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Biggest Transportation Sector Movers for June 28, 2012
The market has been slipping so far today. The Nasdaq has declined 1.5%; the S&P 500 has decreased 0.9%; and the Dow is down 1%. The transportation sector is a category of stocks relating to the transportation of goods or customers. It is made up of airlines, railroads and trucking companies. The performance of the transportation sector is sensitive to the price of oil. Because operations revolve around the use of vehicles, fuel prices represent a significant cost to transportation companies. As the price of oil rises, transportation companies will be expected to earn less. Inversely, these companies do well when the cost of fuel decreases.
The Transportation sector (IYT) is currently ahead of the overall market, down only 0.5%, and its biggest movers are currently:
Forex Broker Summary: Forex Capital Markets (FXCM)
Increasing 6.5%, Air (Nasdaq:AIRM) is trading at $95.23 per share. At 168,003 shares, the company's volume so far today is 1.4 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. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. The gross profit margin for AIRM is 40%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. Operating profit margin for AIRM is 13.1%. Net profit margin is a good tool for fundamental analysis and long-term investing but is less useful for technical analysts and short-term traders. Net margin is 7.4%.
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. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. AIRM has a high debt ratio of 70.1%. As such, the company is highly leveraged and not highly liquid. 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.
China Southern Airlines Limited (NYSE:ZNH) is currently trading at a share price of $21.19, a 4% decline. So far today, 10,532 shares 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. Margin ratios highlight companies that are worth further examination. ZNH has a low gross profit margin of 24.5%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. Relative to its gross profit margin, ZNH's operating profit margin of 0% and net profit margin of 6.7% are low.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. ZNH's stock is trading for less than its book value as can be seen from it's P/B value of 0.81. 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. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Rising 2.8%, Golar LNG Limited (Nasdaq:GLNG) is currently trading at $36.35 per share. The company's volume for the day so far is 201,079 share, 0.2 times its average over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The dividend yield is calculated by dividing a company's dividends per share by its stock price. Dividend yield for GLNG is 4%. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Guide To Stock-Picking Strategies: Income Investing
At $40.53, Atlas Air Worldwide Holdings (Nasdaq:AAWW) has slipped 2.2%. The company's volume for the day so far is 26,590 shares. This is less trading activity than there was yesterday. If a stock price makes a big move up or down, volume lets us know the significance of that move. Margin analysis is a great way to understand the profitability of companies. The gross profit margin for AAWW is 44.2%. Value investors, investors in distressed securities, and junk bond investors will probably pay more attention to the operating margin ratio. AAWW's operating profit margin is 14.9%. Net profit margin is a good ratio for determining how a company is performing. The company's net profit margin is 6.7%.
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/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. AAWW has a low P/S ratio of 0.89. Low P/S ratios are more attractive than high ratios because this indicates that an investor is paying less for each dollar of sales. 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.
Hornbeck Offshore Services (NYSE:HOS) has risen 2.2% and is currently trading at $36.53 per share. So far today, the company's volume is 232,134 shares, 0.3 times the average daily volume. The trading volume for a stock indicates the level of investor interest. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. HOS has a gross profit margin of 50.5%. Operating margin is determined by taking operating income (income minus variable expenses) and dividing it by sales. Operating profit margin for HOS is 23.9%. While ratios such as price/earnings (P/E) or price/book value look at the relative attractiveness of a stock, the net profit margin ratio focuses on company performance rather that stock market valuation. Net profit margin for the company is 3%.
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/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). HOS has a P/E ratio of 78.3. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
Currently trading at $34.31 per share, Con Way (NYSE:CNW) has fallen 2%. The company is currently trading a volume of 114,742 shares. Volume is used to evaluate how meaningful the price movement of a stock 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 gross profit margin for CNW is 61.1%. Operating margin for CNW is 4.1% and net margin is 2%, both high relative to its gross margin.
Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. The D/E ratio for CNW is 98%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
After an increase of 1.9%, GulfMark Offshore (NYSE:GLF) has reached a current price of $32.68. At 82,491 shares, the company's volume so far today is 0.3 times its current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. GLF has a gross profit margin of 49.7%. Investors in growth stocks or short-term traders may be less interested in the operating margin ratio. GLF's operating profit margin is 7.4%. Net profit margin comes as close as possible to summing-up in a single figure how effectively managers run the business. The company has a net profit margin of 12.4%.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalizion ratio of 25.4% 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. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. 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 Transportation sector (IYT) is currently ahead of the overall market, down only 0.5%, and its biggest movers are currently:
| Company | Market Cap | Percentage Change |
| Air Methods Corporation (Nasdaq:AIRM) | $1.15 billion | +6.5% |
| China Southern Airlines Limited (ADR) (NYSE:ZNH) | $4.33 billion | -4% |
| Golar LNG Limited (USA) (Nasdaq:GLNG) | $2.84 billion | +2.8% |
| Atlas Air Worldwide Holdings, Inc. (Nasdaq:AAWW) | $1.09 billion | -2.2% |
| Hornbeck Offshore Services, Inc. (NYSE:HOS) | $1.26 billion | +2.2% |
| Con Way Inc (NYSE:CNW) | $1.95 billion | -2% |
| GulfMark Offshore, Inc. (NYSE:GLF) | $860.7 million | +1.9% |
Increasing 6.5%, Air (Nasdaq:AIRM) is trading at $95.23 per share. At 168,003 shares, the company's volume so far today is 1.4 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. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. The gross profit margin for AIRM is 40%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. Operating profit margin for AIRM is 13.1%. Net profit margin is a good tool for fundamental analysis and long-term investing but is less useful for technical analysts and short-term traders. Net margin is 7.4%.
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. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. AIRM has a high debt ratio of 70.1%. As such, the company is highly leveraged and not highly liquid. 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.
China Southern Airlines Limited (NYSE:ZNH) is currently trading at a share price of $21.19, a 4% decline. So far today, 10,532 shares 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. Margin ratios highlight companies that are worth further examination. ZNH has a low gross profit margin of 24.5%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. Relative to its gross profit margin, ZNH's operating profit margin of 0% and net profit margin of 6.7% are low.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. ZNH's stock is trading for less than its book value as can be seen from it's P/B value of 0.81. 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. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Rising 2.8%, Golar LNG Limited (Nasdaq:GLNG) is currently trading at $36.35 per share. The company's volume for the day so far is 201,079 share, 0.2 times its average over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The dividend yield is calculated by dividing a company's dividends per share by its stock price. Dividend yield for GLNG is 4%. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Guide To Stock-Picking Strategies: Income Investing
At $40.53, Atlas Air Worldwide Holdings (Nasdaq:AAWW) has slipped 2.2%. The company's volume for the day so far is 26,590 shares. This is less trading activity than there was yesterday. If a stock price makes a big move up or down, volume lets us know the significance of that move. Margin analysis is a great way to understand the profitability of companies. The gross profit margin for AAWW is 44.2%. Value investors, investors in distressed securities, and junk bond investors will probably pay more attention to the operating margin ratio. AAWW's operating profit margin is 14.9%. Net profit margin is a good ratio for determining how a company is performing. The company's net profit margin is 6.7%.
Hornbeck Offshore Services (NYSE:HOS) has risen 2.2% and is currently trading at $36.53 per share. So far today, the company's volume is 232,134 shares, 0.3 times the average daily volume. The trading volume for a stock indicates the level of investor interest. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. HOS has a gross profit margin of 50.5%. Operating margin is determined by taking operating income (income minus variable expenses) and dividing it by sales. Operating profit margin for HOS is 23.9%. While ratios such as price/earnings (P/E) or price/book value look at the relative attractiveness of a stock, the net profit margin ratio focuses on company performance rather that stock market valuation. Net profit margin for the company is 3%.
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/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). HOS has a P/E ratio of 78.3. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
Currently trading at $34.31 per share, Con Way (NYSE:CNW) has fallen 2%. The company is currently trading a volume of 114,742 shares. Volume is used to evaluate how meaningful the price movement of a stock 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 gross profit margin for CNW is 61.1%. Operating margin for CNW is 4.1% and net margin is 2%, both high relative to its gross margin.
Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. The D/E ratio for CNW is 98%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
After an increase of 1.9%, GulfMark Offshore (NYSE:GLF) has reached a current price of $32.68. At 82,491 shares, the company's volume so far today is 0.3 times its current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. GLF has a gross profit margin of 49.7%. Investors in growth stocks or short-term traders may be less interested in the operating margin ratio. GLF's operating profit margin is 7.4%. Net profit margin comes as close as possible to summing-up in a single figure how effectively managers run the business. The company has a net profit margin of 12.4%.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalizion ratio of 25.4% 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. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. 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
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