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Tickers in this Article: EXPR, PCS, ARUN, CMG, LL, LQDT, Z
Currently, the Nasdaq has risen 0.4%, the S&P 500 is trading up 0.1% and the Dow has slipped 0.2%.

These are the biggest movers in the Services sector (IYC) (+0.1%):
CompanyMarket CapPercentage Change
Express (NYSE:EXPR)$1.3 billion-21.2%
MetroPCS Communications (NYSE:PCS)$4.19 billion+20.7%
Aruba Networks (Nasdaq:ARUN)$2.51 billion-6.5%
Chipotle Mexica (NYSE:CMG)$10.02 billion-5.7%
Lumber Liquidators Holdings (NYSE:LL)$1.38 billion-5.2%
Liquidity Services (Nasdaq:LQDT)$1.54 billion-4.7%
Zillow (Nasdaq:Z)$1.36 billion-4.5%
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Shares of Express (NYSE:EXPR) are currently trading at $11.83, a steep decline of 21.2%. So far today, 6.8 million shares of the company's stock have changed hands. Yesterday, volume was only 1.5 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. EXPR has a low P/S ratio of 0.66. The lower the P/S ratio, the more reasonably price the stock, all else being equal. 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.

MetroPCS Communications (NYSE:PCS) is currently at $13.91 per share after a dramatic increase of 20.7%. At 14.3 million shares, the company's volume so far today is 1.4 times the average daily volume. The trading volume for a stock indicates the level of investor interest. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. PCS' debt ratio of 68% is fairly high. As such, the company is highly leveraged and not highly liquid. 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.

After a decline of 6.5%, Aruba Networks (Nasdaq:ARUN) has hit a share price of $20.93. The company's volume for the day so far is 3.7 million shares. If a stock price makes a big move up or down, volume lets us know the significance of that 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. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. ARUN's P/B ratio of 5.12 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. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: How Buybacks Warps The Price-To-Book Ratio

Chipotle Mexica (NYSE:CMG) is trading at $298.24 per share, down 5.7%. The company's volume is currently 1.5 million shares for the day, 2.4 times the average volume over the last three months. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. CMG has a P/E ratio of 38.6, high compared to the industry average of 20.61. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Understanding The P/E Ratio

Currently trading at $48.56 per share, Lumber Liquidators Holdings (NYSE:LL) has fallen 5.2%. The company's volume for the day so far is 1.6 million shares. This is greater than yesterday's volume of 469,350 shares. If a stock price moves on high volume, this means that the change is a significant one. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The assumption with high price/earnings stocks (generally of the growth variety) is that investors are willing to buy at a high price because they believe that the stock has significant growth potential, and the price/earnings to growth (PEG) ratio helps investors determine the degree of reliability of that growth assumption. LL has a PEG ratio of 2.3, which is consistent 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.

Liquidity Services (Nasdaq:LQDT) has fallen 4.7% and is currently trading at $47.21 per share. So far today, the company's volume is 394,566 shares, 0.7 times its current daily average. Volume indicates the level of interest that investors have in a company at its current price. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. LQDT has a low capitalization ratio of 11.9%. Investors generally consider a company with low debt and high equity levels is a good quality investment. 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.

Zillow (Nasdaq:Z) is currently trading at a share price of $39, a 4.5% decline. So far today, 3.2 million shares have changed hands. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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 Z is a high 12.58. 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.

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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