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Consumer/Non-Cyclical Sector's Biggest Movers: Companhia de Bebidas das Americas (ADR) and More
The market is having a good day so far: the Nasdaq has moved up 1%; the S&P 500 is up 0.5%; and the Dow has risen 0.6%.
The Consumer/Non-Cyclical sector (XLP) is up 0.2%, underperforming the market overall. The biggest movers in the sector are currently:
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Falling 3.9%, Tyson (NYSE:TSN) is currently at a share price of $14.80. The company's volume for the day so far is seven million shares. Volume indicates the level of interest that investors have in a company at its current price. 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. TSN's capitalization ratio is 26.6%, which is relatively low. 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.
Green Mountain Coffee Roasters (Nasdaq:GMCR) is down 2.6% to reach $21.07 per share. The company's volume for the day so far is 3.3 million shares, 0.3 times its average over the past three months. 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. 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. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). GMCR has a PEG ratio of 0.44, 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.
Boston Beer Co (NYSE:SAM) has risen 2.1% and is currently trading at $112.71 per share. The company's volume for the day so far is 48,857 shares. This is 0.3 times its current daily average. 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. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for SAM is 7.45, indicating that the stock is trading for more 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
Rising 1.8%, Companhia de Bebidas das Americas (NYSE:ABV) is currently trading at $39.16 per share. So far today, 551,677 shares have changed hands, on pace to finish the day below yesterday's volume of 2.6 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. Dividend yield for ABV is 3.2%. 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: Dividend Yield For The Downturn
Estee Lauder (NYSE:EL) is up 1.6% to reach a current price of $53.96 per share. The company is currently trading a volume of 529,170 shares. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. EL's P/S ratio of 2.52 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
Kimberly-Clark (NYSE:KMB) has decreased to $84.03 per share, a 1.5% fall. At 2.1 million shares, the company's volume so far today is 0.7 times the average volume over the last three months. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for KMB is 70.8%, which is relatively 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 rising 1.5%, Blyth (NYSE:BTH) is currently trading at a share price of $37.35. So far today, the company's volume is 76,403 shares. This is 0.4 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift 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 debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. The D/E ratio for BTH is 60%. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
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 Consumer/Non-Cyclical sector (XLP) is up 0.2%, underperforming the market overall. The biggest movers in the sector are currently:
| Company | Market Cap | Percentage Change |
| Tyson Foods (NYSE:TSN) | $5.63 billion | -3.9% |
| Green Mountain Coffee Roasters Inc. (Nasdaq:GMCR) | $3.36 billion | -2.6% |
| Boston Beer Co Inc (NYSE:SAM) | $1.43 billion | +2.1% |
| Companhia de Bebidas das Americas (ADR) (NYSE:ABV) | $119.94 billion | +1.8% |
| Estee Lauder Cos (NYSE:EL) | $20.64 billion | +1.6% |
| Kimberly-Clark (NYSE:KMB) | $33.47 billion | -1.5% |
| Blyth, Inc. (NYSE:BTH) | $633.7 million | +1.5% |
Falling 3.9%, Tyson (NYSE:TSN) is currently at a share price of $14.80. The company's volume for the day so far is seven million shares. Volume indicates the level of interest that investors have in a company at its current price. 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. TSN's capitalization ratio is 26.6%, which is relatively low. 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.
Green Mountain Coffee Roasters (Nasdaq:GMCR) is down 2.6% to reach $21.07 per share. The company's volume for the day so far is 3.3 million shares, 0.3 times its average over the past three months. 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. 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. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). GMCR has a PEG ratio of 0.44, 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.
Boston Beer Co (NYSE:SAM) has risen 2.1% and is currently trading at $112.71 per share. The company's volume for the day so far is 48,857 shares. This is 0.3 times its current daily average. 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. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for SAM is 7.45, indicating that the stock is trading for more 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
Estee Lauder (NYSE:EL) is up 1.6% to reach a current price of $53.96 per share. The company is currently trading a volume of 529,170 shares. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. EL's P/S ratio of 2.52 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
Kimberly-Clark (NYSE:KMB) has decreased to $84.03 per share, a 1.5% fall. At 2.1 million shares, the company's volume so far today is 0.7 times the average volume over the last three months. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for KMB is 70.8%, which is relatively 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 rising 1.5%, Blyth (NYSE:BTH) is currently trading at a share price of $37.35. So far today, the company's volume is 76,403 shares. This is 0.4 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift 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 debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. The D/E ratio for BTH is 60%. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
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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