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Today's Major Consumer/Non-Cyclical Sector Movers: Fomento Economico Mexicano SAB (ADR) and More
The market is having a good day so far: the Nasdaq has climbed 1.4%; the S&P 500 is trading up 1.1%; and the Dow has increased 0.8%.
The Consumer/Non-Cyclical sector (XLP) is up 1%, underperforming the market overall. The biggest movers in the sector are currently:
Software Summary: Finviz.com Stock Screener
Starbucks (Nasdaq:SBUX) is currently trading at $46.82 per share, after a steep drop of 10.7%. So far today, 15.1 million shares of the company's stock have changed hands. Yesterday's volume was only 14.2 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. SBUX's P/E ratio of 30.3 is above the industry average of 20.9. This could mean that the market is expecting big things over the next few months or years. 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
Nu Skin Enterprises (NYSE:NUS) has risen 4.5% to hit a current price of $50.75 per share. So far today, the company's volume is 863,689 shares, one 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 divides a company's P/E ratio by its growth rate of earnings-per-share. PEG ratio for NUS is consistent with the industry average at 1.3. 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 3.7%, Andersons (Nasdaq:ANDE) has reached a current price of $37.69. So far today, the company's volume is 26,730 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. 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 ANDE is 1.29, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. 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: Using The Price-To-Book Ratio To Evaluate Companies
Increasing 3.6%, Herbalife (NYSE:HLF) is trading at $52.99 per share. At 658,331 shares, the company's volume so far today is in keeping with the average volume over the past three months. 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. HLF's dividend yield is 2.3%. 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: Guide To Stock-Picking Strategies: Income Investing
Fortune (NYSE:BEAM) is at $62.82 per share after an increase of 2.6%. The company's volume is currently 241,264 shares. This is on pace to reach yesterday's trading volume of 563,406 shares. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for BEAM is a high 5.73. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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 2.5%, USANA Health Sciences (NYSE:USNA) is currently trading at a share price of $45. The company's volume is currently 90,122 shares for the day, 0.9 times the average daily volume. Volume is used to evaluate how meaningful the price movement of a stock is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The debt ratio is calculated by dividing total liabilities by total assets. USNA's debt ratio of 29.6% is on the low side. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. 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.
Fomento Economico Mexicano SAB (NYSE:FMX) is currently trading at $87.80 per share, a 2.2% increase. The company's volume for the day so far is 162,668 shares. Volume is an important indicator because it indicates how significant a price 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 debt-equity (D/E) ratio is a leverage ratio. FMX has a debt-equity ratio of 14%, which is on the low side. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. 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.
The Consumer/Non-Cyclical sector (XLP) is up 1%, underperforming the market overall. The biggest movers in the sector are currently:
| Company | Market Cap | Percentage Change |
| Starbucks (Nasdaq:SBUX) | $39.75 billion | -10.7% |
| Nu Skin Enterprises, Inc. (NYSE:NUS) | $3.06 billion | +4.5% |
| The Andersons, Inc. (Nasdaq:ANDE) | $676.3 million | +3.7% |
| Herbalife Ltd. (NYSE:HLF) | $5.98 billion | +3.6% |
| Fortune Brands (NYSE:BEAM) | $9.64 billion | +2.6% |
| USANA Health Sciences, Inc. (NYSE:USNA) | $652.6 million | +2.5% |
| Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) | $153.77 billion | +2.2% |
Starbucks (Nasdaq:SBUX) is currently trading at $46.82 per share, after a steep drop of 10.7%. So far today, 15.1 million shares of the company's stock have changed hands. Yesterday's volume was only 14.2 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. SBUX's P/E ratio of 30.3 is above the industry average of 20.9. This could mean that the market is expecting big things over the next few months or years. 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
Nu Skin Enterprises (NYSE:NUS) has risen 4.5% to hit a current price of $50.75 per share. So far today, the company's volume is 863,689 shares, one 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 divides a company's P/E ratio by its growth rate of earnings-per-share. PEG ratio for NUS is consistent with the industry average at 1.3. 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 3.7%, Andersons (Nasdaq:ANDE) has reached a current price of $37.69. So far today, the company's volume is 26,730 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. 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 ANDE is 1.29, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. 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: Using The Price-To-Book Ratio To Evaluate Companies
Fortune (NYSE:BEAM) is at $62.82 per share after an increase of 2.6%. The company's volume is currently 241,264 shares. This is on pace to reach yesterday's trading volume of 563,406 shares. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for BEAM is a high 5.73. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. 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 2.5%, USANA Health Sciences (NYSE:USNA) is currently trading at a share price of $45. The company's volume is currently 90,122 shares for the day, 0.9 times the average daily volume. Volume is used to evaluate how meaningful the price movement of a stock is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The debt ratio is calculated by dividing total liabilities by total assets. USNA's debt ratio of 29.6% is on the low side. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. 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.
Fomento Economico Mexicano SAB (NYSE:FMX) is currently trading at $87.80 per share, a 2.2% increase. The company's volume for the day so far is 162,668 shares. Volume is an important indicator because it indicates how significant a price 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 debt-equity (D/E) ratio is a leverage ratio. FMX has a debt-equity ratio of 14%, which is on the low side. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. 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.
by
Investopedia Staff
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