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Tickers in this Article: LQDT, TSCO, DLTR, YELP, HMIN, STRA, WPC
The Nasdaq has risen 0.2%, the S&P 500 has increased 0.5% and the Dow has moved up 0.5% on a good day for the market so far.

The Services sector (IYC) is up 0.7%, outperforming the market overall. The biggest movers in the sector so far are:
CompanyMarket CapPercentage Change
Liquidity Services (Nasdaq:LQDT)$1.45 billion-8%
Tractor Supply (Nasdaq:TSCO)$7.05 billion+4%
Dollar Tree (Nasdaq:DLTR)$10.79 billion+3.4%
Yelp (NYSE:YELP)$1.77 billion-3.3%
Home Inns & Hotels Management Inc (Nasdaq:HMIN)$1.23 billion-3.1%
Strayer Education (Nasdaq:STRA)$769 million+3%
W. P (NYSE:WPC)$2.03 billion+2.7%
Broker Summary: Fidelity Online Brokerage

Currently trading at $43.03 per share, Liquidity Services (Nasdaq:LQDT) has fallen 8%. So far today, the company's volume is 656,108 shares, one times the current daily average. Volume indicates the level of interest that investors have in a company at its current price. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. LQDT's capitalization ratio is 11.9%, which is relatively low. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.

Tractor Supply (Nasdaq:TSCO) is up 4% to reach a current price of $103.34 per share. So far today, 409,854 shares of the company's stock have changed hands. This is more trading activity than there was yesterday. Volume is used to evaluate how meaningful the price movement of a stock is. 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. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. TSCO's P/E ratio is 28.1. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?

Increasing 3.4%, Dollar Tree (Nasdaq:DLTR) is trading at $48.46 per share. The company's volume for the day so far is 1.2 million shares, consistent with its average over the last three months. A stock's volume conveys how excited investors are about it. 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. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). PEG ratio for DLTR is consistent with the industry average at 1.23. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.

Slipping 3.3%, Yelp (NYSE:YELP) is currently trading at $27.93 per share. So far today, 392,183 shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. 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 price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. YELP's P/B ratio of 12.14 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. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: How Buybacks Warps The Price-To-Book Ratio

Falling 3.1%, Home Inns & Hotels Management Inc (Nasdaq:HMIN) is currently at a share price of $26.24. So far today, the company's volume is 63,521 shares, 0.2 times its current daily average. Volume is an important indicator because it indicates how significant a price shift is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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 HMIN is 1.88, 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 compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.

After rising 3%, Strayer Education (Nasdaq:STRA) is currently trading at a share price of $66.69. The company's volume is currently 24,100 shares. At this rate, trading activity will likely be down from yesterday when 130,037 shares 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. 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The debt ratio for STRA is 68.5%, which is relatively high. This means that the company's cash flow is significantly impacted by paying off principal and interest and that any negative change in performance or rise in interest rates could result in default. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

W. P (NYSE:WPC) has increased to a share price of $51.59, a 2.7% rise. The company's volume is currently 249,681 shares for the day, 0.3 times its current three-month average. 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 provide investors with an estimation, albeit a simplistic one, of the value of a stock. The debt-equity (D/E) ratio is a leverage ratio. The D/E ratio for WPC is 83%. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.

The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.

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