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Tickers in this Article: KORS, RL, DECK, UA, FOSL, WHR, PII
After the morning's trading, the Nasdaq has increased 0.2%, the S&P 500 has remained steady and the Dow has slipped 0.2%. The consumer cyclical sector is a category of stocks that relies heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment and retail. The category can be further divided into durable and non-durable sections. Durable cyclicals include physical goods such as hardware or vehicles, while non-durables represent items like movies or hotel services. The performance of consumer cyclicals is highly related to the state of the economy. They represent goods and services that are not considered necessities, but luxurious purchases. During contractions or recessions, people have less disposable income to spend on consumer cyclicals. When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.

The Consumer Cyclical sector (XLY) is trading up 0.4% overall, and these are the biggest movers in the sector so far:
CompanyMarket CapPercentage Change
Michael Kors (NYSE:KORS)$9.57 billion+5.7%
Polo Ralph Lauren (NYSE:RL)$13.89 billion+3.9%
Deckers (Nasdaq:DECK)$1.79 billion+3%
Under Armour (NYSE:UA)$5.9 billion+2.6%
Fossil (Nasdaq:FOSL)$5.34 billion+2.3%
Whirlpool (NYSE:WHR)$5.72 billion+2%
Polaris Industries (NYSE:PII)$5.15 billion+1.5%
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After rising 5.7%, Michael Kors (NYSE:KORS) is currently trading at a share price of $52.34. So far today, the company's volume is 2.9 million shares. This is on pace to reach yesterday's trading volume of 6.8 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. KORS has a low debt-equity ratio of 5%. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. 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.

Polo Ralph Lauren (NYSE:RL) has risen 3.9% to hit a current price of $158.38 per share. So far today, the company's volume is 655,645 shares, in line with the current daily average. 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. 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. RL has a low debt ratio of 33.2%. 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.

Deckers (Nasdaq:DECK) has increased to a share price of $49.86, a 3% rise. This morning, the company is trading a volume of 1.1 million shares. Volume indicates the level of interest that investors have in a company at its current price. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. Relative to the industry P/E ratio of 23.33, DECK's 9.9 is low. A low P/E ratio may indicate that the market expects relatively slower earnings growth. 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

Increasing 2.6%, Under Armour (NYSE:UA) is trading at $57.96 per share. So far today, the company's volume is 774,284 shares, consistent with its average over the last three months. 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. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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. The capitalizion ratio of 4.4% is on the low end. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.

After an increase of 2.3%, Fossil (Nasdaq:FOSL) has reached a current price of $89.85. The company is trading at a volume of 687,475 shares. This is about the same trading activity as 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. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. FOSL's stock is trading for more than its book value with a P/B ratio of 4.83. This may be a sign that the company is overvalued. 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

Whirlpool (NYSE:WHR) has risen 2% and is currently trading at $75.29 per share. The company's volume is currently 643,020 shares for the day, in line with the current daily average. If a stock price moves on high volume, this means that the change is a significant one. 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. Dividend yield measures the income that a stock will generate for an investor. Dividend yield for WHR is 2.7%. 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: Due Diligence On Dividends

Polaris Industries (NYSE:PII) has moved up 1.5% and is currently trading at $76.30 per share. The company is currently trading a volume of 270,826 shares. The trading volume for a stock indicates the level of investor interest. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. PII's P/S ratio of 1.67 is on the high side. This could be a good sign if the share price increases. 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.

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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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