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Rio Tinto plc (ADR) Among Basic Materials' Biggest Movers
After the morning's trading, the Nasdaq is trading up 0.2%, the S&P 500 has been relatively flat and the Dow has moved little. The basic materials sector is the category of stocks that accounts for companies involved with the discovery, development and processing of raw materials. This sector includes the mining and refining of metals, chemical producers and forestry products. The basic materials sector is sensitive to changes in the business cycle. Because the sector supplies materials for construction, it depends on a strong economy. This sector is also sensitive to supply and demand fluctuations because the price of raw materials, such as gold or other metals, is largely demand driven.
The Basic Materials sector (XLB) is up 0.1% so far today and here are its biggest movers:
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Huntsman (NYSE:HUN) is up 4.9% to reach a current price of $14.25 per share. With two million shares changing hands so far today, the company's volume is 0.7 times its average over the past three months. The trading volume for a stock indicates the level of investor interest. 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 assumption with high price/earnings stocks (generally of the growth variety) is that investors are willing to buy at a high price because they believe that the stock has significant growth potential, and the price/earnings to growth (PEG) ratio helps investors determine the degree of reliability of that growth assumption. HUN's PEG ratio of 1.17 is in line with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Greif (NYSE:GEF) is trading at $41.23 per share, down 4.8%. So far today, the company's volume is 301,193 shares. Yesterday's volume was only 100,299 shares. 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. GEF's capitalization ratio of 50.2% is relatively high. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Rio Tinto plc (NYSE:RIO) is currently trading at a share price of $47.73, a 4.3% decline. At 1.4 million shares, the company's volume so far today is in keeping with its current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. RIO's P/E ratio is 16.7. 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?
At $48.59, Greif (NYSE:GEF.B) has slipped 3.1%. This morning, the company is trading a volume of 10,435 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. GEF.B's dividend yield is 5%. A higher dividend yield may indicate a risk of a fall in the price of the security, or a cut in the level of dividend payments, either of which would have the effect of dropping future returns. SEE: Dividend Yield For The Downturn
Slipping 2.7%, Raven Industries (Nasdaq:RAVN) is currently trading at $31.46 per share. The company's volume is currently 29,309 shares for the day, 0.4 times the average volume over the last three months. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift 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 debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for RAVN is a low 26.1%. A low debt ratio means the company has more available cash flow. 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.
Rentech Nitrogen (NYSE:RNF) has moved up 2.7% and is currently trading at $32.68 per share. The company's volume for the day so far is 178,717 shares. This is about the same trading activity as there was yesterday. Volume is used to evaluate how meaningful the price movement of a stock is. 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 debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. RNF's debt-equity ratio of 17% is on the low end. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Currently trading at $233.01 per share, Terra Nitrogen Company (NYSE:TNH) has fallen 2.5%. So far today, the company's volume is 9,739 shares, 0.4 times the average daily volume. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios allow the investor to make a quick determination as to a company's investment value. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. TNH has a P/E ratio of 14.5. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio
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 Basic Materials sector (XLB) is up 0.1% so far today and here are its biggest movers:
| Company | Market Cap | Percentage Change |
| Huntsman Corporation (NYSE:HUN) | $3.31 billion | +4.9% |
| Greif, Inc. (NYSE:GEF) | $2.05 billion | -4.8% |
| Rio Tinto plc (ADR) (NYSE:RIO) | $92.41 billion | -4.3% |
| Greif, Inc. (NYSE:GEF.B) | $1.11 billion | -3.1% |
| Raven Industries, Inc. (Nasdaq:RAVN) | $1.17 billion | -2.7% |
| Rentech Nitrogen Partners LP (NYSE:RNF) | $1.22 billion | +2.7% |
| Terra Nitrogen Company, L.P. (NYSE:TNH) | $4.42 billion | -2.5% |
Huntsman (NYSE:HUN) is up 4.9% to reach a current price of $14.25 per share. With two million shares changing hands so far today, the company's volume is 0.7 times its average over the past three months. The trading volume for a stock indicates the level of investor interest. 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 assumption with high price/earnings stocks (generally of the growth variety) is that investors are willing to buy at a high price because they believe that the stock has significant growth potential, and the price/earnings to growth (PEG) ratio helps investors determine the degree of reliability of that growth assumption. HUN's PEG ratio of 1.17 is in line with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Greif (NYSE:GEF) is trading at $41.23 per share, down 4.8%. So far today, the company's volume is 301,193 shares. Yesterday's volume was only 100,299 shares. 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. GEF's capitalization ratio of 50.2% is relatively high. The company may have trouble meeting operating and debt liabilities on time and surviving adverse economic conditions. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Rio Tinto plc (NYSE:RIO) is currently trading at a share price of $47.73, a 4.3% decline. At 1.4 million shares, the company's volume so far today is in keeping with its current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. RIO's P/E ratio is 16.7. 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?
At $48.59, Greif (NYSE:GEF.B) has slipped 3.1%. This morning, the company is trading a volume of 10,435 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. GEF.B's dividend yield is 5%. A higher dividend yield may indicate a risk of a fall in the price of the security, or a cut in the level of dividend payments, either of which would have the effect of dropping future returns. SEE: Dividend Yield For The Downturn
Slipping 2.7%, Raven Industries (Nasdaq:RAVN) is currently trading at $31.46 per share. The company's volume is currently 29,309 shares for the day, 0.4 times the average volume over the last three months. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift 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 debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for RAVN is a low 26.1%. A low debt ratio means the company has more available cash flow. 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.
Rentech Nitrogen (NYSE:RNF) has moved up 2.7% and is currently trading at $32.68 per share. The company's volume for the day so far is 178,717 shares. This is about the same trading activity as there was yesterday. Volume is used to evaluate how meaningful the price movement of a stock is. 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 debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. RNF's debt-equity ratio of 17% is on the low end. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Currently trading at $233.01 per share, Terra Nitrogen Company (NYSE:TNH) has fallen 2.5%. So far today, the company's volume is 9,739 shares, 0.4 times the average daily volume. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios allow the investor to make a quick determination as to a company's investment value. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. TNH has a P/E ratio of 14.5. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio
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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