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Consumer/Non-Cyclical Stocks, Including HJ, Making Big Moves on August 28, 2012
The market has been slipping so far today. The Nasdaq has fallen 0.1%; the S&P 500 has fallen 0.1%; and the Dow has declined 0.1%.
While the market overall has shown little change, the Consumer/Non-Cyclical sector (XLP) is up 0.2% and its current biggest movers are:
Broker Summary: Fidelity Online Brokerage
After an increase of 8.9%, Sanderson Farms (Nasdaq:SAFM) has reached a current price of $44.20. So far today, 966,703 shares have changed hands. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for SAFM is 1.96, 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: How Buybacks Warps The Price-To-Book Ratio
Rising 4.3%, Tyson (NYSE:TSN) is currently trading at $15.59 per share. The company's volume is currently five million shares for the day, more than yesterday's 4.2 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. Dividend yield measures the income that a stock will generate for an investor. TSN's dividend yield of 1.1% is fairly low. 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: Guide To Stock-Picking Strategies: Income Investing
After rising 3.2%, HJ (NYSE:HNZ) is currently trading at a share price of $58.26. So far today, the company's volume is 2.7 million shares. This is two times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for HNZ is 1.47, which is relatively high. 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.
Currently trading at $18.02 per share, Coca-Cola HBC S.A (NYSE:CCH) has fallen 2.6%. So far today, the company's volume is 12,531 shares, 0.8 times the average daily volume. 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 a 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. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. CCH has a debt ratio of 60.1%, which is on the high side. 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.
Annies (NYSE:BNNY) is up 2% to reach a current price of $41.32 per share. So far today, the company's volume is 127,861 shares. Volume indicates the level of interest that investors have in a company at its current price. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. BNNY's P/E ratio of 151.0 is above the industry average of 39.22. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Understanding The P/E Ratio
USANA Health Sciences (NYSE:USNA) is at $44.19 per share after an increase of 1.9%. So far today, the company's volume is 16,700 shares, while it was 82,557 shares yesterday. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. 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). USNA's PEG ratio of 0.65 is in line with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Blyth (NYSE:BTH) has increased to a share price of $43.83, a 1.8% rise. So far today, 90,692 shares have changed hands. This is 0.2 times the current three-month average. 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 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. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. BTH's P/B ratio of 6.46 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. 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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
While the market overall has shown little change, the Consumer/Non-Cyclical sector (XLP) is up 0.2% and its current biggest movers are:
| Company | Market Cap | Percentage Change |
| Sanderson Farms (Nasdaq:SAFM) | $932.3 million | +8.9% |
| Tyson (NYSE:TSN) | $5.41 billion | +4.3% |
| HJ (NYSE:HNZ) | $18.08 billion | +3.2% |
| Coca-Cola HBC S.A (NYSE:CCH) | $6.72 billion | -2.6% |
| Annies (NYSE:BNNY) | $690.9 million | +2% |
| USANA Health Sciences (NYSE:USNA) | $626.6 million | +1.9% |
| Blyth (NYSE:BTH) | $742.4 million | +1.8% |
After an increase of 8.9%, Sanderson Farms (Nasdaq:SAFM) has reached a current price of $44.20. So far today, 966,703 shares have changed hands. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for SAFM is 1.96, 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: How Buybacks Warps The Price-To-Book Ratio
Rising 4.3%, Tyson (NYSE:TSN) is currently trading at $15.59 per share. The company's volume is currently five million shares for the day, more than yesterday's 4.2 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. Dividend yield measures the income that a stock will generate for an investor. TSN's dividend yield of 1.1% is fairly low. 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: Guide To Stock-Picking Strategies: Income Investing
After rising 3.2%, HJ (NYSE:HNZ) is currently trading at a share price of $58.26. So far today, the company's volume is 2.7 million shares. This is two times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for HNZ is 1.47, which is relatively high. 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.
Annies (NYSE:BNNY) is up 2% to reach a current price of $41.32 per share. So far today, the company's volume is 127,861 shares. Volume indicates the level of interest that investors have in a company at its current price. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. BNNY's P/E ratio of 151.0 is above the industry average of 39.22. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Understanding The P/E Ratio
USANA Health Sciences (NYSE:USNA) is at $44.19 per share after an increase of 1.9%. So far today, the company's volume is 16,700 shares, while it was 82,557 shares yesterday. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. 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). USNA's PEG ratio of 0.65 is in line with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Blyth (NYSE:BTH) has increased to a share price of $43.83, a 1.8% rise. So far today, 90,692 shares have changed hands. This is 0.2 times the current three-month average. 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 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. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. BTH's P/B ratio of 6.46 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. 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. 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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