Free Annual Reports
Oil and Gas Operations Sector's Biggest Movers for July 19, 2012
The morning has been good for the market. The Nasdaq is trading up 1.1%; the S&P 500 has moved up 0.3%; and the Dow has risen 0.3%.
The Oil and Gas Operations sector (DIG) is up 0.2%, underperforming the market overall. The biggest movers in the sector are currently:
Software Summary: Finviz.com Stock Screener
Oasis Petroleum (NYSE:OAS) has increased to a share price of $27.98, a 4.7% rise. The company's volume for the day so far is 453,610 shares. This is 0.5 times the current daily average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. OAS' gross profit margin of 90% is fairly high. A high gross profit margin generally means that the company can make a reasonable profit on sales, provided that overhead costs do not increase. Tracking net profit margin over time for a single company can be a valuable tool for seeing how a business is developing. With a net profit margin of 25%, the company has a high one compared to its gross profit margin. Companies with high net profit margins have a bigger cushion to protect themselves during the hard times. Investors in growth stocks or short-term traders may be less interested in the operating margin ratio. OAS' operating profit margin is 42%.
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. 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. OAS has a high P/S ratio of 6.99. 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.
Continental Resources (NYSE:CLR) has risen 4.1% and is currently trading at $75.43 per share. This morning, 916,088 shares have been traded, which is less activity than yesterday's volume of two million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. CLR's gross profit margin of 87.4% is on the high side. This means that the company will have a lot of money left over to spend on other business operations, such as research and development or marketing. Relative to its gross profit margin, CLR's operating profit margin of 34.3% and net profit margin of 33.2% are high.
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 debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. CLR has a debt ratio of 63.6%, which is on the high side. 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.
Currently trading at $36.27 per share, HollyFrontier (NYSE:HFC) has fallen 3.9%. This morning, the company is trading a volume of 1.3 million 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. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. HFC has a low gross profit margin of 12.8%. Investors should track gross profit margin ratios over several years in order to see if earnings are consistent, growing or declining. HFC has an operating profit margin of 8.5% and a net profit margin of 6.7%, both low compared to its gross profit margin.
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. 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. The debt-equity ratio of 25% is relatively low. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Baytex Energy Corp (NYSE:BTE) has moved up 3.5% and is currently trading at $43.14 per share. The company's volume is currently 146,612 shares for the day, 0.6 times the current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Margin analysis is a great way to understand the profitability of companies. The gross profit margin for BTE is 48.6%. Operating margin provides a measure of a company's ability to pay its fixed costs such as interest on debt, particular if its business were to decline in the future. BTE has an operating profit margin of 20.9%. Net profit margin comes as close as possible to summing-up in a single figure how effectively managers run the business. Net margin is 19.3%.
Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). BTE's P/E ratio of 18.7 is above the industry average of 8.52. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
Increasing 3.4%, Newfield Exploration (NYSE:NFX) is trading at $32.54 per share. This morning, the company's volume is 1.6 million shares. This is 0.6 times the average daily volume. Volume indicates the level of interest that investors have in a company at its current price. Margin ratios highlight companies that are worth further examination. NFX has a gross profit margin of 68.2%. All else being equal, investors should feel more confident investing in a company with a high operating margin than one with a low operating margin. Operating profit margin for NFX is 29.1%. Comparing net profit margins for companies with similar business models or in similar industries can yield valuable information as to which business is actually performing better. The company's net profit margin is 25.8%.
