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National Grid plc Among Utilities' Biggest Movers on September 10, 2012
Currently, the Nasdaq has fallen 0.6%, the S&P 500 has moved little and the Dow is up 0.1%. The utilities sector is a category of stocks for utilities such as gas and power. It contains companies such as electric, gas and water firms and integrated providers. Because utilities require significant infrastructure, these firms often carry large amounts of debt. With a high debt load, utilities companies become sensitive to changes in the interest rate. As interest rates rise or drop, the debt payments will increase or decrease. The utilities sector performs best when interest rates are falling or remain low.
The Utilities sector (XLU) has increased 0.1% overall, and these are the biggest movers in the sector so far:
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Niska Gas Storage (NYSE:NKA) has risen 2.3% to hit a current price of $13.21 per share. The company's volume for the day so far is 31,134 shares. Volume indicates the level of interest that investors have in a company at its current price. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The dividend yield is calculated by dividing a company's dividends per share by its stock price. NKA has a high dividend yield of 10.8%. This is good news for income investors as the payout could be high. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Due Diligence On Dividends
NRG (NYSE:NRG) is currently trading at $22.15 per share, a 1.7% increase. At 1.5 million shares, the company's volume so far today is 0.4 times the average volume over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 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 NRG is 0.68 because the stock is trading for less than its book value. 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. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Using The Price-To-Book Ratio To Evaluate Companies
National Grid plc (NYSE:NGG) is down 1.5% to reach $54.65 per share. So far today, 197,042 shares of the company's stock have changed hands. If a stock price makes a big move up or down, volume lets us know the significance of that move. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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. NGG has a P/E ratio of 12.2, high compared to the industry average of 10.46. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Can Investors Trust the P/E Ratio?
Copano Energy (Nasdaq:CPNO) is currently trading at a share price of $31.86, a 1.5% decline. At 40,725 shares, the company's volume so far today is 0.3 times the average daily volume. Volume is used to evaluate how meaningful the price movement of a stock is. 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. The price/sales ratio measures a company's stock market price by its revenues. CPNO has a high P/S ratio of 1.47. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
Falling 1.4%, Crestwood Midstream (NYSE:CMLP) is currently at a share price of $23.18. This morning, the company is trading a volume of 74,675 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. 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. CMLP has a debt ratio of 53.4%. 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.
At $35.67, Exelon (NYSE:EXC) has slipped 1.3%. The company's volume for the day so far is 2.6 million shares, in keeping with the average volume over the past three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. EXC has a D/E ratio of 88%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
National Fuel (NYSE:NFG) has risen 1.3% and is currently trading at $52.09 per share. The company's volume for the day so far is 85,075 shares. This is on pace to reach yesterday's trading volume of 174,966 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. NFG's capitalization ratio is 36.6%. 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 No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. 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 Utilities sector (XLU) has increased 0.1% overall, and these are the biggest movers in the sector so far:
| Company | Market Cap | Percentage Change |
| Niska Gas Storage (NYSE:NKA) | $881.7 million | +2.3% |
| NRG (NYSE:NRG) | $4.96 billion | +1.7% |
| National Grid plc (NYSE:NGG) | $39.59 billion | -1.5% |
| Copano Energy (Nasdaq:CPNO) | $2.34 billion | -1.5% |
| Crestwood Midstream (NYSE:CMLP) | $1.13 billion | -1.4% |
| Exelon (NYSE:EXC) | $30.86 billion | -1.3% |
| National Fuel (NYSE:NFG) | $4.29 billion | +1.3% |
Niska Gas Storage (NYSE:NKA) has risen 2.3% to hit a current price of $13.21 per share. The company's volume for the day so far is 31,134 shares. Volume indicates the level of interest that investors have in a company at its current price. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The dividend yield is calculated by dividing a company's dividends per share by its stock price. NKA has a high dividend yield of 10.8%. This is good news for income investors as the payout could be high. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Due Diligence On Dividends
NRG (NYSE:NRG) is currently trading at $22.15 per share, a 1.7% increase. At 1.5 million shares, the company's volume so far today is 0.4 times the average volume over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 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 NRG is 0.68 because the stock is trading for less than its book value. 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. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Using The Price-To-Book Ratio To Evaluate Companies
National Grid plc (NYSE:NGG) is down 1.5% to reach $54.65 per share. So far today, 197,042 shares of the company's stock have changed hands. If a stock price makes a big move up or down, volume lets us know the significance of that move. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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. NGG has a P/E ratio of 12.2, high compared to the industry average of 10.46. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Can Investors Trust the P/E Ratio?
Copano Energy (Nasdaq:CPNO) is currently trading at a share price of $31.86, a 1.5% decline. At 40,725 shares, the company's volume so far today is 0.3 times the average daily volume. Volume is used to evaluate how meaningful the price movement of a stock is. 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. The price/sales ratio measures a company's stock market price by its revenues. CPNO has a high P/S ratio of 1.47. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
Falling 1.4%, Crestwood Midstream (NYSE:CMLP) is currently at a share price of $23.18. This morning, the company is trading a volume of 74,675 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. 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. CMLP has a debt ratio of 53.4%. 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.
At $35.67, Exelon (NYSE:EXC) has slipped 1.3%. The company's volume for the day so far is 2.6 million shares, in keeping with the average volume over the past three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. EXC has a D/E ratio of 88%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
National Fuel (NYSE:NFG) has risen 1.3% and is currently trading at $52.09 per share. The company's volume for the day so far is 85,075 shares. This is on pace to reach yesterday's trading volume of 174,966 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. NFG's capitalization ratio is 36.6%. 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 No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. 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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