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Consumer Cyclical Sector's Biggest Movers for July 13, 2012
On a good day for the market, the Nasdaq has risen 1%, the S&P 500 is up 1.3% and the Dow has moved up 1.3%. The consumer cyclical sector is a category of stocks that relies heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment and retail. The category can be further divided into durable and non-durable sections. Durable cyclicals include physical goods such as hardware or vehicles, while non-durables represent items like movies or hotel services. The performance of consumer cyclicals is highly related to the state of the economy. They represent goods and services that are not considered necessities, but luxurious purchases. During contractions or recessions, people have less disposable income to spend on consumer cyclicals. When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.
Outperforming the market overall, the Consumer Cyclical sector (XLY) is up 1.2% and its biggest movers so far today are:
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Slipping 4.6%, Titan International (NYSE:TWI) is currently trading at $22.98 per share. The company's volume is currently 675,025 shares for the day, 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. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. TWI has a low gross profit margin of 18.9%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. TWI has an operating profit margin of 12.7% and a net profit margin of 5.8%, both low compared to its gross profit margin.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The debt ratio shows the proportion of assets that a company is financing through debt. TWI's debt ratio is 59.8%. 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.
Oxford Industries (NYSE:OXM) has increased to a share price of $45.77, a 3.7% rise. So far today, 51,264 shares of the company's stock have changed hands. Yesterday, 152,852 shares changed hands. High volume indicates a lot of investor interest while low volume indicates the opposite. Margin analysis is a great way to understand the profitability of companies. The gross profit margin for OXM is 58.1%. A high net profit margin indicates a highly profitable company, and a low profit margin indicates the opposite. Net margin is 3.7%, which is high relative to its gross profit margin. A company with a high profit margin has a greater capability to maintain strong earnings during a recession than does a company with a low profit margin, providing investors with a greater margin of safety. As with other margin ratios, the operating margin is a percentage, which allows for more standardized comparison across time and among different companies of different sizes. Operating profit margin for OXM is 14.2%.
A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. OXM has a D/E ratio of 51%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Polo Ralph Lauren (NYSE:RL) has increased to a share price of $141.32, a 3.3% rise. The company's volume is currently 429,759 shares for the day, 0.3 times the average daily volume. Volume indicates the level of interest that investors have in a company at its current price. 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 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 capitalizion ratio of 7% is on the low end. Low leverage is a significant balance sheet strength, a sign of a less risky investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
PVH (NYSE:PVH) is at $76.68 per share after an increase of 3%. This morning, the company is trading a volume of 380,611 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. PVH has a gross profit margin of 51.8%. The operating profit margin is a rough measure of the operating leverage a company can achieve in the conduct of the operational part of its business. PVH has an operating profit margin of 10.7%. Net profit margin compares net income with sales. Net margin is 5.9%.
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. The dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. PVH has a low dividend yield of 0.2%. This may indicate that the company's stock is overpriced. A stock's dividend yield depends on the nature of a company's business, its posture in the marketplace (value or growth oriented), its earnings and cash flow, and its dividend policy. SEE: Investment Valuation Ratios: Dividend Yield
Columbia Sportswear (Nasdaq:COLM) has moved up 2.9% and is currently trading at $54.13 per share. The company's volume for the day so far is 31,043 share, 0.2 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. The gross profit margin for COLM is 45.9%. The operating profit margin indicates how much EBIT is generated per dollar of sales. COLM's operating profit margin is 1.6%. Net profit margin is calculated by dividing net income by sales. The company's net profit margin is 5.6%.
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 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 a good value when purchasing a stock with a high price/earnings ratio (P/E ratio). COLM's PEG ratio of 1.43 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.
Rising 2.7%, Genuine (NYSE:GPC) is currently trading at $61.15 per share. The company's volume for the day so far is 325,350 shares. This is below yesterday's volume of 1.6 million 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. Margin ratios highlight companies that are worth further examination. GPC's gross profit margin is 29%. GPC's operating margin of 7.2% and net margin of 4.6% are low relative to its gross margin.
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/book value ratio is calculated by dividing the current stock price by the company's book value per share. GPC's stock is trading for more than its book value with a P/B ratio of 3.31. 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
Fossil (Nasdaq:FOSL) is currently trading at $68 per share, a 2.5% increase. At 417,918 shares, the company's volume so far today is 0.3 times its current daily average. 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 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. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. FOSL has a gross profit margin of 58.1%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. FOSL has an operating profit margin of 14.1%. Net profit margins are those generated from all phases of a business, including taxes. Net profit margin for the company is 11.3%.
