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O'Reilly Automotive, Inc and More Big Movers in Services on September 13, 2012
The market is currently up, with the Nasdaq increasing 0.3%, the S&P 500 climbing 0.1% and the Dow up 0.2%.
The Services sector (IYC) is up 0.2%, underperforming the market overall. The biggest movers in the sector are currently:
Broker Summary: Charles Schwab Online Brokerage
K12 (NYSE:LRN) is currently trading at $23.12 per share, a 8.1% increase. The company's volume is currently 938,282 shares for the day, 2.4 times its current daily average. The trading volume for a stock indicates the level of investor interest. 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 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. LRN has a fairly low capitalization ratio of 0.2%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Falling 5.2%, Life Time Fitness (NYSE:LTM) is currently at a share price of $46.68. The company's volume for the day so far is 412,728 shares. Yesterday's volume was only 211,691 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. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). LTM has a PEG ratio of 1.22. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
DST Systems (NYSE:DST) is up 4.4% to reach a current price of $54.71 per share. With 330,733 shares changing hands so far today, the company's volume is 2.4 times the average volume over the last three months. 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. 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. 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. DST has a P/B ratio of 2.34 which shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Sears (Nasdaq:SHLD) is trading at $58.51 per share, down 3.9%. This morning, the company is trading a volume of 751,053 shares. Volume is used to evaluate how meaningful the price movement of a stock is. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for SHLD is 0.13, which is relatively low. Low P/S ratios are more attractive than high ratios because this indicates that an investor is paying less for each dollar of sales. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
O'Reilly Automotive, Inc (Nasdaq:ORLY) has decreased to $82.87 per share, a 3.2% fall. So far today, the company's volume is 1.7 million shares, 1.3 times the average daily volume. 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The debt ratio for ORLY is 54.2%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 3.1%, Signet (NYSE:SIG) is trading at $49.78 per share. So far today, the company's volume is 486,341 shares. This is more trading activity than there was yesterday. A stock's volume conveys how excited investors are about it. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). Relative to the industry P/E ratio of 19.91, SIG's 12.3 is low. A low P/E ratio may indicate that the market expects relatively slower earnings growth. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?
Susser (Nasdaq:SUSS) has moved up 2.6% and is currently trading at $37.81 per share. So far today, the company's volume is 105,546 shares, in keeping with its current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. The D/E ratio for SUSS is 123%. 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 is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
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. 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 Services sector (IYC) is up 0.2%, underperforming the market overall. The biggest movers in the sector are currently:
| Company | Market Cap | Percentage Change |
| K12 (NYSE:LRN) | $838 million | +8.1% |
| Life Time Fitness (NYSE:LTM) | $2.14 billion | -5.2% |
| DST Systems (NYSE:DST) | $2.36 billion | +4.4% |
| Sears (Nasdaq:SHLD) | $6.48 billion | -3.9% |
| O\'Reilly Automotive, Inc (Nasdaq:ORLY) | $10.18 billion | -3.2% |
| Signet (NYSE:SIG) | $3.91 billion | +3.1% |
| Susser (Nasdaq:SUSS) | $773.1 million | +2.6% |
K12 (NYSE:LRN) is currently trading at $23.12 per share, a 8.1% increase. The company's volume is currently 938,282 shares for the day, 2.4 times its current daily average. The trading volume for a stock indicates the level of investor interest. 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 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. LRN has a fairly low capitalization ratio of 0.2%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Falling 5.2%, Life Time Fitness (NYSE:LTM) is currently at a share price of $46.68. The company's volume for the day so far is 412,728 shares. Yesterday's volume was only 211,691 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. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). LTM has a PEG ratio of 1.22. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
DST Systems (NYSE:DST) is up 4.4% to reach a current price of $54.71 per share. With 330,733 shares changing hands so far today, the company's volume is 2.4 times the average volume over the last three months. 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. 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. 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. DST has a P/B ratio of 2.34 which shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Using The Price-To-Book Ratio To Evaluate Companies
O'Reilly Automotive, Inc (Nasdaq:ORLY) has decreased to $82.87 per share, a 3.2% fall. So far today, the company's volume is 1.7 million shares, 1.3 times the average daily volume. 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The debt ratio for ORLY is 54.2%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 3.1%, Signet (NYSE:SIG) is trading at $49.78 per share. So far today, the company's volume is 486,341 shares. This is more trading activity than there was yesterday. A stock's volume conveys how excited investors are about it. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). Relative to the industry P/E ratio of 19.91, SIG's 12.3 is low. A low P/E ratio may indicate that the market expects relatively slower earnings growth. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?
Susser (Nasdaq:SUSS) has moved up 2.6% and is currently trading at $37.81 per share. So far today, the company's volume is 105,546 shares, in keeping with its current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. The D/E ratio for SUSS is 123%. 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 is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
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. 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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