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Financial Sector's Biggest Movers for July 25, 2012: WLP and More
The Nasdaq has declined 0.8%, the S&P 500 has slipped 0.2% and the Dow is up 0.4% after the morning's trading. The financial sector is the category of stocks containing firms that provide financial services to commercial and retail customers. This sector includes banks, investment funds, insurance companies and real estate. Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop. Furthermore, when the business cycle is in an upswing, the financial sector benefits from additional investments. Improved economic conditions usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a larger number of loans.
The Financial sector (XLF) has moved up 0.1% so far today and here are its biggest movers:
Broker Summary: TD Ameritrade Thinkorswim
WellPoint (NYSE:WLP) is at a share price of $54.05 after a sharp decline of 12%. This morning, the company is trading a volume of 7.9 million shares. A stock's volume conveys how excited investors are about it. 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 calculated by dividing the current stock price by the company's book value per share. WLP has a P/B ratio of 0.76, which shows that its book value is higher than its share price. This could mean that either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: Investment Valuation Ratios: Price/Book Value Ratio
After a big jump of 10.3%, Duff (NYSE:DUF) is trading at $15.40 per share. The company's volume is currently 102,452 shares for the day, 1.3 times the average daily volume. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. 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. DUF has a P/E ratio of 22.8, in line with the industry average. 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: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Currently trading at $22.47 per share, Health Net (NYSE:HNT) has fallen 9.7%. So far today, the company's volume is 3.3 million shares. Yesterday, volume was only 2.7 million shares. 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. 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. HNT's PEG ratio of 1.73 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.
Euronet Worldwide (Nasdaq:EEFT) is currently trading at $17.50 per share, a 8.6% increase. So far today, the company's volume is 254,171 shares, 1.1 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 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 price/sales ratio measures a company's stock market price by its revenues. EEFT has a low P/S ratio of 0.89. A company with a lower P/S ratio is generally considered more attractive, since investors are paying less for each dollar of sales. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Nasdaq OMX (Nasdaq:NDAQ) is at $23.10 per share after an increase of 5.8%. The company is currently trading a volume of 1.3 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. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. NDAQ has a debt ratio of 42.9%, which is fairly low. 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.
UnitedHealth (NYSE:UNH) is down 5.4% to reach $51.92 per share. The company's volume is currently 11 million shares for the day, 1.6 times the average daily volume. 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. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. UNH has a debt-equity ratio of 43%, which is on the low side. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. 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.
After a decline of 4.8%, Coventry Health Care (NYSE:CVH) has hit a share price of $30.41. The company's volume is currently 746,734 shares. This is on pace to reach yesterday's trading volume of 1.6 million shares. The trading volume for a stock indicates the level of investor interest. 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. CVH has a fairly low capitalization ratio of 25.2%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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 Financial sector (XLF) has moved up 0.1% so far today and here are its biggest movers:
| Company | Market Cap | Percentage Change |
| WellPoint (NYSE:WLP) | $20.32 billion | -12% |
| Duff & Phelps Corp (NYSE:DUF) | $594 million | +10.3% |
| Health Net, Inc. (NYSE:HNT) | $2.07 billion | -9.7% |
| Euronet Worldwide, Inc. (Nasdaq:EEFT) | $817.5 million | +8.6% |
| Nasdaq OMX Group (Nasdaq:NDAQ) | $3.71 billion | +5.8% |
| UnitedHealth Group (NYSE:UNH) | $56.96 billion | -5.4% |
| Coventry Health Care (NYSE:CVH) | $4.56 billion | -4.8% |
WellPoint (NYSE:WLP) is at a share price of $54.05 after a sharp decline of 12%. This morning, the company is trading a volume of 7.9 million shares. A stock's volume conveys how excited investors are about it. 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 calculated by dividing the current stock price by the company's book value per share. WLP has a P/B ratio of 0.76, which shows that its book value is higher than its share price. This could mean that either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: Investment Valuation Ratios: Price/Book Value Ratio
After a big jump of 10.3%, Duff (NYSE:DUF) is trading at $15.40 per share. The company's volume is currently 102,452 shares for the day, 1.3 times the average daily volume. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. 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. DUF has a P/E ratio of 22.8, in line with the industry average. 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: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Currently trading at $22.47 per share, Health Net (NYSE:HNT) has fallen 9.7%. So far today, the company's volume is 3.3 million shares. Yesterday, volume was only 2.7 million shares. 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. 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. HNT's PEG ratio of 1.73 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.
Euronet Worldwide (Nasdaq:EEFT) is currently trading at $17.50 per share, a 8.6% increase. So far today, the company's volume is 254,171 shares, 1.1 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 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 price/sales ratio measures a company's stock market price by its revenues. EEFT has a low P/S ratio of 0.89. A company with a lower P/S ratio is generally considered more attractive, since investors are paying less for each dollar of sales. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Nasdaq OMX (Nasdaq:NDAQ) is at $23.10 per share after an increase of 5.8%. The company is currently trading a volume of 1.3 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. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. NDAQ has a debt ratio of 42.9%, which is fairly low. 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.
UnitedHealth (NYSE:UNH) is down 5.4% to reach $51.92 per share. The company's volume is currently 11 million shares for the day, 1.6 times the average daily volume. 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. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. UNH has a debt-equity ratio of 43%, which is on the low side. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. 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.
After a decline of 4.8%, Coventry Health Care (NYSE:CVH) has hit a share price of $30.41. The company's volume is currently 746,734 shares. This is on pace to reach yesterday's trading volume of 1.6 million shares. The trading volume for a stock indicates the level of investor interest. 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. CVH has a fairly low capitalization ratio of 25.2%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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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