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. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. Relative to the industry P/E ratio of 20.68, FOSL's 13.9 is low. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Investment Valuation Ratios: Price/Earnings Ratio
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. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
Outperforming the market overall, the Consumer Cyclical sector (XLY) is up 1.2% and its biggest movers so far today are:
| Company | Market Cap | Percentage Change |
| Titan International, Inc. (NYSE:TWI) | $1.02 billion | -4.6% |
| Oxford Industries, Inc. (NYSE:OXM) | $729.9 million | +3.7% |
| Polo Ralph Lauren (NYSE:RL) | $8.29 billion | +3.3% |
| PVH Corp (NYSE:PVH) | $5.24 billion | +3% |
| Columbia Sportswear Company (Nasdaq:COLM) | $1.78 billion | +2.9% |
| Genuine Parts (NYSE:GPC) | $9.29 billion | +2.7% |
| Fossil, Inc. (Nasdaq:FOSL) | $4.11 billion | +2.5% |
Slipping 4.6%, Titan International (NYSE:TWI) is currently trading at $22.98 per share. The company's volume is currently 675,025 shares for the day, 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. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. TWI has a low gross profit margin of 18.9%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. TWI has an operating profit margin of 12.7% and a net profit margin of 5.8%, both low compared to its gross profit margin.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The debt ratio shows the proportion of assets that a company is financing through debt. TWI's debt ratio is 59.8%. 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.
Oxford Industries (NYSE:OXM) has increased to a share price of $45.77, a 3.7% rise. So far today, 51,264 shares of the company's stock have changed hands. Yesterday, 152,852 shares changed hands. High volume indicates a lot of investor interest while low volume indicates the opposite. Margin analysis is a great way to understand the profitability of companies. The gross profit margin for OXM is 58.1%. A high net profit margin indicates a highly profitable company, and a low profit margin indicates the opposite. Net margin is 3.7%, which is high relative to its gross profit margin. A company with a high profit margin has a greater capability to maintain strong earnings during a recession than does a company with a low profit margin, providing investors with a greater margin of safety. As with other margin ratios, the operating margin is a percentage, which allows for more standardized comparison across time and among different companies of different sizes. Operating profit margin for OXM is 14.2%.
A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. OXM has a D/E ratio of 51%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Polo Ralph Lauren (NYSE:RL) has increased to a share price of $141.32, a 3.3% rise. The company's volume is currently 429,759 shares for the day, 0.3 times the average daily volume. Volume indicates the level of interest that investors have in a company at its current price. 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 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 capitalizion ratio of 7% is on the low end. Low leverage is a significant balance sheet strength, a sign of a less risky investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
PVH (NYSE:PVH) is at $76.68 per share after an increase of 3%. This morning, the company is trading a volume of 380,611 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. PVH has a gross profit margin of 51.8%. The operating profit margin is a rough measure of the operating leverage a company can achieve in the conduct of the operational part of its business. PVH has an operating profit margin of 10.7%. Net profit margin compares net income with sales. Net margin is 5.9%.
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. The dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. PVH has a low dividend yield of 0.2%. This may indicate that the company's stock is overpriced. A stock's dividend yield depends on the nature of a company's business, its posture in the marketplace (value or growth oriented), its earnings and cash flow, and its dividend policy. SEE: Investment Valuation Ratios: Dividend Yield
Columbia Sportswear (Nasdaq:COLM) has moved up 2.9% and is currently trading at $54.13 per share. The company's volume for the day so far is 31,043 share, 0.2 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. The gross profit margin for COLM is 45.9%. The operating profit margin indicates how much EBIT is generated per dollar of sales. COLM's operating profit margin is 1.6%. Net profit margin is calculated by dividing net income by sales. The company's net profit margin is 5.6%.
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 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 a good value when purchasing a stock with a high price/earnings ratio (P/E ratio). COLM's PEG ratio of 1.43 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.
Rising 2.7%, Genuine (NYSE:GPC) is currently trading at $61.15 per share. The company's volume for the day so far is 325,350 shares. This is below yesterday's volume of 1.6 million 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. Margin ratios highlight companies that are worth further examination. GPC's gross profit margin is 29%. GPC's operating margin of 7.2% and net margin of 4.6% are low relative to its gross margin.
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/book value ratio is calculated by dividing the current stock price by the company's book value per share. GPC's stock is trading for more than its book value with a P/B ratio of 3.31. 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. 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: Investment Valuation Ratios: Price/Book Value Ratio
Fossil (Nasdaq:FOSL) is currently trading at $68 per share, a 2.5% increase. At 417,918 shares, the company's volume so far today is 0.3 times its current daily average. 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 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. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. FOSL has a gross profit margin of 58.1%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. FOSL has an operating profit margin of 14.1%. Net profit margins are those generated from all phases of a business, including taxes. Net profit margin for the company is 11.3%.
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. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. Relative to the industry P/E ratio of 20.68, FOSL's 13.9 is low. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Investment Valuation Ratios: Price/Earnings Ratio
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. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
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