Filed Under: ,
Tickers in this Article: APAGF, CRZO, AREX, SNP, TSO, INT, HFC
The market is on the rise this morning. The Nasdaq has risen 1%; the S&P 500 is trading up 0.5%; and the Dow has moved up 0.6%.

Underperforming the market overall, the Oil and Gas Operations sector (DIG) is up 0.8%, and these are its current biggest movers:
CompanyMarket CapPercentage Change
Apco Oil & Gas International Inc. (Nasdaq:APAGF)$570.9 million-4.3%
Carrizo Oil & Gas, Inc. (Nasdaq:CRZO)$976.5 million+3.9%
Approach Resources Inc. (Nasdaq:AREX)$907.2 million+3.7%
China Petroleum & Chemical Corp. (ADR) (NYSE:SNP)$79.28 billion+3.3%
Tesoro (NYSE:TSO)$4.44 billion+3.1%
World Fuel Services Corporation (NYSE:INT)$2.49 billion+2.9%
HollyFrontier Corp (NYSE:HFC)$7.94 billion+2.8%
Forex Broker Summary: UFXMarkets

Apco Oil & Gas International (Nasdaq:APAGF) is down 4.3% to reach $18.55 per share. The company's volume is currently 9,712 shares for the day, 0.4 times the current daily average. A stock's volume conveys how excited investors are about it. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. APAGF's debt ratio of 12.1% is on the low side. 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.

Rising 3.9%, Carrizo Oil & Gas (Nasdaq:CRZO) is currently trading at $25.63 per share. So far today, 403,516 shares have changed hands. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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/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. CRZO has a high P/S ratio of 4.69. This could be a good sign if the share price increases. 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.

Approach Resources (Nasdaq:AREX) has moved up 3.7% and is currently trading at $28.08 per share. The company's volume is currently 147,933 shares for the day, 0.3 times its current three-month average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that 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. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. AREX has a fairly low capitalization ratio of 15.3%. Investors generally consider a company with low debt and high equity levels is a good quality investment. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.

After an increase of 3.3%, China Petroleum & Chemical Corp (NYSE:SNP) has reached a current price of $94.45. The company is trading at a volume of 50,123 shares. 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 price/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. PEG ratio for SNP is consistent with the industry average at 2.18. 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.

Increasing 3.1%, Tesoro (NYSE:TSO) is trading at $32.77 per share. The company's volume is currently 1.7 million shares for the day, 0.4 times the average daily volume. Volume indicates the level of interest that investors have in a company at its current price. 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 is one of the more common methods of determining whether a stock is fairly valued. TSO's stock is trading for more than its book value with a P/B ratio of 1.11. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. 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: How Buybacks Warps The Price-To-Book Ratio

World Fuel (NYSE:INT) has risen 2.9% to hit a current price of $35.60 per share. The company is currently trading a volume of 181,639 shares. Volume is used to evaluate how meaningful the price movement of a stock is. 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 dividend yield is calculated by dividing a company's dividends per share by its stock price. INT's dividend yield of 0.4% is fairly low. A company with a low dividend yield may be a safer investment in the long run. It is important to remember that while a higher dividend yield is more attractive, all else being equal, a higher dividend yield can also indicate greater perceived risk. SEE: Due Diligence On Dividends

HollyFrontier (NYSE:HFC) has risen 2.8% and is currently trading at $39.49 per share. The company's volume for the day so far is 1.2 million shares, 0.4 times the current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. HFC's P/E ratio of 6.2 is under the industry average of 36.49. A low P/E ratio may indicate that the market expects relatively slower earnings growth. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?

The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.

comments powered by Disqus

Trading Center