The morning has been good for the market. The Nasdaq has increased 0.7%; the S&P 500 is trading up 0.5%; and the Dow is up 0.3%.
Outperforming the market overall, the Real Estate Operations sector (IYR) is up 0.7% and its biggest movers so far today are:
|Company||Market Cap||Percentage Change|
|W. P (NYSE:WPC)||$1.94 billion||+3.6%|
|Dynex Capital (NYSE:DX)||$589.9 million||-2.9%|
|Anworth Mortgage (NYSE:ANH)||$911.7 million||-2.9%|
|Kilroy (NYSE:KRC)||$3.15 billion||+2%|
|Howard (NYSE:HHC)||$2.71 billion||+2%|
|Taubman Centers (NYSE:TCO)||$4.5 billion||+1.6%|
|Jones Lang LaSalle (NYSE:JLL)||$3.41 billion||+1.4%|
Software Summary: Finviz.com Stock Screener
After an increase of 3.6%, W. P (NYSE:WPC) has reached a current price of $49.77. At 1.1 million shares, the company's volume so far today is 2.6 times the current daily average. Volume indicates the level of interest that investors have in a company at its current price. 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 price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. WPC has a P/B ratio of 2.89 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: How Buybacks Warps The Price-To-Book Ratio
Slipping 2.9%, Dynex Capital (NYSE:DX) is currently trading at $10.53 per share. The company's volume for the day so far is 570,876 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 price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). DX's P/E ratio of 10.0 is consistent with the industry average. 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: Can Investors Trust the P/E Ratio?
Anworth Mortgage (NYSE:ANH) is currently trading at a share price of $6.36, a 2.9% decline. The company's volume for the day so far is 1.4 million shares, 0.7 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for ANH is a high 4.55. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Kilroy (NYSE:KRC) is up 2% to reach a current price of $46.62 per share. The company is trading at a volume of 580,353 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. KRC's debt ratio is 56%. 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.
Howard (NYSE:HHC) has increased to a share price of $72.82, a 2% rise. At 36,320 shares, the company's volume so far today is 0.3 times its 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-equity (D/E) ratio is a leverage ratio. HHC has a debt-equity ratio of 29%, which is on the low side. 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 percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Taubman Centers (NYSE:TCO) is at $77.69 per share after an increase of 1.6%. So far today, the company's volume is 306,030 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. 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 dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. Dividend yield for TCO is 2.4%. Simply comparing the level of dividends that two stocks pay does not give a true reflection of which security is more attractive, so investors calculate the dividend yield in order to standardize dividend payments. SEE: Investment Valuation Ratios: Dividend Yield
Increasing 1.4%, Jones Lang LaSalle (NYSE:JLL) is trading at $78.56 per share. At 81,138 shares, the company's volume so far today is 0.3 times its average over the past three months. A stock's volume conveys how excited investors are about it. 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 price/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. JLL's PEG ratio is 1.17. 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. 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.