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Regeneron Pharmaceuticals Among Healthcare's Biggest Movers on August 23, 2012
The market is having a bad day so far. The Nasdaq has slipped 0.2%; the S&P 500 has decreased 0.4%; and the Dow is trading down 0.6%. 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.
As with the overall market, the Healthcare sector has shown little movement, but here are its current biggest movers:
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Vanguard Health Systems (NYSE:VHS) has risen 5.9% to hit a current price of $9.99 per share. At 164,236 shares, the company's volume so far today is 3.4 times the average daily volume. 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. A price/sales ratio is derived by dividing stock market price by company sales. VHS has a P/S ratio of 0.12, on the low end. Low P/S ratios are more attractive than high ratios because this indicates that an investor is paying less for each dollar of sales. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
Currently trading at $34.06 per share, Patterson Companies (Nasdaq:PDCO) has fallen 5.2%. The company is currently trading a volume of 1.1 million shares. If a stock price moves on high volume, this means that the change is a significant one. Valuation ratios include 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 debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. PDCO has a low debt ratio of 49.8%. 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.
Bio-Reference Laboratories (Nasdaq:BRLI) has decreased to $28.17 per share, a 4.7% fall. So far today, the company's volume is 92,237 shares, on pace to reach yesterday's volume of 221,650 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. BRLI has a debt-equity ratio of 16%, which is on the low side. This shows that the company's assets are financed primarily through equity. 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.
Regeneron Pharmaceuticals (Nasdaq:REGN) is currently trading at $143.67 per share, a 3.6% increase. This morning, the company is trading a volume of 628,570 shares. This is 1.2 times the current three-month average. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 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. The capitalization ratio for REGN is 32.4%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
ArthroCare (Nasdaq:ARTC) is at $29.30 per share after an increase of 3.2%. At 74,458 shares, the company's volume so far today is in line with the current daily average. High volume indicates a lot of investor interest while low volume indicates the opposite. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. ARTC has a P/B ratio of 2.42 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: How Buybacks Warps The Price-To-Book Ratio
Align Technology (Nasdaq:ALGN) has decreased to $32.85 per share, a 2.8% fall. The company's volume for the day so far is 488,534 shares. 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. P/E ratio for ALGN is 31.9. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Smith & Nephew plc (NYSE:SNN) has risen 1.8% and is currently trading at $52.23 per share. This morning, 29,997 shares have been traded, while it was 114,093 shares yesterday. A stock's volume conveys how excited investors are about it. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. SNN has a high P/S ratio of 2.24. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
As with the overall market, the Healthcare sector has shown little movement, but here are its current biggest movers:
| Company | Market Cap | Percentage Change |
| Vanguard Health Systems (NYSE:VHS) | $725.8 million | +5.9% |
| Patterson Companies (Nasdaq:PDCO) | $3.91 billion | -5.2% |
| Bio-Reference Laboratories (Nasdaq:BRLI) | $818.3 million | -4.7% |
| Regeneron Pharmaceuticals (Nasdaq:REGN) | $13.32 billion | +3.6% |
| ArthroCare (Nasdaq:ARTC) | $787.6 million | +3.2% |
| Align Technology (Nasdaq:ALGN) | $2.75 billion | -2.8% |
| Smith & Nephew plc (NYSE:SNN) | $9.16 billion | +1.8% |
Vanguard Health Systems (NYSE:VHS) has risen 5.9% to hit a current price of $9.99 per share. At 164,236 shares, the company's volume so far today is 3.4 times the average daily volume. 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. A price/sales ratio is derived by dividing stock market price by company sales. VHS has a P/S ratio of 0.12, on the low end. Low P/S ratios are more attractive than high ratios because this indicates that an investor is paying less for each dollar of sales. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
Currently trading at $34.06 per share, Patterson Companies (Nasdaq:PDCO) has fallen 5.2%. The company is currently trading a volume of 1.1 million shares. If a stock price moves on high volume, this means that the change is a significant one. Valuation ratios include 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 debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. PDCO has a low debt ratio of 49.8%. 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.
Bio-Reference Laboratories (Nasdaq:BRLI) has decreased to $28.17 per share, a 4.7% fall. So far today, the company's volume is 92,237 shares, on pace to reach yesterday's volume of 221,650 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. BRLI has a debt-equity ratio of 16%, which is on the low side. This shows that the company's assets are financed primarily through equity. 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.
Regeneron Pharmaceuticals (Nasdaq:REGN) is currently trading at $143.67 per share, a 3.6% increase. This morning, the company is trading a volume of 628,570 shares. This is 1.2 times the current three-month average. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 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. The capitalization ratio for REGN is 32.4%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
ArthroCare (Nasdaq:ARTC) is at $29.30 per share after an increase of 3.2%. At 74,458 shares, the company's volume so far today is in line with the current daily average. High volume indicates a lot of investor interest while low volume indicates the opposite. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. ARTC has a P/B ratio of 2.42 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. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: How Buybacks Warps The Price-To-Book Ratio
Align Technology (Nasdaq:ALGN) has decreased to $32.85 per share, a 2.8% fall. The company's volume for the day so far is 488,534 shares. 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. P/E ratio for ALGN is 31.9. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Smith & Nephew plc (NYSE:SNN) has risen 1.8% and is currently trading at $52.23 per share. This morning, 29,997 shares have been traded, while it was 114,093 shares yesterday. A stock's volume conveys how excited investors are about it. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. SNN has a high P/S ratio of 2.24. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
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