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Tickers in this Article: AEO, MMYT, MM, LL, CHTR, MTN, LAMR
The Nasdaq is trading down 0.7%, the S&P 500 is down 0.2% and the Dow has slipped 0.2% on a bad morning for the market.

The Services sector (IYC) is down 0.2%, outperforming the market overall. Currently, the biggest movers in the sector are:
CompanyMarket CapPercentage Change
American (NYSE:AEO)$4.56 billion-8.5%
MakeMyTrip (Nasdaq:MMYT)$619.1 million+7.9%
Millennial Media (NYSE:MM)$1.14 billion+6.1%
Lumber Liquidators Holdings (NYSE:LL)$1.43 billion-3.3%
Charter Communications (Nasdaq:CHTR)$8.01 billion-3.2%
Vail Resorts (NYSE:MTN)$1.95 billion-2.6%
Lamar (Nasdaq:LAMR)$3.41 billion+2.4%
Broker Summary: E-Trade Financial

At $21.20, American (NYSE:AEO) has slipped 8.5%. The company's volume for the day so far is 1.6 million shares, 0.3 times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. 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/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for AEO is 2.82, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: Using The Price-To-Book Ratio To Evaluate Companies

MakeMyTrip (Nasdaq:MMYT) is at $17.97 per share after an increase of 7.9%. So far today, the company's volume is 11,206 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. 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. The P/S ratio for MMYT is 2.92, which is relatively high. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.

Millennial Media (NYSE:MM) is currently trading at $15.90 per share, a 6.1% increase. At 744,210 shares, the company's volume so far today is 0.8 times its current daily average. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt ratio shows the proportion of assets that a company is financing through debt. MM has a debt ratio of 18.1%, which is fairly low. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. 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.

Lumber Liquidators Holdings (NYSE:LL) has decreased to $51.22 per share, a 3.3% fall. The company's volume for the day so far is 209,481 shares. This is a sign that there will be less trading activity than there was yesterday. High volume indicates a lot of investor interest while low volume indicates the opposite. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). PEG ratio for LL is consistent with the industry average at 2.4. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.

Charter Communications (Nasdaq:CHTR) is trading at $76.85 per share, down 3.2%. With 603,082 shares changing hands so far today, the company's volume is 1.1 times 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. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. CHTR has a capitalization ratio of 98.1%, which is on the high end. A high capitalization ratio is not necessarily bad since higher financial leverage can increase the return on a shareholder's investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.

Vail Resorts (NYSE:MTN) has fallen 2.6% and is currently trading at $52.64 per share. The company is currently trading a volume of 153,579 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. MTN has a P/E ratio of 125.7, high compared to the industry average of 27.87. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio

Lamar (Nasdaq:LAMR) has increased to a share price of $37.39, a 2.4% rise. At 1.4 million shares, the company's volume so far today is 0.9 times the average daily volume. 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. 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-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. LAMR's D/E ratio of 261% is on the high side. Companies in capital-intensive industries usually have higher D/E ratios because they need to buy more property, plants, and equipment to operate. 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. 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.

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