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Pharmacyclics Among Healthcare's Biggest Movers on August 28, 2012
On a bad day for the market, the Nasdaq has slipped 0.1%, the S&P 500 is trading down 0.1% and the Dow has decreased 0.1%. The healthcare sector is the category of stocks relating to medical and healthcare goods or services. This sector includes hospital management firms, health maintenance organizations (HMOs), biotechnology and a variety of medical products. Stocks in the healthcare sector are often considered to be defensive because the products and services are essential. Even during economic downturns, people will still require medical aid and medicine to overcome illness. Having a consistent demand for goods and services makes this sector less sensitive to business cycle fluctuations.
The Healthcare sector (XLV) is down 0.1%, outperforming the market overall. Currently, the biggest movers in the sector are:
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Increasing 4%, Cyberonics (Nasdaq:CYBX) is trading at $47.13 per share. So far today, the company's volume is 755,513 shares, 4.7 times the average daily volume. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. CYBX has a high P/S ratio of 4.83. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Rising 3.9%, MAKO (Nasdaq:MAKO) is currently trading at $15.09 per share. This morning, the company is trading a volume of 514,426 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. 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. MAKO has a debt ratio of 22.7%, which is fairly low. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Alnylam Pharmaceuticals (Nasdaq:ALNY) is currently trading at $18.38 per share, a 3.6% increase. The company's volume is currently 208,785 shares for the day, whereas yesterday, volume was only 84,281 shares. Volume is an important indicator because it indicates how significant a price shift is. 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 price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. ALNY has a P/B ratio of 5.11 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio
After rising 2.9%, Pacira Pharmaceuticals (Nasdaq:PCRX) is currently trading at a share price of $18.40. This morning, the company is trading a volume of 93,841 shares. This is 0.4 times its average volume over the past three months. Volume is used to evaluate how meaningful the price movement of a stock is. 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 price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for PCRX is a high 18.44. This could be a good sign if the share price increases. 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.
After rising 2.8%, Acorda Therapeutics (Nasdaq:ACOR) is currently trading at a share price of $23.71. So far today, the company's volume is 150,943 shares, 0.7 times its 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. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt ratio is calculated by dividing total liabilities by total assets. ACOR has a low debt ratio of 43%. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. 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.
Falling 2.3%, Pharmacyclics (Nasdaq:PCYC) is currently at a share price of $66.20. So far today, 326,949 shares have changed hands. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. P/E ratio for PCYC is 335.3. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Can Investors Trust the P/E Ratio?
Theravance (Nasdaq:THRX) is at $27.43 per share after an increase of 1.9%. At 80,773 shares, the company's volume so far today is on pace to finish the day below yesterday's volume of 415,446 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. THRX's stock is trading for more than its book value with a P/B ratio of 14.07. 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: Investment Valuation Ratios: Price/Book Value Ratio
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 Healthcare sector (XLV) is down 0.1%, outperforming the market overall. Currently, the biggest movers in the sector are:
| Company | Market Cap | Percentage Change |
| Cyberonics (Nasdaq:CYBX) | $1.25 billion | +4% |
| MAKO (Nasdaq:MAKO) | $619.7 million | +3.9% |
| Alnylam Pharmaceuticals (Nasdaq:ALNY) | $926.8 million | +3.6% |
| Pacira Pharmaceuticals (Nasdaq:PCRX) | $579.7 million | +2.9% |
| Acorda Therapeutics (Nasdaq:ACOR) | $924.6 million | +2.8% |
| Pharmacyclics (Nasdaq:PCYC) | $4.68 billion | -2.3% |
| Theravance (Nasdaq:THRX) | $2.61 billion | +1.9% |
Increasing 4%, Cyberonics (Nasdaq:CYBX) is trading at $47.13 per share. So far today, the company's volume is 755,513 shares, 4.7 times the average daily volume. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. CYBX has a high P/S ratio of 4.83. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Rising 3.9%, MAKO (Nasdaq:MAKO) is currently trading at $15.09 per share. This morning, the company is trading a volume of 514,426 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. 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. MAKO has a debt ratio of 22.7%, which is fairly low. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Alnylam Pharmaceuticals (Nasdaq:ALNY) is currently trading at $18.38 per share, a 3.6% increase. The company's volume is currently 208,785 shares for the day, whereas yesterday, volume was only 84,281 shares. Volume is an important indicator because it indicates how significant a price shift is. 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 price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. ALNY has a P/B ratio of 5.11 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio
After rising 2.9%, Pacira Pharmaceuticals (Nasdaq:PCRX) is currently trading at a share price of $18.40. This morning, the company is trading a volume of 93,841 shares. This is 0.4 times its average volume over the past three months. Volume is used to evaluate how meaningful the price movement of a stock is. 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 price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for PCRX is a high 18.44. This could be a good sign if the share price increases. 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.
After rising 2.8%, Acorda Therapeutics (Nasdaq:ACOR) is currently trading at a share price of $23.71. So far today, the company's volume is 150,943 shares, 0.7 times its 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. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt ratio is calculated by dividing total liabilities by total assets. ACOR has a low debt ratio of 43%. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. 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.
Falling 2.3%, Pharmacyclics (Nasdaq:PCYC) is currently at a share price of $66.20. So far today, 326,949 shares have changed hands. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. P/E ratio for PCYC is 335.3. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Can Investors Trust the P/E Ratio?
Theravance (Nasdaq:THRX) is at $27.43 per share after an increase of 1.9%. At 80,773 shares, the company's volume so far today is on pace to finish the day below yesterday's volume of 415,446 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. THRX's stock is trading for more than its book value with a P/B ratio of 14.07. 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: Investment Valuation Ratios: Price/Book Value Ratio
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
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