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Canadian National Railway and Other Transportation Stocks Making Big Moves on September 11, 2012
On a good day for the market, the Nasdaq is trading up 0.3%, the S&P 500 is up 0.6% and the Dow has increased 0.7%. 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 up 0.8%, outperforming the market overall. The biggest movers in the sector so far are:
Forex Broker Summary: Forex Capital Markets (FXCM)
After an increase of 6%, American Railcar Industries (Nasdaq:ARII) has reached a current price of $32.51. So far today, 80,408 shares have changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. ARII's capitalization ratio is 45.1%. 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.
Hornbeck Offshore Services (NYSE:HOS) has risen 2.1% and is currently trading at $39.49 per share. At 168,497 shares, the company's volume so far today is 0.4 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. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. HOS' P/B ratio of 1.28 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. 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
Genesee & Wyoming (NYSE:GWR) has moved up 1.5% and is currently trading at $66.48 per share. So far today, 65,924 shares of the company's stock have changed hands. This is on pace to reach yesterday's trading volume of 153,916 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. The P/S ratio for GWR is a high 3.42. 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.
Norfolk Southern (NYSE:NSC) is up 1.5% to reach a current price of $73.50 per share. With 505,466 shares changing hands so far today, the company's volume is 0.3 times its current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. 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. NSC has a high debt ratio of 66.5%. As such, the company is highly leveraged and not highly liquid. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Canadian National Railway (NYSE:CNI) is currently trading at $93.84 per share, a 1.5% increase. This morning, the company is trading a volume of 193,858 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 debt-equity (D/E) ratio is a leverage ratio. CNI has a D/E ratio of 61%. 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.
Seacor Holdings (NYSE:CKH) is at $87.32 per share after an increase of 1.4%. So far today, the company's volume is 11,263 shares, 0.2 times the average daily volume. The trading volume for a stock indicates the level of investor interest. 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. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. Compared to the industry average of 13.24, CKH's P/E ratio of 26.4 is quite high. This could mean that the market is expecting big things over the next few months or years. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Profit With The Power Of Price-To-Earnings
Southwest (NYSE:LUV) is trading at $9.03 per share, down 1.3%. So far today, the company's volume is 2.8 million shares. This is on pace to reach yesterday's trading volume of 5.7 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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 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 capitalization ratio for LUV is 30.6%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. 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 up 0.8%, outperforming the market overall. The biggest movers in the sector so far are:
| Company | Market Cap | Percentage Change |
| American Railcar Industries (Nasdaq:ARII) | $655.1 million | +6% |
| Hornbeck Offshore Services (NYSE:HOS) | $1.37 billion | +2.1% |
| Genesee & Wyoming (NYSE:GWR) | $2.81 billion | +1.5% |
| Norfolk Southern (NYSE:NSC) | $23.13 billion | +1.5% |
| Canadian National Railway (NYSE:CNI) | $40.24 billion | +1.5% |
| Seacor Holdings (NYSE:CKH) | $1.81 billion | +1.4% |
| Southwest (NYSE:LUV) | $6.8 billion | -1.3% |
After an increase of 6%, American Railcar Industries (Nasdaq:ARII) has reached a current price of $32.51. So far today, 80,408 shares have changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. ARII's capitalization ratio is 45.1%. 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.
Hornbeck Offshore Services (NYSE:HOS) has risen 2.1% and is currently trading at $39.49 per share. At 168,497 shares, the company's volume so far today is 0.4 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. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. HOS' P/B ratio of 1.28 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. 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
Genesee & Wyoming (NYSE:GWR) has moved up 1.5% and is currently trading at $66.48 per share. So far today, 65,924 shares of the company's stock have changed hands. This is on pace to reach yesterday's trading volume of 153,916 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. The P/S ratio for GWR is a high 3.42. 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.
Canadian National Railway (NYSE:CNI) is currently trading at $93.84 per share, a 1.5% increase. This morning, the company is trading a volume of 193,858 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 debt-equity (D/E) ratio is a leverage ratio. CNI has a D/E ratio of 61%. 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.
Seacor Holdings (NYSE:CKH) is at $87.32 per share after an increase of 1.4%. So far today, the company's volume is 11,263 shares, 0.2 times the average daily volume. The trading volume for a stock indicates the level of investor interest. 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. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. Compared to the industry average of 13.24, CKH's P/E ratio of 26.4 is quite high. This could mean that the market is expecting big things over the next few months or years. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Profit With The Power Of Price-To-Earnings
Southwest (NYSE:LUV) is trading at $9.03 per share, down 1.3%. So far today, the company's volume is 2.8 million shares. This is on pace to reach yesterday's trading volume of 5.7 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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 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 capitalization ratio for LUV is 30.6%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. 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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