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Tickers in this Article: INFA, QLIK, ENS, CACI, MSTR, TDC, MDSO
The Nasdaq has moved little, the S&P 500 has increased 0.4% and the Dow has climbed 0.5% after the morning's trading. The technology sector is a category of stocks relating to the research, development and/or distribution of technologically based goods and services. This sector contains businesses revolving around the manufacturing of electronics, creation of software, computers or products and services relating to information technology. The technology sector offers a wide arrange of products and services for both customers and other businesses. Consumer goods like personal computers, stereos and televisions are continually improved and upgraded, offering the latest technology to all users. Businesses receive information and services from software and database systems, which allow the companies to make strategic business decisions.

The Technology sector (XLK) has increased 0.1% overall, and these are the biggest movers in the sector so far:
CompanyMarket CapPercentage Change
Informatica (Nasdaq:INFA)$3.65 billion-26.7%
Qlik Technologies (Nasdaq:QLIK)$1.78 billion-8.3%
EnerSys (NYSE:ENS)$1.73 billion-4.5%
CACI International (NYSE:CACI)$1.18 billion-4.1%
MicroStrategy (Nasdaq:MSTR)$1.42 billion-3.9%
Teradata (NYSE:TDC)$12.82 billion-3.5%
Medidata Solutions (Nasdaq:MDSO)$1.02 billion-2.9%
Software Summary: Finviz.com Stock Screener

Informatica (Nasdaq:INFA) is currently trading at $24.65 per share, after a steep drop of 26.7%. The company's volume for the day so far is 12 million shares, 6.4 times its current three-month average. 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. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. 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. INFA's PEG ratio is 1.86. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.

Currently trading at $19.11 per share, Qlik Technologies (Nasdaq:QLIK) has fallen 8.3%. So far today, 2.2 million shares have changed hands. A stock's volume conveys how excited investors are about it. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). P/E ratio for QLIK is 260.5. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Understanding The P/E Ratio

Falling 4.5%, EnerSys (NYSE:ENS) is currently at a share price of $34.46. At 316,897 shares, the company's volume so far today is 0.8 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 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. ENS' capitalization ratio is 19.8%, 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.

At $49.93, CACI International (NYSE:CACI) has slipped 4.1%. The company's volume is currently 261,541 shares. This is greater than yesterday's volume of 143,287 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. The P/B ratio for CACI is 0.97 because the stock is trading for less than its book value. This could mean that either the market believes the asset value is overstated, or the company is earning a very poor (even negative) 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: Investment Valuation Ratios: Price/Book Value Ratio

MicroStrategy (Nasdaq:MSTR) is trading at $124.69 per share, down 3.9%. The company's volume is currently 91,493 shares for the day, 0.7 times its average over the past three months. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. MSTR has a high P/S ratio of 2.41. 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.

Teradata (NYSE:TDC) has fallen 3.5% and is currently trading at $73.43 per share. The company's volume for the day so far is 2.3 million shares. Volume is an important indicator because it indicates how significant a price shift is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for TDC is a low 40.5%. 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 2.9%, Medidata Solutions (Nasdaq:MDSO) is currently trading at $38.50 per share. So far today, the company's volume is 105,524 shares, in keeping with its current daily average. The trading volume for a stock indicates the level of investor interest. 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/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. PEG ratio for MDSO is 1.36. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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