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Tickers in this Article: MGRC, CBG, LQDT, NFLX, CMCSA, PSMT, CMG
The market is currently up, with the Nasdaq climbing 0.1%, the S&P 500 increasing 0.5% and the Dow up 0.4%.

The Services sector (IYC) is up 0.1%, outperforming the market overall. The biggest movers in the sector so far are:
CompanyMarket CapPercentage Change
McGrath RentCorp (Nasdaq:MGRC)$658.9 million-10.5%
CBRE Group Inc (NYSE:CBG)$5.11 billion+8.5%
Liquidity Services, Inc. (Nasdaq:LQDT)$1.43 billion-7.6%
Netflix (Nasdaq:NFLX)$3.16 billion-3.8%
Comcast (Nasdaq:CMCSA)$87.76 billion+3.3%
PriceSmart, Inc. (Nasdaq:PSMT)$2.18 billion-3.2%
Chipotle Mexican Grill, Inc. (NYSE:CMG)$9.26 billion-3.1%
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McGrath (Nasdaq:MGRC) is currently trading at $23.81 per share, after a steep drop of 10.5%. At 390,242 shares, the company's volume so far today is 6.8 times the average daily volume. 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 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. PEG ratio for MGRC is consistent with the industry average at 1.21. 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.

CBRE Group (NYSE:CBG) is up 8.5% to reach a current price of $16.90 per share. The company's volume for the day so far is 3.8 million shares. Volume indicates the level of interest that investors have in a company at its current price. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt ratio shows the proportion of assets that a company is financing through debt. CBG has a debt ratio of 81.5%, which is on the high side. As such, the company is highly leveraged and not highly liquid. 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.

Slipping 7.6%, Liquidity Services (Nasdaq:LQDT) is currently trading at $42.24 per share. With 768,843 shares changing hands so far today, the company's volume is 0.7 times the 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 price/sales ratio measures a company's stock market price by its revenues. LQDT has a high P/S ratio of 3.58. 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 compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.

Netflix (Nasdaq:NFLX) has fallen 3.8% and is currently trading at $54.69 per share. So far today, 2.1 million shares of the company's stock have changed hands. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. 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. NFLX's P/B ratio of 4.58 shows that its share price is higher than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Comcast (Nasdaq:CMCSA) has risen 3.3% and is currently trading at $33.61 per share. The company's volume is currently 11.7 million shares for the day, 0.9 times the current daily average. A stock's volume conveys how excited investors are about it. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt-equity (D/E) ratio is a leverage ratio. The D/E ratio for CMCSA is 80%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.

PriceSmart (Nasdaq:PSMT) has decreased to $69.73 per share, a 3.2% fall. The company is currently trading a volume of 55,621 shares. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. The capitalizion ratio of 15.5% is on the low end. Investors generally consider a company with low debt and high equity levels is a good quality investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.

Chipotle Mexica (NYSE:CMG) is trading at $283.15 per share, down 3.1%. At 375,687 shares, the company's volume so far today is 0.2 times its current three-month average. If a stock price makes a big move up or down, volume lets us know the significance of that move. A company's investment value can be 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. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. Compared to the industry average of 20.93, CMG's P/E ratio of 35.5 is quite high. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: The P/E Ratio: A Good Market-Timing Indicator

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

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