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Noble Energy Among Energy's Biggest Movers on September 6, 2012
The market is doing well so far today. The Nasdaq has risen 1.9%; the S&P 500 has moved up 1.8%; and the Dow is trading up 1.7%. 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.
Outperforming the market overall, the Energy sector (XLE) is up 2.2% and its biggest movers so far today are:
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Cimarex (NYSE:XEC) is up 5.8% to reach a current price of $59.87 per share. This morning, 261,523 shares have been traded, which is likely to result in less activity than yesterday's volume of one million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. 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. The capitalizion ratio of 18.6% is on the low end. Investors generally consider a company with low debt and high equity levels is a good quality investment. 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.
After rising 4.8%, Clayton Williams Energy (Nasdaq:CWEI) is currently trading at a share price of $51.56. So far today, the company's volume is 16,480 shares. This is in keeping with the average volume over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). The P/E ratio for CWEI is 6.0, below the industry average of 20.32. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. 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
Enbridge Energy Partners (NYSE:EEP) is currently trading at a share price of $28.53, a 4% decline. The company is currently trading a volume of 9.4 million 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. 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. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. EEP has a P/B ratio of 1.67 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Noble Energy (NYSE:NBL) is up 3.9% to reach a current price of $89.53 per share. At 285,501 shares, the company's volume so far today is 0.3 times its current daily average. If a stock price makes a big move up or down, volume lets us know the significance of that 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. NBL has a dividend yield of 1%, which is fairly low. This may indicate that the company's stock is overpriced. To calculate the dividend yield, divide the level of dividends by the stock price; the higher the yield, the more attractive the security. SEE: Guide To Stock-Picking Strategies: Income Investing
BreitBurn Energy Partners (Nasdaq:BBEP) is down 3.8% to reach $18.54 per share. The company's volume is currently 5.5 million shares. Yesterday, volume was only 408,347 shares. The trading volume for a stock indicates the level of investor interest. 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. 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. The P/S ratio for BBEP is a high 2.86. 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.
Concho Resources (NYSE:CXO) is currently trading at $91.88 per share, a 3.7% increase. At 303,269 shares, the company's volume so far today is in keeping with the average volume over the past three months. 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 debt ratio shows the proportion of assets that a company is financing through debt. CXO has a debt ratio of 56.7%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 3.6%, Pioneer Natural Res (NYSE:PXD) is trading at $99.52 per share. The company's volume for the day so far is 758,386 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. 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. PXD's D/E ratio is 57%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
Outperforming the market overall, the Energy sector (XLE) is up 2.2% and its biggest movers so far today are:
| Company | Market Cap | Percentage Change |
| Cimarex (NYSE:XEC) | $4.87 billion | +5.8% |
| Clayton Williams Energy (Nasdaq:CWEI) | $598.6 million | +4.8% |
| Enbridge Energy Partners (NYSE:EEP) | $7.07 billion | -4% |
| Noble Energy (NYSE:NBL) | $15.33 billion | +3.9% |
| BreitBurn Energy Partners (Nasdaq:BBEP) | $1.33 billion | -3.8% |
| Concho Resources (NYSE:CXO) | $9.24 billion | +3.7% |
| Pioneer Natural Res (NYSE:PXD) | $11.81 billion | +3.6% |
Cimarex (NYSE:XEC) is up 5.8% to reach a current price of $59.87 per share. This morning, 261,523 shares have been traded, which is likely to result in less activity than yesterday's volume of one million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. 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. The capitalizion ratio of 18.6% is on the low end. Investors generally consider a company with low debt and high equity levels is a good quality investment. 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.
After rising 4.8%, Clayton Williams Energy (Nasdaq:CWEI) is currently trading at a share price of $51.56. So far today, the company's volume is 16,480 shares. This is in keeping with the average volume over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). The P/E ratio for CWEI is 6.0, below the industry average of 20.32. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. 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
Enbridge Energy Partners (NYSE:EEP) is currently trading at a share price of $28.53, a 4% decline. The company is currently trading a volume of 9.4 million 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. 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. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. EEP has a P/B ratio of 1.67 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
BreitBurn Energy Partners (Nasdaq:BBEP) is down 3.8% to reach $18.54 per share. The company's volume is currently 5.5 million shares. Yesterday, volume was only 408,347 shares. The trading volume for a stock indicates the level of investor interest. 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. 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. The P/S ratio for BBEP is a high 2.86. 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.
Concho Resources (NYSE:CXO) is currently trading at $91.88 per share, a 3.7% increase. At 303,269 shares, the company's volume so far today is in keeping with the average volume over the past three months. 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 debt ratio shows the proportion of assets that a company is financing through debt. CXO has a debt ratio of 56.7%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 3.6%, Pioneer Natural Res (NYSE:PXD) is trading at $99.52 per share. The company's volume for the day so far is 758,386 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. 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. PXD's D/E ratio is 57%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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
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