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Tickers in this Article: CTB, KORS, GT, TTM, OXM, TSLA, CASC
So far today, the Nasdaq has remained steady, the S&P 500 has decreased 0.3% and the Dow remains relatively unchanged. The consumer cyclical sector is a category of stocks that relies heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment and retail. The category can be further divided into durable and non-durable sections. Durable cyclicals include physical goods such as hardware or vehicles, while non-durables represent items like movies or hotel services. The performance of consumer cyclicals is highly related to the state of the economy. They represent goods and services that are not considered necessities, but luxurious purchases. During contractions or recessions, people have less disposable income to spend on consumer cyclicals. When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.

The Consumer Cyclical sector (XLY) has risen 0.1% despite little change in the market overall. Currently, the biggest movers in the sector are:
CompanyMarket CapPercentage Change
Cooper Tire & Rubber (NYSE:CTB)$1.36 billion-9.3%
Michael Kors (NYSE:KORS)$10.16 billion+5.7%
Goodyear (NYSE:GT)$3.17 billion-4.6%
Tata Motors Limited (NYSE:TTM)$2.38 billion+3.5%
Oxford Industries (NYSE:OXM)$966.8 million+3.2%
Tesla Motors (Nasdaq:TSLA)$3.3 billion-2.5%
Cascade (NYSE:CASC)$599.4 million+2.5%
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Cooper Tire & Rubber (NYSE:CTB) has decreased to $19.95 per share, a 9.3% fall. So far today, the company's volume is 1.6 million shares, 1.4 times the current three-month average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Valuation ratios allow the investor to make a quick determination as to a company's investment value. 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. CTB's D/E ratio is 71%. 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.

Michael Kors (NYSE:KORS) has moved up 5.7% and is currently trading at $55.47 per share. The company's volume for the day so far is 5.2 million shares. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for KORS is 20.03, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Slipping 4.6%, Goodyear (NYSE:GT) is currently trading at $12.77 per share. At 4.6 million shares, the company's volume so far today is one times its current daily average. If a stock price moves on high volume, this means that the change is a significant one. 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 price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. GT has a low P/S ratio of 0.13. Low P/S ratios are more attractive than high ratios because this indicates that an investor is paying less for each dollar of sales. 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.

Tata Motors Limited (NYSE:TTM) has risen 3.5% and is currently trading at $25.50 per share. The company is trading at a volume of 742,676 shares. This is about the same trading activity as there was yesterday. The trading volume for a stock indicates the level of investor 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. 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. TTM's debt ratio of 70.2% 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.

Oxford Industries (NYSE:OXM) is up 3.2% to reach a current price of $58.88 per share. With 69,708 shares changing hands so far today, the company's volume is in keeping with its current three-month average. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the 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. OXM has a PEG ratio of 2.01, which is consistent 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.

At $30.11, Tesla Motors (Nasdaq:TSLA) has slipped 2.5%. The company is currently trading a volume of 525,194 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. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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. TSLA has a high capitalization ratio of 87.4%. A company considered too highly leveraged (too much debt) may find its freedom of action restricted by its creditors and/or have its profitability hurt by high interest costs. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.

Cascade (NYSE:CASC) has risen 2.5% to hit a current price of $55.02 per share. At 29,336 shares, the company's volume so far today is 0.4 times the average daily volume. 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. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. P/E ratio for CASC is 9.9. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: The P/E Ratio: A Good Market-Timing Indicator

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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