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Oil and Gas Operations Stocks, Including CNOOC Limited, Making Big Moves on September 27, 2012
The Nasdaq is up 0.4%, the S&P 500 has moved up 0.3% and the Dow has remained steady so far today.
The Oil and Gas Operations sector (DIG) has climbed 1.3% overall, and these are the biggest movers in the sector so far:
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After rising 4.1%, Gulfport (Nasdaq:GPOR) is currently trading at a share price of $30.53. At 460,750 shares, the company's volume so far today is 0.3 times its current daily average. Volume is used to evaluate how meaningful the price movement of a stock is. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. GPOR's stock is trading for more than its book value with a P/B ratio of 2.45. 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. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
EQT (NYSE:EQT) has increased to a share price of $58.78, a 3.2% rise. This morning, the company is trading a volume of 429,815 shares. A stock's volume conveys how excited investors are about it. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. The dividend yield for EQT is 1.5%, which is on the low end. If you are an income investor, this stock may not be attractive to you. A higher dividend yield may indicate a risk of a fall in the price of the security, or a cut in the level of dividend payments, either of which would have the effect of dropping future returns. SEE: Investment Valuation Ratios: Dividend Yield
SM (NYSE:SM) is at $51.43 per share after an increase of 3.2%. With 372,094 shares changing hands so far today, the company's volume is consistent with its average over the last three months. 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 can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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 SM is 2.19, which is relatively high. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
Range (NYSE:RRC) is currently trading at $69.69 per share, a 2.9% increase. So far today, the company's volume is 560,156 shares. This is a sign that there will be less trading activity than there was yesterday. Volume indicates the level of interest that investors have in a company at its current price. Valuation ratios allow the investor to make a quick determination as to a company's investment value. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. RRC has a P/E ratio of 248.4, high compared to the industry average of 17.26. This could mean that the market is expecting big things over the next few months or years. 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: The P/E Ratio: A Good Market-Timing Indicator
CNOOC Limited (NYSE:CEO) has moved up 2.4% and is currently trading at $203.54 per share. The company's volume is currently 51,792 shares for the day, 0.4 times the average daily volume. 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 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-equity (D/E) ratio is a leverage ratio. CEO has a low debt-equity ratio of 19%. This shows that the company's assets are financed primarily through equity. 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.
EV Energy Partners (Nasdaq:EVEP) has risen 2.2% to hit a current price of $62.21 per share. So far today, 33,769 shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. EVEP has a capitalization ratio of 38.5%. 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.
Concho Resources (NYSE:CXO) is up 1.9% to reach a current price of $94.76 per share. The company's volume for the day so far is 290,605 shares, 0.3 times the average volume over the last three months. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. 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. CXO's debt ratio is 56.7%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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 Oil and Gas Operations sector (DIG) has climbed 1.3% overall, and these are the biggest movers in the sector so far:
| Company | Market Cap | Percentage Change |
| Gulfport (Nasdaq:GPOR) | $1.63 billion | +4.1% |
| EQT (NYSE:EQT) | $8.52 billion | +3.2% |
| SM (NYSE:SM) | $3.25 billion | +3.2% |
| Range (NYSE:RRC) | $11.01 billion | +2.9% |
| CNOOC Limited (NYSE:CEO) | $88.76 billion | +2.4% |
| EV Energy Partners (Nasdaq:EVEP) | $2.58 billion | +2.2% |
| Concho Resources (NYSE:CXO) | $9.73 billion | +1.9% |
After rising 4.1%, Gulfport (Nasdaq:GPOR) is currently trading at a share price of $30.53. At 460,750 shares, the company's volume so far today is 0.3 times its current daily average. Volume is used to evaluate how meaningful the price movement of a stock is. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. GPOR's stock is trading for more than its book value with a P/B ratio of 2.45. 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. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
EQT (NYSE:EQT) has increased to a share price of $58.78, a 3.2% rise. This morning, the company is trading a volume of 429,815 shares. A stock's volume conveys how excited investors are about it. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. The dividend yield for EQT is 1.5%, which is on the low end. If you are an income investor, this stock may not be attractive to you. A higher dividend yield may indicate a risk of a fall in the price of the security, or a cut in the level of dividend payments, either of which would have the effect of dropping future returns. SEE: Investment Valuation Ratios: Dividend Yield
SM (NYSE:SM) is at $51.43 per share after an increase of 3.2%. With 372,094 shares changing hands so far today, the company's volume is consistent with its average over the last three months. 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 can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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 SM is 2.19, which is relatively high. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
CNOOC Limited (NYSE:CEO) has moved up 2.4% and is currently trading at $203.54 per share. The company's volume is currently 51,792 shares for the day, 0.4 times the average daily volume. 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 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-equity (D/E) ratio is a leverage ratio. CEO has a low debt-equity ratio of 19%. This shows that the company's assets are financed primarily through equity. 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.
EV Energy Partners (Nasdaq:EVEP) has risen 2.2% to hit a current price of $62.21 per share. So far today, 33,769 shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. EVEP has a capitalization ratio of 38.5%. 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.
Concho Resources (NYSE:CXO) is up 1.9% to reach a current price of $94.76 per share. The company's volume for the day so far is 290,605 shares, 0.3 times the average volume over the last three months. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. 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. CXO's debt ratio is 56.7%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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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