Filed Under: ,
Tickers in this Article: WBMD, LXK, HSTM, SANM, VLTR, CLGX, BRKR
The market is having a bad day so far: the Nasdaq has slipped 0.2%; the S&P 500 has decreased 0.5%; and the Dow is trading down 0.6%. The technology sector is a category of stocks relating to the research, development and/or distribution of technologically based goods and services. This sector contains businesses revolving around the manufacturing of electronics, creation of software, computers or products and services relating to information technology. The technology sector offers a wide arrange of products and services for both customers and other businesses. Consumer goods like personal computers, stereos and televisions are continually improved and upgraded, offering the latest technology to all users. Businesses receive information and services from software and database systems, which allow the companies to make strategic business decisions.

The Technology sector (XLK) is down 0.5%, underperforming the market overall. The current biggest movers in the sector are:
CompanyMarket CapPercentage Change
WebMD Health Corp. (Nasdaq:WBMD)$899.8 million-21.9%
Lexmark International Inc (NYSE:LXK)$1.37 billion-15.6%
HealthStream, Inc. (Nasdaq:HSTM)$607.5 million+14.8%
Sanmina-SCI Corporation (Nasdaq:SANM)$585.2 million+14.8%
Volterra Semiconductor Corporation (Nasdaq:VLTR)$639.7 million-13.9%
CoreLogic Inc. (NYSE:CLGX)$2.18 billion+12.2%
Bruker Corporation (Nasdaq:BRKR)$2.22 billion-12.1%
Software Summary: Stock Screener

WebMD (Nasdaq:WBMD) is currently trading at $14 per share, after a steep drop of 21.9%. The company is currently trading a volume of 3.2 million shares. The trading volume for a stock indicates the level of investor interest. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for WBMD is 58.6%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

Shares of Lexmark International (NYSE:LXK) are currently trading at $16.22, a steep decline of 15.6%. With 3.8 million shares changing hands so far today, the company's volume is 1.6 times the average volume over the last three months. 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 allow the investor to make a quick determination as to a company's investment value. 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. LXK has a low P/S ratio of 0.57. A company with a lower P/S ratio is generally considered more attractive, since investors are paying less for each dollar of sales. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.

HealthStream (Nasdaq:HSTM) rose a significant 14.8% to reach $26.71 per share. The company's volume for the day so far is 311,877 shares. This is 2.7 times the current daily average. 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 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. The capitalizion ratio of 0.5% is on the low end. Investors generally consider a company with low debt and high equity levels is a good quality investment. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.

Sanmina-SCI (Nasdaq:SANM) has soared 14.8% to reach a current price of $8.24 per share. So far today, two million shares have changed hands, whereas yesterday, volume was only 565,666 shares. Volume indicates the level of interest that investors have in a company at its current price. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. Compared to the industry average of 9.67, SANM's P/E ratio of 18.1 is quite high. This could mean that the market is expecting big things over the next few months or years. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?

After a precipitous drop of 13.9%, Volterra (Nasdaq:VLTR) is now trading at a share price of $21.72. This morning, the company is trading a volume of 1.3 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. PEG ratio for VLTR is 1.73. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.

CoreLogic (NYSE:CLGX) is currently at $23.30 per share after a dramatic increase of 12.2%. The company's volume for the day so far is three million shares, 2.1 times its average over the past three months. If a stock price moves on high volume, this means that the change is a significant one. 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 provides a way of evaluating whether a stock is relatively cheap or expensive. CLGX's stock is trading for more than its book value with a P/B ratio of 1.93. 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: Using The Price-To-Book Ratio To Evaluate Companies

Taking a 12.1% hit, Bruker (Nasdaq:BRKR) is currently trading at $11.75 per share. The company's volume for the morning is 4.1 million shares. This is 9.9 times the average daily volume. 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. 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. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. BRKR has a debt-equity ratio of 49%, which is on the low side. This shows that the company's assets are financed primarily through equity. 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.

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. 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.

comments powered by Disqus

Trading Center