After the morning's trading, the Nasdaq has moved little, the S&P 500 has fallen 0.3% and the Dow has been relatively flat.
The Consumer/Non-Cyclical sector (XLP) has fallen 0.6% despite little change in the market overall. The biggest movers in the sector so far are:
|Company||Market Cap||Percentage Change|
|Blyth (NYSE:BTH)||$711.9 million||-12.6%|
|Green Mountain Coffee Roasters (Nasdaq:GMCR)||$4.66 billion||-3.9%|
|Embotelladora Andina SA (NYSE:AKO.A)||$3.42 billion||+3.3%|
|Embotelladora Andina SA (NYSE:AKO.B)||$4.28 billion||+2.2%|
|Elizabeth Arden (Nasdaq:RDEN)||$1.32 billion||+2.2%|
|Universal (NYSE:UVV)||$1.15 billion||+2.1%|
|Dean Foods (NYSE:DF)||$3.04 billion||-2.1%|
Software Summary: Finviz.com Stock Screener
Blyth (NYSE:BTH) is at a share price of $34.01 after a sharp decline of 12.6%. So far today, the company's volume is 2.2 million shares, 14.4 times the average daily volume. A stock's volume conveys how excited investors are about it. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The dividend yield is calculated by dividing a company's dividends per share by its stock price. BTH has a low dividend yield of 0.5%. This may indicate that the company's stock is overpriced. 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: Dividend Yield For The Downturn
Green Mountain Coffee Roasters (Nasdaq:GMCR) is currently trading at a share price of $26.75, a 3.9% decline. So far today, the company's volume is 7.9 million shares. Volume is an important indicator because it indicates how significant a price shift is. 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. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). GMCR's P/E ratio of 12.8 falls below the industry average of 26.73. A low P/E ratio may indicate that the market expects relatively slower earnings growth. 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: Understanding The P/E Ratio
Embotelladora Andina SA (NYSE:AKO.A) is at $28.51 per share after an increase of 3.3%. The company's volume is currently 1,100 shares for the day, 0.1 times the current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. AKO.A has a dividend yield of 3.7%. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Guide To Stock-Picking Strategies: Income Investing
Embotelladora Andina SA (NYSE:AKO.B) has increased to a share price of $35.75, a 2.2% rise. The company is trading at a volume of 1,565 shares. At this rate, trading activity will likely be down from yesterday when 102,603 shares changed hands. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). P/E ratio for AKO.B is 36.6. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Find P/E And PEG Ratios
Elizabeth Arden (Nasdaq:RDEN) has risen 2.2% to hit a current price of $46.76 per share. The company's volume is currently 100,924 shares for the day, 0.7 times the current daily average. 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. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. 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. RDEN's debt ratio is 54.8%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Universal (NYSE:UVV) is currently trading at $51.62 per share, a 2.1% increase. This morning, the company is trading a volume of 152,346 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. 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. 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. UVV has a low P/S ratio of 0.45. Low P/S ratios can indicate unrecognized value potential - so long as other criteria like high profit margins, low debt levels and growth prospects are in place. 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.
After a decline of 2.1%, Dean Foods (NYSE:DF) has hit a share price of $15.89. With 1.3 million shares changing hands so far today, the company's volume is 0.4 times its 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. 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. 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. DF has a high capitalization ratio of 100.1%. A high capitalization ratio is not necessarily bad since higher financial leverage can increase the return on a shareholder's investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
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.