The market is currently up, with the Nasdaq up 0.6%, the S&P 500 increasing 0.8% and the Dow climbing 1.1%.
The Gold and Silver sector (SLV) is up 0.3%, underperforming the market overall. The biggest movers in the sector are currently:
|Company||Market Cap||Percentage Change|
|McEwen Mining (NYSE:MUX)||$865.4 million||+4.2%|
|IAMGOLD Corporation (NYSE:IAG)||$5.95 billion||+3%|
|Gold Fields Limited (NYSE:GFI)||$9.36 billion||+1.5%|
|Seabridge Gold, Inc (NYSE:SA)||$843 million||-1.4%|
|Agnico-Eagle Mines Limited (NYSE:AEM)||$8.9 billion||+1.3%|
|Silver Wheaton Corp (NYSE:SLW)||$14.05 billion||-1.2%|
|Royal Gold (Nasdaq:RGLD)||$5.88 billion||-1.1%|
Software Summary: Finviz.com Stock Screener
McEwen Mining (NYSE:MUX) has risen 4.2% to hit a current price of $4.79 per share. The company's volume for the day so far is 1.9 million shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. MUX's debt ratio of 25% is on the low side. 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.
IAMGOLD Corporation (NYSE:IAG) has risen 3% and is currently trading at $16.28 per share. The company's volume is currently 1.6 million shares for the day, 0.3 times the current daily average. Volume is an important indicator because it indicates how significant a price 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. 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. IAG's dividend yield of 1.6% is fairly low. This may indicate that the company's stock is overpriced. It is important to remember that dividends are only one component of a stock's return and capital appreciation (or decline) must also be considered when evaluating a security. SEE: Investment Valuation Ratios: Dividend Yield
Increasing 1.5%, Gold Fields Limited (NYSE:GFI) is trading at $13.04 per share. The company's volume for the day so far is 1.9 million shares. This is on pace to reach yesterday's trading volume of 3.8 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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 price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). Compared to the industry average of 0.45, GFI's P/E ratio of 10.6 is quite high. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Find P/E And PEG Ratios
Seabridge Gold, Inc (NYSE:SA) has decreased to $19.12 per share, a 1.4% fall. The company's volume for the day so far is 178,192 shares, 0.4 times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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 SA is 3.79, indicating that the stock is trading for more 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. 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: Using The Price-To-Book Ratio To Evaluate Companies
Agnico-Eagle Mines Limited (NYSE:AEM) has increased to a share price of $52.57, a 1.3% rise. So far today, the company's volume is 964,997 shares. 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 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 AEM is 3.63, which is relatively high. This could be a good sign if the share price increases. 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.
Falling 1.2%, Silver Wheaton Corp (NYSE:SLW) is currently at a share price of $39.25. At 3.1 million shares, the company's volume so far today is in line with the current daily average. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. SLW has a debt ratio of 6.9%, which is fairly low. 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.
Slipping 1.1%, Royal Gold (Nasdaq:RGLD) is currently trading at $98.68 per share. So far today, the company's volume is 437,276 shares. At this rate, trading activity will likely be down from yesterday when 1.3 million 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. 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. The debt-equity (D/E) ratio is a leverage ratio. RGLD 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. 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 On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.