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Oil and Gas Operations Stocks, Including Range, Making Big Moves on October 5, 2012
The Nasdaq has fallen 0.2%, the S&P 500 is trading up 0.3% and the Dow has risen 0.4% so far today.
The Oil and Gas Operations sector (DIG) is up 0.1% so far today and here are its biggest movers:
Broker Summary: TD Ameritrade Thinkorswim
Rising 4.3%, Delek US Holdings (NYSE:DK) is currently trading at $27.14 per share. At 395,893 shares, the company's volume so far today is 0.7 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. DK has a high debt ratio of 65.4%. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Alon USA Energy (NYSE:ALJ) has risen 3.3% and is currently trading at $14.31 per share. So far today, 1.4 million shares of the company's stock have changed hands. This is more trading activity than there was yesterday. If a stock price moves on high volume, this means that the change is a significant one. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt-equity (D/E) ratio is a leverage ratio. ALJ's D/E ratio of 246% is on the high side. Companies in capital-intensive industries usually have higher D/E ratios because they need to buy more property, plants, and equipment to operate. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
At $52.38, SM (NYSE:SM) has slipped 2.7%. At 340,643 shares, the company's volume so far today is 0.3 times its average over the past three months. 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. SM has a capitalization ratio of 43.2%. 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.
Range (NYSE:RRC) has decreased to $68.83 per share, a 2.5% fall. The company is currently trading a volume of 432,205 shares. If a stock price moves on high volume, this means that the change is a significant one. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. RRC's P/E ratio of 261.4 is above the industry average of 16.3. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. 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?
Falling 2.3%, Clayton Williams Energy (Nasdaq:CWEI) is currently at a share price of $48.99. At 15,582 shares, the company's volume so far today is 0.2 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 price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. The P/B ratio for CWEI is 1.55, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. 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: Using The Price-To-Book Ratio To Evaluate Companies
InterOil Corporation (NYSE:IOC) is trading at $77.41 per share, down 1.9%. So far today, the company's volume is 91,339 shares. At this rate, trading activity will likely be down from yesterday when 314,129 shares 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. 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. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for IOC is 2.79, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Baytex Energy Corp (NYSE:BTE) has fallen 1.8% and is currently trading at $47.94 per share. So far today, the company's volume is 60,677 shares, 0.4 times the average volume over the last three months. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 is calculated by dividing total liabilities by total assets. BTE's debt ratio is 51.2%. 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.
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 Oil and Gas Operations sector (DIG) is up 0.1% so far today and here are its biggest movers:
| Company | Market Cap | Percentage Change |
| Delek US Holdings (NYSE:DK) | $1.52 billion | +4.3% |
| Alon USA Energy (NYSE:ALJ) | $783.2 million | +3.3% |
| SM (NYSE:SM) | $3.51 billion | -2.7% |
| Range (NYSE:RRC) | $11.47 billion | -2.5% |
| Clayton Williams Energy (Nasdaq:CWEI) | $610 million | -2.3% |
| InterOil Corporation (NYSE:IOC) | $3.81 billion | -1.9% |
| Baytex Energy Corp (NYSE:BTE) | $5.89 billion | -1.8% |
Rising 4.3%, Delek US Holdings (NYSE:DK) is currently trading at $27.14 per share. At 395,893 shares, the company's volume so far today is 0.7 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. DK has a high debt ratio of 65.4%. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Alon USA Energy (NYSE:ALJ) has risen 3.3% and is currently trading at $14.31 per share. So far today, 1.4 million shares of the company's stock have changed hands. This is more trading activity than there was yesterday. If a stock price moves on high volume, this means that the change is a significant one. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt-equity (D/E) ratio is a leverage ratio. ALJ's D/E ratio of 246% is on the high side. Companies in capital-intensive industries usually have higher D/E ratios because they need to buy more property, plants, and equipment to operate. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
At $52.38, SM (NYSE:SM) has slipped 2.7%. At 340,643 shares, the company's volume so far today is 0.3 times its average over the past three months. 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. SM has a capitalization ratio of 43.2%. 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.
Range (NYSE:RRC) has decreased to $68.83 per share, a 2.5% fall. The company is currently trading a volume of 432,205 shares. If a stock price moves on high volume, this means that the change is a significant one. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. RRC's P/E ratio of 261.4 is above the industry average of 16.3. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. 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?
Falling 2.3%, Clayton Williams Energy (Nasdaq:CWEI) is currently at a share price of $48.99. At 15,582 shares, the company's volume so far today is 0.2 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 price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. The P/B ratio for CWEI is 1.55, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. 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: Using The Price-To-Book Ratio To Evaluate Companies
InterOil Corporation (NYSE:IOC) is trading at $77.41 per share, down 1.9%. So far today, the company's volume is 91,339 shares. At this rate, trading activity will likely be down from yesterday when 314,129 shares 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. 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. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for IOC is 2.79, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Baytex Energy Corp (NYSE:BTE) has fallen 1.8% and is currently trading at $47.94 per share. So far today, the company's volume is 60,677 shares, 0.4 times the average volume over the last three months. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 is calculated by dividing total liabilities by total assets. BTE's debt ratio is 51.2%. 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.
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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