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Oil and Gas Operations Stocks Making Big Moves on June 26, 2012
After the morning's trading, the Nasdaq has moved up 0.2%, the S&P 500 is trading up 0.1% and the Dow has decreased 0.1%.
The Oil and Gas Operations sector (DIG) has remained steady overall, and these are the biggest movers in the sector so far:
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Falling 4.4%, Solazyme (Nasdaq:SZYM) is currently at a share price of $12.93. The company's volume is currently 176,841 shares for the day, 0.2 times its current daily average. Volume is an important indicator because it indicates how significant a price shift is. Margin analysis is a great way to understand the profitability of companies. SZYM has a negative operating margin of -126.2%. This means that the company came in with a net operating loss in the most recent quarter.
Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. SZYM has a P/B ratio of 3.4 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. 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: How Buybacks Warps The Price-To-Book Ratio
At $22.60, NGL Energy (NYSE:NGL) has slipped 3.8%. The company is trading at a volume of 8,785 shares. This is less trading activity than there was yesterday. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. NGL has a low gross profit margin of 7.3%. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Operating margin for NGL is 3.8% and net margin is 0.6%, both low relative to its gross margin.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. NGL has a low P/S ratio of 0.46. The lower the P/S ratio, the more reasonably price the stock, all else being equal. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Nexen Inc (NYSE:NXY) is up 3.3% to reach a current price of $15.86 per share. So far today, the company's volume is 1.2 million shares, 0.5 times the average volume over the last three months. The trading volume for a stock indicates the level of investor interest. 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. NXY's gross profit margin is 37.2%. Operating profit measures how much cash the business throws off, and some consider it a more reliable measure of profitability since it is harder to manipulate with accounting tricks than net earnings. NXY has an operating profit margin of 35.9%, which is low relative to its gross profit margin. Net profit margins are those generated from all phases of a business, including taxes. The company's net profit margin is 10.3%.
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. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. NXY's debt ratio is 56.5%. 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.
Sandridge Mississippian Trust (NYSE:SDT) has risen 3.3% to hit a current price of $25.05 per share. This morning, the company is trading a volume of 126,232 shares. Volume indicates the level of interest that investors have in a company at its current price. 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. SDT has a high dividend yield of 13%. This could be a sign that the company is a "dividend trap" as companies with high dividends can be risky investments. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Dividend Yield For The Downturn
After a decline of 2.6%, Chesapeake Energy (NYSE:CHK) has hit a share price of $16.59. The company's volume is currently 10.8 million shares for the day, 0.4 times the current daily average. If a stock price moves on high volume, this means that the change is a significant one. Profit-margin ratios help us to keep score, as measured over time, of management's ability to generate profits and manage costs and expenses. There are three key profit-margin ratios: gross profit margin, operating profit margin and net profit margin. CHK has a gross profit margin of 70.3%. Compared with its gross profit margin, CHK's operating profit margin of 0.2% and net profit margin of 15.1% are high.
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. 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. CHK's capitalization ratio is 44.2%. 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.
After rising 2.4%, Global (NYSE:GLP) is currently trading at a share price of $20.86. So far today, the company's volume is 7,075 shares. Yesterday, 80,814 shares changed hands. 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 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. 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. GLP has a low gross profit margin of 1.6%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. Relative to its gross profit margin, GLP's operating profit margin of 0.2% and net profit margin of 0.1% are low.
Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. GLP has a D/E ratio of 239%, which is relatively high. This shows that the company's assets are financed primarily through debt. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Newfield Exploration (NYSE:NFX) is currently trading at a share price of $25.22, a 2.3% decline. At 1.1 million shares, the company's volume so far today is 0.4 times the current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. NFX's gross profit margin is 68.2%. 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. NFX has an operating profit margin of 29.1%. While ratios such as price/earnings (P/E) or price/book value look at the relative attractiveness of a stock, the net profit margin ratio focuses on company performance rather that stock market valuation. Net profit margin for the company is 25.8%.
Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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. Relative to the industry P/E ratio of 21.35, NFX's 5.3 is low. 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 or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Profit With The Power Of Price-To-Earnings
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 Oil and Gas Operations sector (DIG) has remained steady overall, and these are the biggest movers in the sector so far:
| Company | Market Cap | Percentage Change |
| Solazyme Inc (Nasdaq:SZYM) | $816.3 million | -4.4% |
| NGL Energy Partners LP (NYSE:NGL) | $703.9 million | -3.8% |
| Nexen Inc. (USA) (NYSE:NXY) | $8.13 billion | +3.3% |
| Sandridge Mississippian Trust I (NYSE:SDT) | $679.3 million | +3.3% |
| Chesapeake Energy (NYSE:CHK) | $11.28 billion | -2.6% |
| Global Partners LP (NYSE:GLP) | $559 million | +2.4% |
| Newfield Exploration (NYSE:NFX) | $3.48 billion | -2.3% |
Falling 4.4%, Solazyme (Nasdaq:SZYM) is currently at a share price of $12.93. The company's volume is currently 176,841 shares for the day, 0.2 times its current daily average. Volume is an important indicator because it indicates how significant a price shift is. Margin analysis is a great way to understand the profitability of companies. SZYM has a negative operating margin of -126.2%. This means that the company came in with a net operating loss in the most recent quarter.
Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. SZYM has a P/B ratio of 3.4 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. 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: How Buybacks Warps The Price-To-Book Ratio
At $22.60, NGL Energy (NYSE:NGL) has slipped 3.8%. The company is trading at a volume of 8,785 shares. This is less trading activity than there was yesterday. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. NGL has a low gross profit margin of 7.3%. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Operating margin for NGL is 3.8% and net margin is 0.6%, both low relative to its gross margin.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. NGL has a low P/S ratio of 0.46. The lower the P/S ratio, the more reasonably price the stock, all else being equal. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Nexen Inc (NYSE:NXY) is up 3.3% to reach a current price of $15.86 per share. So far today, the company's volume is 1.2 million shares, 0.5 times the average volume over the last three months. The trading volume for a stock indicates the level of investor interest. 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. NXY's gross profit margin is 37.2%. Operating profit measures how much cash the business throws off, and some consider it a more reliable measure of profitability since it is harder to manipulate with accounting tricks than net earnings. NXY has an operating profit margin of 35.9%, which is low relative to its gross profit margin. Net profit margins are those generated from all phases of a business, including taxes. The company's net profit margin is 10.3%.
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. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. NXY's debt ratio is 56.5%. 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.
Sandridge Mississippian Trust (NYSE:SDT) has risen 3.3% to hit a current price of $25.05 per share. This morning, the company is trading a volume of 126,232 shares. Volume indicates the level of interest that investors have in a company at its current price. 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. SDT has a high dividend yield of 13%. This could be a sign that the company is a "dividend trap" as companies with high dividends can be risky investments. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Dividend Yield For The Downturn
After a decline of 2.6%, Chesapeake Energy (NYSE:CHK) has hit a share price of $16.59. The company's volume is currently 10.8 million shares for the day, 0.4 times the current daily average. If a stock price moves on high volume, this means that the change is a significant one. Profit-margin ratios help us to keep score, as measured over time, of management's ability to generate profits and manage costs and expenses. There are three key profit-margin ratios: gross profit margin, operating profit margin and net profit margin. CHK has a gross profit margin of 70.3%. Compared with its gross profit margin, CHK's operating profit margin of 0.2% and net profit margin of 15.1% are high.
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. 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. CHK's capitalization ratio is 44.2%. 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.
After rising 2.4%, Global (NYSE:GLP) is currently trading at a share price of $20.86. So far today, the company's volume is 7,075 shares. Yesterday, 80,814 shares changed hands. 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 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. 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. GLP has a low gross profit margin of 1.6%. This may mean that the company is struggling to control production costs, or that a low amount of earnings is being generated from revenues. Relative to its gross profit margin, GLP's operating profit margin of 0.2% and net profit margin of 0.1% are low.
Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. GLP has a D/E ratio of 239%, which is relatively high. This shows that the company's assets are financed primarily through debt. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Newfield Exploration (NYSE:NFX) is currently trading at a share price of $25.22, a 2.3% decline. At 1.1 million shares, the company's volume so far today is 0.4 times the current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. NFX's gross profit margin is 68.2%. 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. NFX has an operating profit margin of 29.1%. While ratios such as price/earnings (P/E) or price/book value look at the relative attractiveness of a stock, the net profit margin ratio focuses on company performance rather that stock market valuation. Net profit margin for the company is 25.8%.
Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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. Relative to the industry P/E ratio of 21.35, NFX's 5.3 is low. 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 or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Profit With The Power Of Price-To-Earnings
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
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