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EOG and Other Oil and Gas Operations Stocks Making Big Moves on October 3, 2012
The morning has been good for the market. The Nasdaq has risen 0.7%; the S&P 500 has moved up 0.5%; and the Dow is trading up 0.3%.
Despite a good day for the overall market so far, the Oil and Gas Operations sector (DIG) is down 1.9% and its current biggest movers are:
Broker Summary: Charles Schwab Online Brokerage
At $50.32, Clayton Williams Energy (Nasdaq:CWEI) has slipped 3.3%. So far today, the company's volume is 19,938 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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 capitalization ratio for CWEI is 64.6%, which is fairly high. 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.
Berry Petroleum (NYSE:BRY) is currently trading at a share price of $38.42, a 3.3% decline. The company's volume is currently 196,215 shares for the day, 0.3 times its current three-month average. Volume is an important indicator because it indicates how significant a price shift is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. Dividend yield measures the income that a stock will generate for an investor. BRY's dividend yield of 0.8% is fairly low. A company with a low dividend yield may be a safer investment in the long run. It is important to remember that while a higher dividend yield is more attractive, all else being equal, a higher dividend yield can also indicate greater perceived risk. SEE: Investment Valuation Ratios: Dividend Yield
After a decline of 2.7%, Continental Resources (NYSE:CLR) has hit a share price of $75.23. So far today, 364,666 shares of the company's stock have changed hands. This is on pace to reach yesterday's trading volume of 619,747 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. CLR's P/S ratio of 5.9 is on the high side. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Falling 2.6%, Concho Resources (NYSE:CXO) is currently at a share price of $94.38. So far today, the company's volume is 305,848 shares, 0.3 times the average daily volume. If a stock price moves on high volume, this means that the change is a significant one. 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. CXO has a debt ratio of 56.7%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Cimarex (NYSE:XEC) has decreased to $58.16 per share, a 2.5% fall. The company's volume for the day so far is 223,055 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. 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 debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. XEC has a debt-equity ratio of 23%, which is on the low side. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Slipping 2.4%, EOG (NYSE:EOG) is currently trading at $112.42 per share. So far today, the company's volume is 642,404 shares, in keeping with the average volume over the past three months. 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. 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 EOG is 2.27, 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Investment Valuation Ratios: Price/Book Value Ratio
At $53.77, SM (NYSE:SM) has slipped 2.3%. The company's volume is currently 362,790 shares. This is on pace to fall short of yesterday's volume of 1.1 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. Compared to the industry average of 16.3, SM's P/E ratio of 23.2 is quite high. This could mean that the market is expecting big things over the next few months or years. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Understanding The P/E Ratio
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. 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.
Despite a good day for the overall market so far, the Oil and Gas Operations sector (DIG) is down 1.9% and its current biggest movers are:
| Company | Market Cap | Percentage Change |
| Clayton Williams Energy (Nasdaq:CWEI) | $633.1 million | -3.3% |
| Berry Petroleum (NYSE:BRY) | $2.15 billion | -3.3% |
| Continental Resources (NYSE:CLR) | $14 billion | -2.7% |
| Concho Resources (NYSE:CXO) | $10.13 billion | -2.6% |
| Cimarex (NYSE:XEC) | $5.13 billion | -2.5% |
| EOG (NYSE:EOG) | $31.09 billion | -2.4% |
| SM (NYSE:SM) | $3.58 billion | -2.3% |
At $50.32, Clayton Williams Energy (Nasdaq:CWEI) has slipped 3.3%. So far today, the company's volume is 19,938 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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 capitalization ratio for CWEI is 64.6%, which is fairly high. 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.
Berry Petroleum (NYSE:BRY) is currently trading at a share price of $38.42, a 3.3% decline. The company's volume is currently 196,215 shares for the day, 0.3 times its current three-month average. Volume is an important indicator because it indicates how significant a price shift is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. Dividend yield measures the income that a stock will generate for an investor. BRY's dividend yield of 0.8% is fairly low. A company with a low dividend yield may be a safer investment in the long run. It is important to remember that while a higher dividend yield is more attractive, all else being equal, a higher dividend yield can also indicate greater perceived risk. SEE: Investment Valuation Ratios: Dividend Yield
After a decline of 2.7%, Continental Resources (NYSE:CLR) has hit a share price of $75.23. So far today, 364,666 shares of the company's stock have changed hands. This is on pace to reach yesterday's trading volume of 619,747 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. CLR's P/S ratio of 5.9 is on the high side. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Falling 2.6%, Concho Resources (NYSE:CXO) is currently at a share price of $94.38. So far today, the company's volume is 305,848 shares, 0.3 times the average daily volume. If a stock price moves on high volume, this means that the change is a significant one. 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. CXO has a debt ratio of 56.7%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Cimarex (NYSE:XEC) has decreased to $58.16 per share, a 2.5% fall. The company's volume for the day so far is 223,055 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. 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 debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. XEC has a debt-equity ratio of 23%, which is on the low side. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Slipping 2.4%, EOG (NYSE:EOG) is currently trading at $112.42 per share. So far today, the company's volume is 642,404 shares, in keeping with the average volume over the past three months. 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. 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 EOG is 2.27, 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Investment Valuation Ratios: Price/Book Value Ratio
At $53.77, SM (NYSE:SM) has slipped 2.3%. The company's volume is currently 362,790 shares. This is on pace to fall short of yesterday's volume of 1.1 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. Compared to the industry average of 16.3, SM's P/E ratio of 23.2 is quite high. This could mean that the market is expecting big things over the next few months or years. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Understanding The P/E Ratio
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. 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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