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Tickers in this Article: EXPR, CHS, LONG, YELP, CHA, AEO, RUE
The Nasdaq is down 0.2%, the S&P 500 has fallen 0.4% and the Dow has decreased 0.5%, marking a bad morning for the market.

The Services sector (IYC) is up 0.1% on a bad day for the market overall. The biggest movers in the sector are currently:
CompanyMarket CapPercentage Change
Express (NYSE:EXPR)$1.51 billion-10.1%
Chico\'s FAS (NYSE:CHS)$2.86 billion+6.6%
eLong, Inc (Nasdaq:LONG)$546.6 million-6.6%
Yelp (NYSE:YELP)$1.16 billion-6.4%
China Telecom Corporation Limited (NYSE:CHA)$41.73 billion+6.2%
American (NYSE:AEO)$4.08 billion+6.1%
rue21 (Nasdaq:RUE)$669 million+3.8%
Broker Summary: Fidelity Online Brokerage

Taking a 10.1% hit, Express (NYSE:EXPR) is currently trading at $15.20 per share. So far today, 3.6 million shares have changed hands. This is 2.9 times the current three-month average. Volume is used to evaluate how meaningful the price movement of a stock 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 is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. EXPR has a capitalization ratio of 37.8%. 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.

Chico's FAS (NYSE:CHS) has moved up 6.6% and is currently trading at $18.21 per share. So far today, the company's volume is 7.8 million shares, 3.1 times its current daily average. If a stock price moves on high volume, this means that the change is a significant one. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The dividend yield is calculated by dividing a company's dividends per share by its stock price. CHS' dividend yield of 1.2% is fairly low. A company with a low dividend yield may be a safer investment in the long run. 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: Due Diligence On Dividends

eLong, Inc (Nasdaq:LONG) has decreased to $14.90 per share, a 6.6% fall. The company is currently trading a volume of 32,122 shares. A stock's volume conveys how excited investors are about it. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for LONG is 1.6, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Currently trading at $17.78 per share, Yelp (NYSE:YELP) has fallen 6.4%. At 628,595 shares, the company's volume so far today is on pace to reach yesterday's volume of 1.1 million 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. 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 debt ratio shows the proportion of assets that a company is financing through debt. YELP's debt ratio of 8.6% is on the low side. 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. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

China Telecom Corporation Limited (NYSE:CHA) is currently trading at $54.78 per share, a 6.2% increase. The company is currently trading a volume of 578,595 shares. This is 9.7 times the average volume over the last three months. Volume indicates the level of interest that investors have in a company at its current price. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. The dividend yield for CHA is 1.9%, which is on the low end. If you are an income investor, this stock may not be attractive to you. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Dividend Yield For The Downturn

American (NYSE:AEO) has risen 6.1% to hit a current price of $22.11 per share. The company's volume is currently 7.1 million shares for the day, 1.7 times the current daily average. 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. 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. AEO's PEG ratio of 1.93 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.

Increasing 3.8%, rue21 (Nasdaq:RUE) is trading at $28.33 per share. This morning, the company is trading a volume of 133,662 shares. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. RUE's P/B ratio of 4.32 shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. 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

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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