Free Annual Reports
Consumer/Non-Cyclical Sector's Biggest Movers for June 26, 2012
Currently, the Nasdaq has climbed 0.2%, the S&P 500 has moved up 0.1% and the Dow is down 0.1%.
The Consumer/Non-Cyclical sector (XLP) remains relatively unchanged so far today and here are its biggest movers:
Broker Summary: Fidelity Online Brokerage
Falling 4.7%, Pilgrim's (NYSE:PPC) is currently at a share price of $7.17. So far today, the company's volume is 207,871 shares. Yesterday, 921,984 shares changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. PPC has a low gross profit margin of 2.9%. Investors should track gross profit margin ratios over several years in order to see if earnings are consistent, growing or declining. Operating margin for PPC is 3.3% and net margin is -4.5%, both low relative to its gross margin.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for PPC is 2.34, indicating that the stock is trading for more 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. 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: Using The Price-To-Book Ratio To Evaluate Companies
After a decline of 4.4%, Sanderson Farms (Nasdaq:SAFM) has hit a share price of $47.92. At 163,242 shares, the company's volume so far today is 0.5 times the average volume over the last 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. 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. SAFM has a low gross profit margin of 2.8%. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Relative to its gross profit margin, SAFM's operating profit margin of 6.9% and net profit margin of -2.8% are low.
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. A price/sales ratio is derived by dividing stock market price by company sales. SAFM's P/S ratio of 0.54 is fairly low. A company with a lower P/S ratio is generally considered more attractive, since investors are paying less for each dollar of sales. 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.
Brown-Forman (NYSE:BF.A) is up 3.1% to reach a current price of $93.25 per share. So far today, the company's volume is 5,046 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. 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. 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. BF.A's dividend yield of 1.5% is fairly low. 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
Hershey (NYSE:HSY) has risen 2.8% and is currently trading at $70.30 per share. At 1.1 million shares, the company's volume so far today is 0.8 times the average daily volume. The trading volume for a stock indicates the level of investor interest. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. HSY has a gross profit margin of 41.9%. All else being equal, investors should feel more confident investing in a company with a high operating margin than one with a low operating margin. With an operating profit margin of 19.3%, HSY has a low one relative to its gross profit margin. Because the business models of companies vary so widely, it can be difficult to compare net profit margin ratios for companies in different industries. Net profit margin for the company is 10.7%.
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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. HSY has a capitalization ratio of 72.7%, which is on the high end. If the company is a company is in a highly competitive business and hobbled by high debt, it will find its competitors taking advantage of its problems to grab more market share. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Brown-Forman (NYSE:BF.B) has moved up 2.7% and is currently trading at $95.50 per share. The company's volume for the day so far is 201,341 shares. Yesterday, volume was only 185,898 shares. Volume is used to evaluate how meaningful the price movement of a stock is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The debt-equity (D/E) ratio is a leverage ratio. The debt-equity ratio of 24% is relatively low. 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.
Anheuser-Busch InBev NV (NYSE:BUD) is currently trading at $72.10 per share, a 1.8% increase. So far today, the company's volume is 860,149 shares, 0.6 times its average over the past three months. 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. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. BUD has a P/E ratio of 19.4. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Church & Dwight Co (NYSE:CHD) is at $53.92 per share after an increase of 1.6%. This morning, the company is trading a volume of 278,271 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Margin analysis is a great way to understand the profitability of companies. CHD's gross profit margin is 46.7%. Investors in growth stocks or short-term traders may be less interested in the operating margin ratio. CHD's operating profit margin is 20.7%. Net profit margins are those generated from all phases of a business, including taxes. Net margin is 11.5%.
Investors can make use of valuation ratios to estimate whether a stock is fairly valued. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. CHD has a P/B ratio of 3.69 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: How Buybacks Warps The Price-To-Book Ratio
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. 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.
The Consumer/Non-Cyclical sector (XLP) remains relatively unchanged so far today and here are its biggest movers:
| Company | Market Cap | Percentage Change |
| Pilgrim\'s Pride Corporation (NYSE:PPC) | $1.95 billion | -4.7% |
| Sanderson Farms, Inc. (Nasdaq:SAFM) | $1.15 billion | -4.4% |
| Brown-Forman Corporation (NYSE:BF.A) | $5.09 billion | +3.1% |
| Hershey (NYSE:HSY) | $15.3 billion | +2.8% |
| Brown-Forman (NYSE:BF.B) | $7.98 billion | +2.7% |
| Anheuser-Busch InBev NV (ADR) (NYSE:BUD) | $113.76 billion | +1.8% |
| Church & Dwight Co., Inc. (NYSE:CHD) | $7.37 billion | +1.6% |
Falling 4.7%, Pilgrim's (NYSE:PPC) is currently at a share price of $7.17. So far today, the company's volume is 207,871 shares. Yesterday, 921,984 shares changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. PPC has a low gross profit margin of 2.9%. Investors should track gross profit margin ratios over several years in order to see if earnings are consistent, growing or declining. Operating margin for PPC is 3.3% and net margin is -4.5%, both low relative to its gross margin.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. The P/B ratio for PPC is 2.34, indicating that the stock is trading for more 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. 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: Using The Price-To-Book Ratio To Evaluate Companies
After a decline of 4.4%, Sanderson Farms (Nasdaq:SAFM) has hit a share price of $47.92. At 163,242 shares, the company's volume so far today is 0.5 times the average volume over the last 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. 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. SAFM has a low gross profit margin of 2.8%. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Relative to its gross profit margin, SAFM's operating profit margin of 6.9% and net profit margin of -2.8% are low.
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. A price/sales ratio is derived by dividing stock market price by company sales. SAFM's P/S ratio of 0.54 is fairly low. A company with a lower P/S ratio is generally considered more attractive, since investors are paying less for each dollar of sales. 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.
Brown-Forman (NYSE:BF.A) is up 3.1% to reach a current price of $93.25 per share. So far today, the company's volume is 5,046 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. 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. 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. BF.A's dividend yield of 1.5% is fairly low. 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
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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. HSY has a capitalization ratio of 72.7%, which is on the high end. If the company is a company is in a highly competitive business and hobbled by high debt, it will find its competitors taking advantage of its problems to grab more market share. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Brown-Forman (NYSE:BF.B) has moved up 2.7% and is currently trading at $95.50 per share. The company's volume for the day so far is 201,341 shares. Yesterday, volume was only 185,898 shares. Volume is used to evaluate how meaningful the price movement of a stock is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The debt-equity (D/E) ratio is a leverage ratio. The debt-equity ratio of 24% is relatively low. 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.
Anheuser-Busch InBev NV (NYSE:BUD) is currently trading at $72.10 per share, a 1.8% increase. So far today, the company's volume is 860,149 shares, 0.6 times its average over the past three months. 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. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. BUD has a P/E ratio of 19.4. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Church & Dwight Co (NYSE:CHD) is at $53.92 per share after an increase of 1.6%. This morning, the company is trading a volume of 278,271 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Margin analysis is a great way to understand the profitability of companies. CHD's gross profit margin is 46.7%. Investors in growth stocks or short-term traders may be less interested in the operating margin ratio. CHD's operating profit margin is 20.7%. Net profit margins are those generated from all phases of a business, including taxes. Net margin is 11.5%.
Investors can make use of valuation ratios to estimate whether a stock is fairly valued. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. CHD has a P/B ratio of 3.69 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: How Buybacks Warps The Price-To-Book Ratio
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. 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
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
