Filed Under: ,
Tickers in this Article: ZUMZ, FRAN, APOL, URBN, Z, WPC, TIF
The Nasdaq has declined 0.6%, the S&P 500 has remained steady and the Dow has moved up 0.1% after the morning's trading.

The Services sector (IYC) is trading up 0.2% overall, and these are the biggest movers in the sector so far:
CompanyMarket CapPercentage Change
Zumiez (Nasdaq:ZUMZ)4 million-4.6%
Francesca\'s (Nasdaq:FRAN).22 billion+4.1%
Apollo (Nasdaq:APOL).43 billion-3.7%
Urban Outfitters, Inc (Nasdaq:URBN).61 billion+3.2%
Zillow (Nasdaq:Z).25 billion-2.9%
W. P (NYSE:WPC).8 billion-2.1%
Tiffany (NYSE:TIF).93 billion+2%
Beginner's Guide To Thinkorswim Trading Platform

After a decline of 4.6%, Zumiez (Nasdaq:ZUMZ) has hit a share price of $27.81. So far today, the company's volume is 400,217 shares, 0.3 times its current daily average. 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 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/earnings to growth (PEG) ratio compares a company's P/E ratio to its earnings-per-share growth rate, which tells you whether or not you are getting a good value when purchasing a stock with a high price/earnings ratio (P/E ratio). ZUMZ's PEG ratio of 1.21 is in line with the industry average. 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.

Francesca's (Nasdaq:FRAN) is currently trading at $29 per share, a 4.1% increase. The company is currently trading a volume of 1.7 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. 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/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. FRAN's stock is trading for more than its book value with a P/B ratio of 29.9. 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. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio

Slipping 3.7%, Apollo (Nasdaq:APOL) is currently trading at $29.18 per share. At 952,763 shares, the company's volume so far today is while it was three million shares yesterday. In technical analysis, trading volume is used to determine the strength of a market indicator. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. A price/sales ratio is derived by dividing stock market price by company sales. APOL's P/S ratio of 0.82 is fairly low. Highly levered companies are likely to have lower P/S ratios because the price aspect of this ratio only measures stock market valuation while sales is a function of both stock market and bond market capitalization. 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.

After rising 3.2%, Urban Outfitters, Inc (Nasdaq:URBN) is currently trading at a share price of $39.95. So far today, 2.1 million shares have changed hands. This is 0.9 times its current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. URBN's debt ratio of 26.4% is on the low side. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

Zillow (Nasdaq:Z) has decreased to $41.40 per share, a 2.9% fall. The company's volume is currently 821,977 shares for the day, 0.7 times the current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. Z has a P/E ratio of 621.3, high compared to the industry average of 7.07. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Profit With The Power Of Price-To-Earnings

W. P (NYSE:WPC) has fallen 2.1% and is currently trading at $43.71 per share. So far today, 34,159 shares have changed hands. 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 include 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 is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. WPC's D/E ratio is 83%. 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.

Increasing 2%, Tiffany (NYSE:TIF) is trading at $63.88 per share. So far today, 1.3 million shares have changed hands, with trading activity in keeping with yesterday's which is likely to result in less activity than yesterday's volume of 2.9 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. TIF has a fairly low capitalization ratio of 24.7%. Low leverage is a significant balance sheet strength, a sign of a less risky 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.

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

comments powered by Disqus

Trading Center