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CNOOC Limited and Other Big Movers In Oil and Gas Operations on September 11, 2012
The morning has been good for the market. The Nasdaq is trading up 0.3%; the S&P 500 has moved up 0.6%; and the Dow has increased 0.7%.
Outperforming the market overall, the Oil and Gas Operations sector (DIG) is up 2.2% and its biggest movers so far today are:
Forex Broker Summary: Forex Capital Markets (FXCM)
Range (NYSE:RRC) has risen 5.4% to hit a current price of $71.39 per share. The company's volume is currently 1.4 million shares for the day, 1.1 times its current daily average. 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 price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for RRC is a high 7.67. 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.
Cabot Oil & Gas (NYSE:COG) has risen 5.2% and is currently trading at $44.28 per share. So far today, the company's volume is 1.9 million 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. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. COG's debt ratio is 51.7%. 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.
CNOOC Limited (NYSE:CEO) has increased to a share price of $191, a 4.1% rise. The company's volume for the day so far is 84,953 shares, in keeping with its current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. CEO has a debt-equity ratio of 19%, which is on the low side. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After a decline of 3.1%, Venoco (NYSE:VQ) has hit a share price of $11.50. The company's volume for the day so far is 428,542 shares. This is on pace to reach yesterday's trading volume of 785,856 shares. 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 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 VQ is 91.5%, which is fairly high. A company considered too highly leveraged (too much debt) may find its freedom of action restricted by its creditors and/or have its profitability hurt by high interest costs. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
After rising 2.9%, SM (NYSE:SM) is currently trading at a share price of $53.63. The company's volume is currently 221,488 shares for the day, 0.3 times the 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 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 dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. The dividend yield for SM is 0.2%, which is on the low end. If you are an income investor, this stock may not be attractive to you. For income-oriented investors such as retirees, a stock with a high dividend yield may be more attractive than a stock with a low dividend yield. SEE: Due Diligence On Dividends
Whiting (NYSE:WLL) has moved up 2.9% and is currently trading at $50 per share. The company's volume for the day so far is 583,045 shares. Volume is used to evaluate how meaningful the price movement of a stock is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/earnings to growth (PEG) ratio compares a company's P/E ratio to its earnings-per-share growth rate, which tells you whether or not you are getting a good value when purchasing a stock with a high price/earnings ratio (P/E ratio). PEG ratio for WLL is 1.16. 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.
Hess (NYSE:HES) is at $54.62 per share after an increase of 2.8%. So far today, the company's volume is 1.4 million shares, in keeping with the average volume over the past three months. 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 estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. HES' P/B ratio of 0.94 indicates that its share price is lower than its book value. This is due to one of two possibilities: that the stock is being unfairly or incorrectly undervalued by investors because of some transitory circumstance and represents an attractive buying opportunity at a bargain price or that the market's low opinion and valuation of the company are correct, at least over the foreseeable future. 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
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
Outperforming the market overall, the Oil and Gas Operations sector (DIG) is up 2.2% and its biggest movers so far today are:
| Company | Market Cap | Percentage Change |
| Range (NYSE:RRC) | $11.01 billion | +5.4% |
| Cabot Oil & Gas (NYSE:COG) | $8.84 billion | +5.2% |
| CNOOC Limited (NYSE:CEO) | $81.88 billion | +4.1% |
| Venoco (NYSE:VQ) | $729.6 million | -3.1% |
| SM (NYSE:SM) | $3.39 billion | +2.9% |
| Whiting (NYSE:WLL) | $5.72 billion | +2.9% |
| Hess (NYSE:HES) | $18.14 billion | +2.8% |
Range (NYSE:RRC) has risen 5.4% to hit a current price of $71.39 per share. The company's volume is currently 1.4 million shares for the day, 1.1 times its current daily average. 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 price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for RRC is a high 7.67. 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.
Cabot Oil & Gas (NYSE:COG) has risen 5.2% and is currently trading at $44.28 per share. So far today, the company's volume is 1.9 million 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. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. COG's debt ratio is 51.7%. 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.
CNOOC Limited (NYSE:CEO) has increased to a share price of $191, a 4.1% rise. The company's volume for the day so far is 84,953 shares, in keeping with its current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. CEO has a debt-equity ratio of 19%, which is on the low side. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After a decline of 3.1%, Venoco (NYSE:VQ) has hit a share price of $11.50. The company's volume for the day so far is 428,542 shares. This is on pace to reach yesterday's trading volume of 785,856 shares. 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 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 VQ is 91.5%, which is fairly high. A company considered too highly leveraged (too much debt) may find its freedom of action restricted by its creditors and/or have its profitability hurt by high interest costs. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
After rising 2.9%, SM (NYSE:SM) is currently trading at a share price of $53.63. The company's volume is currently 221,488 shares for the day, 0.3 times the 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 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 dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. The dividend yield for SM is 0.2%, which is on the low end. If you are an income investor, this stock may not be attractive to you. For income-oriented investors such as retirees, a stock with a high dividend yield may be more attractive than a stock with a low dividend yield. SEE: Due Diligence On Dividends
Whiting (NYSE:WLL) has moved up 2.9% and is currently trading at $50 per share. The company's volume for the day so far is 583,045 shares. Volume is used to evaluate how meaningful the price movement of a stock is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/earnings to growth (PEG) ratio compares a company's P/E ratio to its earnings-per-share growth rate, which tells you whether or not you are getting a good value when purchasing a stock with a high price/earnings ratio (P/E ratio). PEG ratio for WLL is 1.16. 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.
Hess (NYSE:HES) is at $54.62 per share after an increase of 2.8%. So far today, the company's volume is 1.4 million shares, in keeping with the average volume over the past three months. 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 estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. HES' P/B ratio of 0.94 indicates that its share price is lower than its book value. This is due to one of two possibilities: that the stock is being unfairly or incorrectly undervalued by investors because of some transitory circumstance and represents an attractive buying opportunity at a bargain price or that the market's low opinion and valuation of the company are correct, at least over the foreseeable future. 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
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
by
Investopedia Staff
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