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Diageo plc and Other Consumer/Non-Cyclical Stocks Making Big Moves on October 4, 2012
The Nasdaq is unchanged, the S&P 500 has increased 0.4% and the Dow is trading up 0.5% after the morning's trading.
The biggest movers in the Consumer/Non-Cyclical sector (XLP) (+0.3%) are:
Forex Broker Summary: UFXMarkets
Currently trading at $15.36 per share, Dean Foods (NYSE:DF) has fallen 3.1%. So far today, the company's volume is 1.8 million shares. 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. 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. 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 DF is 0.24, which is relatively low. Coupled with high relative strength in the previous twelve months, a low P/S ratio is one of the most potent combinations of investment criteria. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
After rising 2.2%, Embotelladora Andina SA (NYSE:AKO.B) is currently trading at a share price of $35.05. With 15,814 shares changing hands so far today, the company's volume is in keeping with the average volume over the past three months. High volume indicates a lot of investor interest while low volume indicates the opposite. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. AKO.B has a low debt ratio of 41.7%. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
At $23.01, Green Mountain Coffee Roasters (Nasdaq:GMCR) has slipped 1.6%. The company's volume for the day so far is 3.4 million shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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-equity (D/E) ratio is a leverage ratio. GMCR's debt-equity ratio of 18% is on the low end. This shows that the company's assets are financed primarily through equity. 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.
Rising 1.5%, Diageo plc (NYSE:DEO) is currently trading at $115.94 per share. At 408,313 shares, the company's volume so far today is 0.7 times the average daily volume. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. DEO has a capitalization ratio of 58.7%, which is on the high end. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Monster (Nasdaq:MNST) is currently trading at $55.16 per share, a 1.4% increase. The company's volume for the day so far is 545,700 shares. 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. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. When used consistently and uniformly, the price/earnings to growth (PEG) ratio is an essential tool that adds dimension to the price/earnings ratio, allows comparisons across diverse industries and is always on the lookout for value. MNST has a PEG ratio of 1.52, which is consistent 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.
After a decline of 1.3%, Hain Celestial Group (Nasdaq:HAIN) has hit a share price of $63.83. The company's volume for the day so far is 270,821 shares, 0.3 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. HAIN's stock is trading for more than its book value with a P/B ratio of 2.97. 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. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
Tupperware (NYSE:TUP) has increased to a share price of $54.81, a 1.1% rise. So far today, 53,839 shares of the company's stock have changed hands. This is a sign that there will be less trading activity than there was yesterday. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. Compared to the industry average of 12.26, TUP's P/E ratio of 19.0 is quite high. 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. 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 The nature of the market is such that stocks will have good days and bad days. 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 biggest movers in the Consumer/Non-Cyclical sector (XLP) (+0.3%) are:
| Company | Market Cap | Percentage Change |
| Dean Foods (NYSE:DF) | $2.93 billion | -3.1% |
| Embotelladora Andina SA (NYSE:AKO.B) | $4.34 billion | +2.2% |
| Green Mountain Coffee Roasters (Nasdaq:GMCR) | $3.64 billion | -1.6% |
| Diageo plc (NYSE:DEO) | $78.66 billion | +1.5% |
| Monster (Nasdaq:MNST) | $9.59 billion | +1.4% |
| Hain Celestial Group (Nasdaq:HAIN) | $2.91 billion | -1.3% |
| Tupperware (NYSE:TUP) | $3.02 billion | +1.1% |
Currently trading at $15.36 per share, Dean Foods (NYSE:DF) has fallen 3.1%. So far today, the company's volume is 1.8 million shares. 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. 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. 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 DF is 0.24, which is relatively low. Coupled with high relative strength in the previous twelve months, a low P/S ratio is one of the most potent combinations of investment criteria. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
After rising 2.2%, Embotelladora Andina SA (NYSE:AKO.B) is currently trading at a share price of $35.05. With 15,814 shares changing hands so far today, the company's volume is in keeping with the average volume over the past three months. High volume indicates a lot of investor interest while low volume indicates the opposite. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. AKO.B has a low debt ratio of 41.7%. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
At $23.01, Green Mountain Coffee Roasters (Nasdaq:GMCR) has slipped 1.6%. The company's volume for the day so far is 3.4 million shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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-equity (D/E) ratio is a leverage ratio. GMCR's debt-equity ratio of 18% is on the low end. This shows that the company's assets are financed primarily through equity. 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.
Rising 1.5%, Diageo plc (NYSE:DEO) is currently trading at $115.94 per share. At 408,313 shares, the company's volume so far today is 0.7 times the average daily volume. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. DEO has a capitalization ratio of 58.7%, which is on the high end. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Monster (Nasdaq:MNST) is currently trading at $55.16 per share, a 1.4% increase. The company's volume for the day so far is 545,700 shares. 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. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. When used consistently and uniformly, the price/earnings to growth (PEG) ratio is an essential tool that adds dimension to the price/earnings ratio, allows comparisons across diverse industries and is always on the lookout for value. MNST has a PEG ratio of 1.52, which is consistent 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.
After a decline of 1.3%, Hain Celestial Group (Nasdaq:HAIN) has hit a share price of $63.83. The company's volume for the day so far is 270,821 shares, 0.3 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. HAIN's stock is trading for more than its book value with a P/B ratio of 2.97. 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. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
Tupperware (NYSE:TUP) has increased to a share price of $54.81, a 1.1% rise. So far today, 53,839 shares of the company's stock have changed hands. This is a sign that there will be less trading activity than there was yesterday. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. Compared to the industry average of 12.26, TUP's P/E ratio of 19.0 is quite high. 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. 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 The nature of the market is such that stocks will have good days and bad days. 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
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