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IOC and Other Oil and Gas Operations Stocks Making Big Moves on July 26, 2012
The market is doing well so far today. The Nasdaq is trading up 1.1%; the S&P 500 has risen 1.3%; and the Dow has increased 1.4%.
Outperforming the market overall, the Oil and Gas Operations sector (DIG) is up 2.9% and its biggest movers so far today are:
Forex Broker Summary: Forex Capital Markets (FXCM)
InterOil Corporation (NYSE:IOC) has increased to a share price of $82.89, a 9.9% rise. At 795,294 shares, the company's volume so far today is 1.5 times its current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. 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/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. IOC's P/B ratio of 11.31 shows that its share price is higher 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. 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: How Buybacks Warps The Price-To-Book Ratio
Currently trading at $6.54 per share, Halcon (NYSE:HK) has fallen 9%. The company's volume for the day so far is 1.2 million shares. Volume indicates the level of interest that investors have in a company at its current price. 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. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. HK's D/E ratio is 63%. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Continental Resources (NYSE:CLR) is down 5.9% to reach $65.05 per share. The company's volume for the day so far is 1.7 million shares, 1.1 times the average volume over the last three months. The trading volume for a stock indicates the level of investor interest. 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. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. CLR's capitalization ratio is 44.3%. 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.
Energen (NYSE:EGN) is currently trading at $49.06 per share, a 5.7% increase. So far today, the company's volume is 397,909 shares. This is about the same trading activity as there was yesterday. Volume is used to evaluate how meaningful the price movement of a stock is. 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. 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 EGN is 15.1, below the industry average of 16.67. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Understanding The P/E Ratio
Cabot Oil & Gas (NYSE:COG) is up 4.8% to reach a current price of $41.20 per share. At 1.4 million shares, the company's volume so far today is 0.3 times the current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. COG's PEG ratio is 9.2. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Falling 4.7%, Clayton Williams Energy (Nasdaq:CWEI) is currently at a share price of $42.16. So far today, the company's volume is 37,057 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. 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. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for CWEI is 74.6%, which is relatively high. This might mean that the company now has low borrowing capacity, which reduces it's financial flexibility. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
GeoResources (Nasdaq:GEOI) is currently trading at a share price of $32.54, a 4% decline. At 155,678 shares, the company's volume so far today is 0.7 times its average over the past three months. A stock's volume conveys how excited investors are about it. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. A price/sales ratio is derived by dividing stock market price by company sales. GEOI's P/S ratio of 5.52 is on the high side. This could be a good sign if the share price increases. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
Outperforming the market overall, the Oil and Gas Operations sector (DIG) is up 2.9% and its biggest movers so far today are:
| Company | Market Cap | Percentage Change |
| InterOil Corporation (USA) (NYSE:IOC) | $3.63 billion | +9.9% |
| Halcon Resources Corp (NYSE:HK) | $1.04 billion | -9% |
| Continental Resources, Inc. (NYSE:CLR) | $12.53 billion | -5.9% |
| Energen Corporation (NYSE:EGN) | $3.35 billion | +5.7% |
| Cabot Oil & Gas Corporation (NYSE:COG) | $8.25 billion | +4.8% |
| Clayton Williams Energy, Inc. (Nasdaq:CWEI) | $538.1 million | -4.7% |
| GeoResources, Inc. (Nasdaq:GEOI) | $868.6 million | -4% |
InterOil Corporation (NYSE:IOC) has increased to a share price of $82.89, a 9.9% rise. At 795,294 shares, the company's volume so far today is 1.5 times its current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. 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/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. IOC's P/B ratio of 11.31 shows that its share price is higher 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. 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: How Buybacks Warps The Price-To-Book Ratio
Currently trading at $6.54 per share, Halcon (NYSE:HK) has fallen 9%. The company's volume for the day so far is 1.2 million shares. Volume indicates the level of interest that investors have in a company at its current price. 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. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. HK's D/E ratio is 63%. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Continental Resources (NYSE:CLR) is down 5.9% to reach $65.05 per share. The company's volume for the day so far is 1.7 million shares, 1.1 times the average volume over the last three months. The trading volume for a stock indicates the level of investor interest. 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. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. CLR's capitalization ratio is 44.3%. 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.
Cabot Oil & Gas (NYSE:COG) is up 4.8% to reach a current price of $41.20 per share. At 1.4 million shares, the company's volume so far today is 0.3 times the current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. COG's PEG ratio is 9.2. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Falling 4.7%, Clayton Williams Energy (Nasdaq:CWEI) is currently at a share price of $42.16. So far today, the company's volume is 37,057 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. 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. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for CWEI is 74.6%, which is relatively high. This might mean that the company now has low borrowing capacity, which reduces it's financial flexibility. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
GeoResources (Nasdaq:GEOI) is currently trading at a share price of $32.54, a 4% decline. At 155,678 shares, the company's volume so far today is 0.7 times its average over the past three months. A stock's volume conveys how excited investors are about it. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. A price/sales ratio is derived by dividing stock market price by company sales. GEOI's P/S ratio of 5.52 is on the high side. This could be a good sign if the share price increases. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
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. 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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