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Tickers in this Article: SHLD, BKE, ZUMZ, GPS, TFM, COH, NFLX
The market is having a bad day so far: the Nasdaq has slipped 0.9%; the S&P 500 is down 0.7%; and the Dow is trading down 0.7%.

The Services sector (IYC) is down 0.4%, outperforming the market overall. Currently, the biggest movers in the sector are:
CompanyMarket CapPercentage Change
Sears (Nasdaq:SHLD).12 billion-7.3%
Buckle (NYSE:BKE).07 billion+6.3%
Zumiez (Nasdaq:ZUMZ)9 million+4.6%
Gap (NYSE:GPS).21 billion+3.2%
Fresh Market (Nasdaq:TFM).8 billion-3.2%
Coach (NYSE:COH).04 billion+2.8%
Netflix (Nasdaq:NFLX).52 billion-2.7%
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Slipping 7.3%, Sears (Nasdaq:SHLD) is currently trading at $53.26 per share. The company's volume is currently 1.7 million shares for the day, two times the current three-month average. The trading volume for a stock indicates the level of investor interest. 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 compares the total liabilities for a company to its total shareholder equity. SHLD's D/E ratio is 73%. 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.

Rising 6.3%, Buckle (NYSE:BKE) is currently trading at $45.94 per share. The company's volume for the morning is 371,873 shares. This is 1.2 times its average daily volume. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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 especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. BKE has a P/B ratio of 5.53 which 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. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Increasing 4.6%, Zumiez (Nasdaq:ZUMZ) is trading at $33.02 per share. At 454,514 shares, the company's volume so far today is on pace to reach yesterday's volume of 1.1 million shares. Volume indicates the level of interest that investors have in a company at its current price. 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. A price/sales ratio is derived by dividing stock market price by company sales. ZUMZ has a high P/S ratio of 1.98. This could be a good sign if the share price increases. 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.

Gap (NYSE:GPS) has risen 3.2% to hit a current price of $36.31 per share. The company is currently trading a volume of 4.1 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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 GPS is 62.2%, which is relatively high. As such, the company is highly leveraged and not highly liquid. 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.

After a decline of 3.2%, Fresh Market (Nasdaq:TFM) has hit a share price of $56.30. So far today, the company's volume is 888,156 shares, one times its average over the past three months. 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. Valuation ratios allow the investor to make a quick determination as to a company's investment value. 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. PEG ratio for TFM is consistent with the industry average at 2.4. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.

After an increase of 2.8%, Coach (NYSE:COH) has reached a current price of $57.83. This morning, the company's volume is 2.2 million shares. This is in keeping with its current daily average. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. COH's capitalization ratio is 0%, which is relatively low. Investors generally consider a company with low debt and high equity levels is a good quality investment. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.

Netflix (Nasdaq:NFLX) has decreased to $61.74 per share, a 2.7% fall. So far today, 912,865 shares have changed hands, consistent with the volume from yesterday while it was 2.2 million shares yesterday. 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. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. NFLX's P/E ratio of 34.9 falls below the industry average of 1288.38. A low P/E ratio may indicate that the market expects relatively slower earnings growth. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock

The Bottom Line The nature of the market is such that stocks will have good days and bad days. 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.

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