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 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 capitalization ratio for NFX is 41.9%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Whiting (NYSE:WLL) is up 2.9% to reach a current price of $42.97 per share. At 942,828 shares, the company's volume so far today is while it was 1.6 million shares yesterday. 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. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. WLL's gross profit margin is 71.6%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. WLL's operating profit margin is 27.9%. Net profit margin is calculated by dividing net income by sales; the higher the net profit margin, the better. The company has a net profit margin of 28.3%.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. WLL has a PEG ratio of 0.8. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
At $27.18, Tesoro (NYSE:TSO) has slipped 2.9%. So far today, 1.2 million shares 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. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. TSO has a low gross profit margin of 5.4%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. Compared with its gross profit margin, TSO's operating profit margin of 1.7% and net profit margin of 1.6% are low.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. TSO's stock is trading for more than its book value with a P/B ratio of 1.02. 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. 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: Using The Price-To-Book Ratio To Evaluate Companies
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. 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 Oil and Gas Operations sector (DIG) is up 0.2%, underperforming the market overall. The biggest movers in the sector are currently:
| Company | Market Cap | Percentage Change |
| Oasis Petroleum Inc. (NYSE:OAS) | $2.49 billion | +4.7% |
| Continental Resources, Inc. (NYSE:CLR) | $13.12 billion | +4.1% |
| HollyFrontier Corp (NYSE:HFC) | $7.8 billion | -3.9% |
| Baytex Energy Corp (USA) (NYSE:BTE) | $4.99 billion | +3.5% |
| Newfield Exploration (NYSE:NFX) | $4.24 billion | +3.4% |
| Whiting Petroleum Corporation (NYSE:WLL) | $4.91 billion | +2.9% |
| Tesoro (NYSE:TSO) | $3.93 billion | -2.9% |
Oasis Petroleum (NYSE:OAS) has increased to a share price of $27.98, a 4.7% rise. The company's volume for the day so far is 453,610 shares. This is 0.5 times the current daily average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. OAS' gross profit margin of 90% is fairly high. A high gross profit margin generally means that the company can make a reasonable profit on sales, provided that overhead costs do not increase. Tracking net profit margin over time for a single company can be a valuable tool for seeing how a business is developing. With a net profit margin of 25%, the company has a high one compared to its gross profit margin. Companies with high net profit margins have a bigger cushion to protect themselves during the hard times. Investors in growth stocks or short-term traders may be less interested in the operating margin ratio. OAS' operating profit margin is 42%.
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. 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. OAS has a high P/S ratio of 6.99. 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.
Continental Resources (NYSE:CLR) has risen 4.1% and is currently trading at $75.43 per share. This morning, 916,088 shares have been traded, which is less activity than yesterday's volume of two million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. CLR's gross profit margin of 87.4% is on the high side. This means that the company will have a lot of money left over to spend on other business operations, such as research and development or marketing. Relative to its gross profit margin, CLR's operating profit margin of 34.3% and net profit margin of 33.2% are high.
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 debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. CLR has a debt ratio of 63.6%, which is on the high side. 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.
Currently trading at $36.27 per share, HollyFrontier (NYSE:HFC) has fallen 3.9%. This morning, the company is trading a volume of 1.3 million 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. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. HFC has a low gross profit margin of 12.8%. Investors should track gross profit margin ratios over several years in order to see if earnings are consistent, growing or declining. HFC has an operating profit margin of 8.5% and a net profit margin of 6.7%, both low compared to its gross profit margin.
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. 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. The debt-equity ratio of 25% is relatively low. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Baytex Energy Corp (NYSE:BTE) has moved up 3.5% and is currently trading at $43.14 per share. The company's volume is currently 146,612 shares for the day, 0.6 times the current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Margin analysis is a great way to understand the profitability of companies. The gross profit margin for BTE is 48.6%. Operating margin provides a measure of a company's ability to pay its fixed costs such as interest on debt, particular if its business were to decline in the future. BTE has an operating profit margin of 20.9%. Net profit margin comes as close as possible to summing-up in a single figure how effectively managers run the business. Net margin is 19.3%.
Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). BTE's P/E ratio of 18.7 is above the industry average of 8.52. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
Increasing 3.4%, Newfield Exploration (NYSE:NFX) is trading at $32.54 per share. This morning, the company's volume is 1.6 million shares. This is 0.6 times the average daily volume. Volume indicates the level of interest that investors have in a company at its current price. Margin ratios highlight companies that are worth further examination. NFX has a gross profit margin of 68.2%. All else being equal, investors should feel more confident investing in a company with a high operating margin than one with a low operating margin. Operating profit margin for NFX is 29.1%. Comparing net profit margins for companies with similar business models or in similar industries can yield valuable information as to which business is actually performing better. The company's net profit margin is 25.8%.
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 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 capitalization ratio for NFX is 41.9%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Whiting (NYSE:WLL) is up 2.9% to reach a current price of $42.97 per share. At 942,828 shares, the company's volume so far today is while it was 1.6 million shares yesterday. 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. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. WLL's gross profit margin is 71.6%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. WLL's operating profit margin is 27.9%. Net profit margin is calculated by dividing net income by sales; the higher the net profit margin, the better. The company has a net profit margin of 28.3%.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. WLL has a PEG ratio of 0.8. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
At $27.18, Tesoro (NYSE:TSO) has slipped 2.9%. So far today, 1.2 million shares 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. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. TSO has a low gross profit margin of 5.4%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. Compared with its gross profit margin, TSO's operating profit margin of 1.7% and net profit margin of 1.6% are low.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. TSO's stock is trading for more than its book value with a P/B ratio of 1.02. 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. 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: Using The Price-To-Book Ratio To Evaluate Companies
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. 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
