Free Annual Reports
Noble and Other Big Movers In Energy on September 4, 2012
The market has been slipping so far today. The Nasdaq has declined 0.8%; the S&P 500 has decreased 0.5%; and the Dow is down 0.7%. The energy sector is the category of stocks that relate to producing or supplying energy. This sector includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, or integrated power firms. Performance in the sector is largely driven by the supply and demand for worldwide energy. Energy producers will do very well during times of high oil and gas prices, but will earn less when the value of energy drops. Furthermore, this sector is sensitive to political events, which historically have driven changes in the price of oil.
The Energy sector (XLE) is currently lagging behind the overall market, down 1%, and its current biggest movers are:
Software Summary: Finviz.com Stock Screener
After a decline of 4.8%, Consol (NYSE:CNX) has hit a share price of $28.74. This morning, the company is trading a volume of two 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. The P/E ratio for CNX is 11.3, above the industry average of 5.03. 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. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?
Falling 4.7%, Walter Energy (NYSE:WLT) is currently at a share price of $31.17. The company's volume for the day so far is 1.8 million shares, 0.8 times 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. Understanding investment valuation ratios allows an investor to assess the true 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. WLT's capitalization ratio of 50.1% is relatively high. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
InterOil Corporation (NYSE:IOC) is currently trading at a share price of $76.36, a 4% decline. So far today, the company's volume is 330,283 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. 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. IOC has a P/B ratio of 10.42 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high 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: How Buybacks Warps The Price-To-Book Ratio
Noble (NYSE:NE) is trading at $36.74 per share, down 3.7%. At 2.3 million shares, the company's volume so far today is 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. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. The dividend yield for NE is 1.4%, which is on the low end. This may indicate that the company's stock is overpriced. It is important to remember that while a higher dividend yield is more attractive, all else being equal, a higher dividend yield can also indicate greater perceived risk. SEE: Dividend Yield For The Downturn
Increasing 3.6%, Global (NYSE:GLP) is trading at $26.05 per share. So far today, 76,049 shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. 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. GLP's P/S ratio of 0.04 is fairly low. Coupled with high relative strength in the previous twelve months, a low P/S ratio is one of the most potent combinations of investment criteria. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Delek US Holdings (NYSE:DK) has increased to a share price of $27.19, a 3.5% rise. So far today, the company's volume is 193,397 shares, 0.4 times its average over the past three months. Volume is an important indicator because it indicates how significant a price shift is. 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 debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for DK is 65.4%, which is relatively high. This means that the company's cash flow is significantly impacted by paying off principal and interest and that any negative change in performance or rise in interest rates could result in default. 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 $68.24, CARBO Ceramics (NYSE:CRR) has slipped 3%. So far today, 138,317 shares of the company's stock have changed hands. 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. 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. 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. CRR has a P/E ratio of 12.3, in line with the industry average. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
The Energy sector (XLE) is currently lagging behind the overall market, down 1%, and its current biggest movers are:
| Company | Market Cap | Percentage Change |
| Consol (NYSE:CNX) | $6.87 billion | -4.8% |
| Walter Energy (NYSE:WLT) | $2.04 billion | -4.7% |
| InterOil Corporation (NYSE:IOC) | $3.84 billion | -4% |
| Noble (NYSE:NE) | $9.63 billion | -3.7% |
| Global (NYSE:GLP) | $689.6 million | +3.6% |
| Delek US Holdings (NYSE:DK) | $1.54 billion | +3.5% |
| CARBO Ceramics (NYSE:CRR) | $1.62 billion | -3% |
After a decline of 4.8%, Consol (NYSE:CNX) has hit a share price of $28.74. This morning, the company is trading a volume of two 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. The P/E ratio for CNX is 11.3, above the industry average of 5.03. 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. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?
Falling 4.7%, Walter Energy (NYSE:WLT) is currently at a share price of $31.17. The company's volume for the day so far is 1.8 million shares, 0.8 times 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. Understanding investment valuation ratios allows an investor to assess the true 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. WLT's capitalization ratio of 50.1% is relatively high. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
InterOil Corporation (NYSE:IOC) is currently trading at a share price of $76.36, a 4% decline. So far today, the company's volume is 330,283 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. 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. IOC has a P/B ratio of 10.42 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high 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: How Buybacks Warps The Price-To-Book Ratio
Increasing 3.6%, Global (NYSE:GLP) is trading at $26.05 per share. So far today, 76,049 shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. 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. GLP's P/S ratio of 0.04 is fairly low. Coupled with high relative strength in the previous twelve months, a low P/S ratio is one of the most potent combinations of investment criteria. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Delek US Holdings (NYSE:DK) has increased to a share price of $27.19, a 3.5% rise. So far today, the company's volume is 193,397 shares, 0.4 times its average over the past three months. Volume is an important indicator because it indicates how significant a price shift is. 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 debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for DK is 65.4%, which is relatively high. This means that the company's cash flow is significantly impacted by paying off principal and interest and that any negative change in performance or rise in interest rates could result in default. 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 $68.24, CARBO Ceramics (NYSE:CRR) has slipped 3%. So far today, 138,317 shares of the company's stock have changed hands. 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. 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. 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. CRR has a P/E ratio of 12.3, in line with the industry average. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=bb38e418a6c47df8c0f515e87d07ab7e
