Market Cap | Percentage Change |
| EZchip Semiconductor Ltd. (Nasdaq:EZCH) | $1.09 billion | -25.5% |
| Spreadtrum Communications, Inc (ADR) (Nasdaq:SPRD) | $956.3 million | -5.7% |
| Tower Semiconductor Ltd. (USA) (Nasdaq:TSEM) | $3.15 billion | +5.3% |
| Mellanox Technologies, Ltd. (Nasdaq:MLNX) | $4.4 billion | +3.7% |
| AIXTRON SE (ADR) (Nasdaq:AIXG) | $1.53 billion | -3.4% |
| First Solar (Nasdaq:FSLR) | $1.8 billion | +1.9% |
| Cymer, Inc. (Nasdaq:CYMI) | $1.83 billion | +1.7% |
After a precipitous drop of 25.5%, EZchip (Nasdaq:EZCH) is now trading at a share price of $29.12. So far today, the company's volume is 2.4 million shares, 7.8 times its current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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). PEG ratio for EZCH is 4.54. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
After a decline of 5.7%, Spreadtrum Communications, Inc (Nasdaq:SPRD) has hit a share price of $19.19. The company's volume for the morning is 752,685 shares. This is 0.7 times the current daily average. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a 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. SPRD's stock is trading for more than its book value with a P/B ratio of 2.96. 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. 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
Tower Semiconductor Ltd (Nasdaq:TSEM) has risen 5.3% and is currently trading at $10.30 per share. This morning, 25,353 shares have been traded, while it was 95,665 shares yesterday. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. 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. TSEM has a low P/S ratio of 0.43. Low P/S ratios can indicate unrecognized value potential - so long as other criteria like high profit margins, low debt levels and growth prospects are in place. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Falling 3.4%, AIXTRON SE (Nasdaq:AIXG) is currently at a share price of $14.62. At 56,850 shares, the company's volume so far today is 0.3 times its average over the past three months. Volume is used to evaluate how meaningful the price movement of a stock is. 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 price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for AIXG is 1.98, indicating that the stock is trading for more than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. 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
First Solar (Nasdaq:FSLR) is at $21.08 per share after an increase of 1.9%. This morning, the company's volume is 4.6 million shares. This is in line with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. FSLR's P/S ratio of 0.42 is fairly low. The lower the P/S ratio, the more reasonably price the stock, all else being equal. 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.
Rising 1.7%, Cymer (Nasdaq:CYMI) is currently trading at $60.06 per share. At 86,514 shares, the company's volume so far today is on pace to finish the day below yesterday's volume of 313,795 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt ratio shows the proportion of assets that a company is financing through debt. CYMI's debt ratio of 20.6% is on the low side. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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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