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Concho Resources and More Big Movers in Oil and Gas Operations on September 26, 2012
The market is having a bad day so far: the Nasdaq has decreased 0.7%; the S&P 500 is down 0.3%; and the Dow has fallen 0.1%.
The Oil and Gas Operations sector (DIG) is currently lagging behind the overall market, down 1%, and its current biggest movers are:
Broker Summary: Charles Schwab Online Brokerage
Energy (NYSE:EPL) has fallen 5.6% and is currently trading at $19.56 per share. This morning, the company is trading a volume of 301,161 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. EPL has a P/B ratio of 1.47 which shows that its share price is higher than its book value. 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. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Delek US Holdings (NYSE:DK) is down 3% to reach $24.87 per share. With 226,835 shares changing hands so far today, the company's volume is 0.3 times the average volume over the last three months. 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 estimating whether a stock price is too high, reasonable or a bargain investment opportunity. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. DK's dividend yield of 0.6% is fairly low. This may indicate that the company's stock is overpriced. To calculate the dividend yield, divide the level of dividends by the stock price; the higher the yield, the more attractive the security. SEE: Due Diligence On Dividends
InterOil Corporation (NYSE:IOC) is trading at $75.55 per share, down 2.6%. The company is trading at a volume of 473,741 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. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for IOC is a high 2.79. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
After an increase of 2.3%, Solazyme (Nasdaq:SZYM) has reached a current price of $11.62. So far today, the company's volume is 59,151 shares, 0.2 times its 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-equity (D/E) ratio is a leverage ratio. SZYM's debt-equity ratio of 8% is on the low end. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Currently trading at $35.29 per share, Energy (Nasdaq:EXXI) has fallen 2.1%. So far today, the company's volume is 452,329 shares. Volume is an important indicator because it indicates how significant a price 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. EXXI's capitalization ratio is 41.9%. 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 a decline of 1.9%, Suburban Propane Partners (NYSE:SPH) has hit a share price of $40.49. The company's volume for the day so far is 216,134 shares, consistent with its average over the last three months. The trading volume for a stock indicates the level of investor 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 gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. SPH has a high debt ratio of 62.3%. This might mean that the company now has low borrowing capacity, which reduces it's financial flexibility. 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.
Concho Resources (NYSE:CXO) has decreased to $94.22 per share, a 1.9% fall. The company's volume for the day so far is 516,306 shares. This is about the same trading activity as there was yesterday. If a stock price moves on high volume, this means that the change is a significant one. 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/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. PEG ratio for CXO is 1.17. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
The Oil and Gas Operations sector (DIG) is currently lagging behind the overall market, down 1%, and its current biggest movers are:
| Company | Market Cap | Percentage Change |
| Energy (NYSE:EPL) | $809.8 million | -5.6% |
| Delek US Holdings (NYSE:DK) | $1.5 billion | -3% |
| InterOil Corporation (NYSE:IOC) | $3.75 billion | -2.6% |
| Solazyme (Nasdaq:SZYM) | $688.7 million | +2.3% |
| Energy (Nasdaq:EXXI) | $2.86 billion | -2.1% |
| Suburban Propane Partners (NYSE:SPH) | $2.05 billion | -1.9% |
| Concho Resources (NYSE:CXO) | $10.04 billion | -1.9% |
Energy (NYSE:EPL) has fallen 5.6% and is currently trading at $19.56 per share. This morning, the company is trading a volume of 301,161 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. EPL has a P/B ratio of 1.47 which shows that its share price is higher than its book value. 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. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Delek US Holdings (NYSE:DK) is down 3% to reach $24.87 per share. With 226,835 shares changing hands so far today, the company's volume is 0.3 times the average volume over the last three months. 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 estimating whether a stock price is too high, reasonable or a bargain investment opportunity. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. DK's dividend yield of 0.6% is fairly low. This may indicate that the company's stock is overpriced. To calculate the dividend yield, divide the level of dividends by the stock price; the higher the yield, the more attractive the security. SEE: Due Diligence On Dividends
InterOil Corporation (NYSE:IOC) is trading at $75.55 per share, down 2.6%. The company is trading at a volume of 473,741 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. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for IOC is a high 2.79. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
After an increase of 2.3%, Solazyme (Nasdaq:SZYM) has reached a current price of $11.62. So far today, the company's volume is 59,151 shares, 0.2 times its 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-equity (D/E) ratio is a leverage ratio. SZYM's debt-equity ratio of 8% is on the low end. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Currently trading at $35.29 per share, Energy (Nasdaq:EXXI) has fallen 2.1%. So far today, the company's volume is 452,329 shares. Volume is an important indicator because it indicates how significant a price 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. EXXI's capitalization ratio is 41.9%. 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 a decline of 1.9%, Suburban Propane Partners (NYSE:SPH) has hit a share price of $40.49. The company's volume for the day so far is 216,134 shares, consistent with its average over the last three months. The trading volume for a stock indicates the level of investor 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 gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. SPH has a high debt ratio of 62.3%. This might mean that the company now has low borrowing capacity, which reduces it's financial flexibility. 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.
Concho Resources (NYSE:CXO) has decreased to $94.22 per share, a 1.9% fall. The company's volume for the day so far is 516,306 shares. This is about the same trading activity as there was yesterday. If a stock price moves on high volume, this means that the change is a significant one. 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/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. PEG ratio for CXO is 1.17. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
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