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Tickers in this Article: LEAP, PCS, NFLX, HPY, ESI, DIN, FDO
The Nasdaq is up 0.6%, the S&P 500 has risen 0.4% and the Dow has climbed 0.3%, marking a bad morning for the market.

Outperforming the market overall, the Services sector (IYC) is up 0.8% and its biggest movers so far today are:
CompanyMarket CapPercentage Change
Leap Wireless International (Nasdaq:LEAP)$601.3 million-16.7%
MetroPCS Communications (NYSE:PCS)$4.93 billion-9.1%
Netflix (Nasdaq:NFLX)$3.14 billion+7.5%
Heartland Payment Systems (NYSE:HPY)$1.28 billion-7.4%
ITT Educational Services (NYSE:ESI)$740.6 million-6.5%
DineEquity (NYSE:DIN)$1.04 billion+4.8%
Family Dollar (NYSE:FDO)$7.71 billion+4%
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Taking a 16.7% hit, Leap Wireless International (Nasdaq:LEAP) is currently trading at $6.32 per share. The company's volume is currently 11.1 million shares for the day, 3.8 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 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. LEAP has a capitalization ratio of 87%, which is on the high end. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.

MetroPCS Communications (NYSE:PCS) has decreased to $12.34 per share, a 9.1% fall. So far today, the company's volume is 40.1 million shares. Yesterday's volume was only 37.7 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. The P/B ratio for PCS is 1.44, 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. 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

After an increase of 7.5%, Netflix (Nasdaq:NFLX) has reached a current price of $60.70. At 4.6 million shares, the company's volume so far today is 1.1 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. 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. While measuring a price/earnings ratio (P/E ratio) is a popular valuation technique, the measure cannot be calculated for companies without earnings, so some investors analyze the price/sales ratio. NFLX has a high P/S ratio of 1.1. 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.

Heartland Payment Systems (NYSE:HPY) has fallen 7.4% and is currently trading at $30.36 per share. The company is currently trading a volume of 1.1 million shares. 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. HPY's debt ratio of 63.3% is fairly high. This might mean that the company now has low borrowing capacity, which reduces it's financial flexibility. 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.

Currently trading at $29.68 per share, ITT Educational Services (NYSE:ESI) has fallen 6.5%. The company's volume is currently 273,019 shares for the day, in keeping with its current daily average. Volume is an important indicator because it indicates how significant a price shift is. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. ESI has a high D/E ratio of 178%. Generally, a high D/E ratio means that the company may have difficulty generating enough cash to pay off its debts. 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.

Increasing 4.8%, DineEquity (NYSE:DIN) is trading at $59.25 per share. The company is trading at a volume of 126,979 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. The P/E ratio for DIN is 11.6, below the industry average of 20.61. A low P/E ratio may indicate that the market expects relatively slower earnings growth. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock

Family Dollar (NYSE:FDO) is at $68.67 per share after an increase of 4%. The company's volume is currently 2.7 million shares for the day, 1.5 times its current three-month average. The trading volume for a stock indicates the level of investor interest. 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. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. FDO has a low capitalization ratio of 28.2%. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.

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