The Nasdaq has slipped 0.2%, the S&P 500 has been relatively flat and the Dow has remained steady after the morning's trading.
While the market overall has shown little change, the Services sector (IYC) is up 0.2% and its current biggest movers are:
|Company||Market Cap||Percentage Change|
|Yelp (NYSE:YELP)||$1.12 billion||+18.9%|
|Jos. A. Bank Clothiers (Nasdaq:JOSB)||$1.16 billion||+17%|
|TAL Education Group (NYSE:XRS)||$650.8 million||-11.2%|
|Men\'s Wearhouse (NYSE:MW)||$1.57 billion||+4.1%|
|Francesca\'s (Nasdaq:FRAN)||$1.5 billion||+3.6%|
|Sears (Nasdaq:SHLD)||$5.85 billion||+2.9%|
|Five Below (Nasdaq:FIVE)||$1.73 billion||-2.6%|
Broker Summary: Fidelity Online Brokerage
After a big jump of 18.9%, Yelp (NYSE:YELP) is trading at $21.71 per share. So far today, the company's volume is 4.4 million shares, four times the average daily volume. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. The P/B ratio for YELP is 9.44, indicating that the stock is trading for more than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. 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
Jos. A. Bank Clothiers (Nasdaq:JOSB) is trading at $48.72 per share, a significant rise of 17%. So far today, 2.8 million shares have changed hands. High volume indicates a lot of investor interest while low volume indicates the opposite. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. Relative to the industry P/E ratio of 17.63, JOSB's 12.3 is low. A low P/E ratio may indicate that the market expects relatively slower earnings growth. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: How To Find P/E And PEG Ratios
Taking a 11.2% hit, TAL Education Group (NYSE:XRS) is currently trading at $7.46 per share. The company's volume is currently 193,980 shares for the day, 3.2 times its current three-month average. 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. The price/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. The P/S ratio for XRS is 4.21, which is relatively high. 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 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.
Men's Wearhouse (NYSE:MW) is at $31.99 per share after an increase of 4.1%. The company is trading at a volume of 272,051 shares. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for MW is a low 30.8%. 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.
Rising 3.6%, Francesca's (Nasdaq:FRAN) is currently trading at $35.67 per share. At 336,803 shares, the company's volume so far today is consistent with its current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 is a leverage ratio. FRAN has a low debt-equity ratio of 43%. 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. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
Sears (Nasdaq:SHLD) is currently trading at $56.57 per share, a 2.9% increase. So far today, the company's volume is 392,989 shares. If a stock price makes a big move up or down, volume lets us know the significance of that 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. 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. SHLD's capitalization ratio is 30.5%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Five Below (Nasdaq:FIVE) is down 2.6% to reach $31.33 per share. The company's volume for the day so far is 49,060 shares, 0.2 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. A company's value as an investment is more easily 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. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. FIVE has a PEG ratio of 3.17. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. 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.