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Big Movers on the Consumer/Non-Cyclical Sector Today, Including PEET
The market is having a bad day so far: the Nasdaq has declined 1.9%; the S&P 500 has decreased 1.3%; and the Dow has fallen 1.1%.
The Consumer/Non-Cyclical sector (XLP) is down 1%, outperforming the market overall. Currently, the biggest movers in the sector are:
Broker Summary: TD Ameritrade Thinkorswim
Peet's Coffee & Tea (Nasdaq:PEET) has soared 28.9% to reach a current price of $73.68 per share. So far today, the company's volume is two million shares, 10.5 times its current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. PEG ratio for PEET is consistent with the industry average at 2.35. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Dean Foods (NYSE:DF) is up 3.1% to reach a current price of $12.51 per share. The company's volume is currently 5.2 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. DF has a P/S ratio of 0.17, on the low end. 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. 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.
Starbucks (Nasdaq:SBUX) is currently trading at a share price of $50.37, a 3.1% decline. The company's volume is currently 4.5 million shares for the day, 0.8 times its current daily average. Volume indicates the level of interest that investors have in a company at its current price. 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 P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. SBUX has a P/E ratio of 30.0, high compared to the industry average of 20.9. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: How To Find P/E And PEG Ratios
At $52.95, Hain Celestial Group (Nasdaq:HAIN) has slipped 2.6%. This morning, the company is trading a volume of 198,201 shares. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. HAIN's capitalization ratio is 31.3%. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Falling 2.3%, Diageo plc (NYSE:DEO) is currently at a share price of $103.06. At 312,795 shares, the company's volume so far today is consistent with its current three-month average. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. When used consistently and uniformly, the price/earnings to growth (PEG) ratio is an essential tool that adds dimension to the price/earnings ratio, allows comparisons across diverse industries and is always on the lookout for value. DEO's PEG ratio of 2.3 is in line with the industry average. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Currently trading at $93.59 per share, Brown-Forman (NYSE:BF.B) has fallen 2%. The company is trading at a volume of 48,353 shares. This is on pace to fall short of yesterday's volume of 1.2 million shares. The trading volume for a stock indicates the level of investor interest. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. BF.B has a P/B ratio of 6.43 which shows that its share price is higher 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: How Buybacks Warps The Price-To-Book Ratio
After a decline of 1.9%, Coca-Cola FEMSA, S.A.B. de C.V (NYSE:KOF) has hit a share price of $120.86. So far today, the company's volume is 20,131 shares, 0.1 times the average daily volume. 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 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. KOF's dividend yield of 1.6% is fairly low. A company with a low dividend yield may be a safer investment in the long run. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Dividend Yield For The Downturn
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.
The Consumer/Non-Cyclical sector (XLP) is down 1%, outperforming the market overall. Currently, the biggest movers in the sector are:
| Company | Market Cap | Percentage Change |
| Peet\'s Coffee & Tea, Inc. (Nasdaq:PEET) | $757.4 million | +28.9% |
| Dean Foods (NYSE:DF) | $2.24 billion | +3.1% |
| Starbucks (Nasdaq:SBUX) | $39.41 billion | -3.1% |
| The Hain Celestial Group, Inc. (Nasdaq:HAIN) | $2.43 billion | -2.6% |
| Diageo plc (ADR) (NYSE:DEO) | $72.64 billion | -2.3% |
| Brown-Forman (NYSE:BF.B) | $8.2 billion | -2% |
| Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) | $22.75 billion | -1.9% |
Peet's Coffee & Tea (Nasdaq:PEET) has soared 28.9% to reach a current price of $73.68 per share. So far today, the company's volume is two million shares, 10.5 times its current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. PEG ratio for PEET is consistent with the industry average at 2.35. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Dean Foods (NYSE:DF) is up 3.1% to reach a current price of $12.51 per share. The company's volume is currently 5.2 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. DF has a P/S ratio of 0.17, on the low end. 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. 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.
Starbucks (Nasdaq:SBUX) is currently trading at a share price of $50.37, a 3.1% decline. The company's volume is currently 4.5 million shares for the day, 0.8 times its current daily average. Volume indicates the level of interest that investors have in a company at its current price. 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 P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. SBUX has a P/E ratio of 30.0, high compared to the industry average of 20.9. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: How To Find P/E And PEG Ratios
At $52.95, Hain Celestial Group (Nasdaq:HAIN) has slipped 2.6%. This morning, the company is trading a volume of 198,201 shares. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. HAIN's capitalization ratio is 31.3%. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Falling 2.3%, Diageo plc (NYSE:DEO) is currently at a share price of $103.06. At 312,795 shares, the company's volume so far today is consistent with its current three-month average. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. When used consistently and uniformly, the price/earnings to growth (PEG) ratio is an essential tool that adds dimension to the price/earnings ratio, allows comparisons across diverse industries and is always on the lookout for value. DEO's PEG ratio of 2.3 is in line with the industry average. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Currently trading at $93.59 per share, Brown-Forman (NYSE:BF.B) has fallen 2%. The company is trading at a volume of 48,353 shares. This is on pace to fall short of yesterday's volume of 1.2 million shares. The trading volume for a stock indicates the level of investor interest. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. BF.B has a P/B ratio of 6.43 which shows that its share price is higher 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: How Buybacks Warps The Price-To-Book Ratio
After a decline of 1.9%, Coca-Cola FEMSA, S.A.B. de C.V (NYSE:KOF) has hit a share price of $120.86. So far today, the company's volume is 20,131 shares, 0.1 times the average daily volume. 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 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. KOF's dividend yield of 1.6% is fairly low. A company with a low dividend yield may be a safer investment in the long run. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Dividend Yield For The Downturn
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.
by
Investopedia Staff
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