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Big Movers on the Capital Goods Sector Today, Including JOY
The market is doing well so far today. The Nasdaq has risen 0.1%; the S&P 500 is up 0.2%; and the Dow has moved up 0.3%. The capital goods sector is the category of stocks related to the manufacture or distribution of goods. The sector is diverse, containing companies that manufacture machinery used to create capital goods, electrical equipment, aerospace and defense, engineering and construction projects. It is also referred to as the "industrials sector". Performance in the capital goods sector is sensitive to fluctuations in the business cycle. Because it relies heavily on manufacturing, the sector does well when the economy is booming or expanding. As economic conditions worsen, the demand for capital goods drops off, usually lowering the prices of stocks in the sector.
Despite a good day for the overall market so far, the Capital Goods sector (XLI) is down 0.2% and its current biggest movers are:
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URS (NYSE:URS) has risen 5.9% to hit a current price of $37.84 per share. So far today, 527,746 shares have changed hands,. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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-equity (D/E) ratio is a leverage ratio. URS has a D/E ratio of 51%. 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.
Increasing 3.5%, Terex (NYSE:TEX) is trading at $21.94 per share. So far today, 2.6 million shares have changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. TEX's P/E ratio of 16.6 is above the industry average of 10.77. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. 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
Joy Global (NYSE:JOY) is currently trading at $56.84 per share, a 3.2% increase. With 1.3 million shares changing hands so far today, the company's volume is in keeping with its current three-month average. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. 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 is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalization ratio for JOY is 40.1%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
HEICO (NYSE:HEI.A) is trading at $29.66 per share, down 2.9%. This morning, the company's volume is 4,126 shares. This is 0.2 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The dividend yield is calculated by dividing a company's dividends per share by its stock price. HEI.A has a dividend yield of 0.4%, which is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. A higher dividend yield may indicate a risk of a fall in the price of the security, or a cut in the level of dividend payments, either of which would have the effect of dropping future returns. SEE: Guide To Stock-Picking Strategies: Income Investing
HEICO (NYSE:HEI) is currently trading at a share price of $35.89, a 2.8% decline. This morning, 55,704 shares have been traded, while it was 268,691 shares yesterday. 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. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. HEI has a high P/S ratio of 2.54. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
After an increase of 2.4%, Granite Construction (NYSE:GVA) has reached a current price of $25.98. The company is currently trading a volume of 42,460 shares. 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. GVA has a debt ratio of 48.2%, which is fairly low. 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. 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.
James Hardie Industries SE (NYSE:JHX) has fallen 2.4% and is currently trading at $43.92 per share. At 2,005 shares, the company's volume so far today is consistent with its average over the last three months. Volume is an important indicator because it indicates how significant a price shift is. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. 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. The debt-equity ratio of 24% is relatively low. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
Despite a good day for the overall market so far, the Capital Goods sector (XLI) is down 0.2% and its current biggest movers are:
| Company | Market Cap | Percentage Change |
| URS Corp (NYSE:URS) | $2.71 billion | +5.9% |
| Terex Corporation (NYSE:TEX) | $2.34 billion | +3.5% |
| Joy Global Inc. (NYSE:JOY) | $5.83 billion | +3.2% |
| HEICO Corporation (NYSE:HEI.A) | $765.1 million | -2.9% |
| HEICO Corporation (NYSE:HEI) | $1.95 billion | -2.8% |
| Granite Construction Inc. (NYSE:GVA) | $981.6 million | +2.4% |
| James Hardie Industries SE (ADR) (NYSE:JHX) | $3.92 billion | -2.4% |
URS (NYSE:URS) has risen 5.9% to hit a current price of $37.84 per share. So far today, 527,746 shares have changed hands,. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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-equity (D/E) ratio is a leverage ratio. URS has a D/E ratio of 51%. 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.
Increasing 3.5%, Terex (NYSE:TEX) is trading at $21.94 per share. So far today, 2.6 million shares have changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. TEX's P/E ratio of 16.6 is above the industry average of 10.77. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. 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
Joy Global (NYSE:JOY) is currently trading at $56.84 per share, a 3.2% increase. With 1.3 million shares changing hands so far today, the company's volume is in keeping with its current three-month average. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. 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 is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalization ratio for JOY is 40.1%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
HEICO (NYSE:HEI) is currently trading at a share price of $35.89, a 2.8% decline. This morning, 55,704 shares have been traded, while it was 268,691 shares yesterday. 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. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. HEI has a high P/S ratio of 2.54. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
After an increase of 2.4%, Granite Construction (NYSE:GVA) has reached a current price of $25.98. The company is currently trading a volume of 42,460 shares. 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. GVA has a debt ratio of 48.2%, which is fairly low. 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. 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.
James Hardie Industries SE (NYSE:JHX) has fallen 2.4% and is currently trading at $43.92 per share. At 2,005 shares, the company's volume so far today is consistent with its average over the last three months. Volume is an important indicator because it indicates how significant a price shift is. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. 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. The debt-equity ratio of 24% is relatively low. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
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. 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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