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Westinghouse Air Brake and Other Big Movers In Transportation on September 13, 2012
The Nasdaq has moved up 0.3%, the S&P 500 has risen 0.1% and the Dow has increased 0.2%, marking a bad morning for the market. The transportation sector is a category of stocks relating to the transportation of goods or customers. It is made up of airlines, railroads and trucking companies. The performance of the transportation sector is sensitive to the price of oil. Because operations revolve around the use of vehicles, fuel prices represent a significant cost to transportation companies. As the price of oil rises, transportation companies will be expected to earn less. Inversely, these companies do well when the cost of fuel decreases.
The Transportation sector (IYT) is down 0.5% on a good day for the market overall. The biggest movers in the sector so far are:
Broker Summary: E-Trade Financial
Falling 5.5%, Genesee & Wyoming (NYSE:GWR) is currently at a share price of $64.19. So far today, the company's volume is 464,098 shares, two times the average daily volume. 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. 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 debt-equity (D/E) ratio is a leverage ratio. The D/E ratio for GWR is 61%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Atlas Air Worldwide Holdings (Nasdaq:AAWW) has decreased to $55.33 per share, a 2.9% fall. This morning, the company is trading a volume of 48,784 shares. 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. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). PEG ratio for AAWW is consistent with the industry average at 0.91. 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.
Westinghouse Air Brake (NYSE:WAB) has fallen 2.3% and is currently trading at $80.97 per share. At 84,057 shares, the company's volume so far today is 0.3 times its current three-month 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. The P/B ratio for WAB is 3.37, indicating that the stock is trading for more 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. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Ship Finance (NYSE:SFL) is up 2% to reach a current price of $17.40 per share. The company's volume is currently 362,255 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. Dividend yield for SFL is 9.1%, which is fairly high. This could be a sign that the company is a "dividend trap" as companies with high dividends can be risky investments. Just as with the yield on a bond or certificate of deposit, the higher the dividend yield, the higher the return to the investor. SEE: Guide To Stock-Picking Strategies: Income Investing
Increasing 1.5%, Golar LNG (Nasdaq:GMLP) is trading at $30.90 per share. At 32,492 shares, the company's volume so far today is in line with the current daily average. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). GMLP's P/E ratio of 18.9 falls below the industry average of 154.17. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Profit With The Power Of Price-To-Earnings
At $36.03, Forward (Nasdaq:FWRD) has slipped 1.5%. So far today, 35,327 shares have changed hands. The trading volume for a stock indicates the level of investor interest. 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 ratio shows the proportion of assets that a company is financing through debt. FWRD has a debt ratio of 14%, which is fairly low. 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. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
After an increase of 1.4%, SkyWest (Nasdaq:SKYW) has reached a current price of $9.99. The company's volume is currently 193,448 shares for the day, consistent with its current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a 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 SKYW is 0.09, which is relatively low. Low P/S ratios can indicate unrecognized value potential - so long as other criteria like high profit margins, low debt levels and growth prospects are in place. 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.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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 Transportation sector (IYT) is down 0.5% on a good day for the market overall. The biggest movers in the sector so far are:
| Company | Market Cap | Percentage Change |
| Genesee & Wyoming (NYSE:GWR) | $2.91 billion | -5.5% |
| Atlas Air Worldwide Holdings (Nasdaq:AAWW) | $1.51 billion | -2.9% |
| Westinghouse Air Brake (NYSE:WAB) | $3.97 billion | -2.3% |
| Ship Finance (NYSE:SFL) | $1.35 billion | +2% |
| Golar LNG (Nasdaq:GMLP) | $704 million | +1.5% |
| Forward (Nasdaq:FWRD) | $1.07 billion | -1.5% |
| SkyWest (Nasdaq:SKYW) | $504.8 million | +1.4% |
Falling 5.5%, Genesee & Wyoming (NYSE:GWR) is currently at a share price of $64.19. So far today, the company's volume is 464,098 shares, two times the average daily volume. 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. 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 debt-equity (D/E) ratio is a leverage ratio. The D/E ratio for GWR is 61%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Atlas Air Worldwide Holdings (Nasdaq:AAWW) has decreased to $55.33 per share, a 2.9% fall. This morning, the company is trading a volume of 48,784 shares. 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. Using price/earnings ratios (P/E ratios) does not give an indication of whether or not an individual company's ratio is reasonable, a shortcoming that can be corrected by using the price/earnings to growth ratio (PEG ratio). PEG ratio for AAWW is consistent with the industry average at 0.91. 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.
Westinghouse Air Brake (NYSE:WAB) has fallen 2.3% and is currently trading at $80.97 per share. At 84,057 shares, the company's volume so far today is 0.3 times its current three-month 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. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. The P/B ratio for WAB is 3.37, indicating that the stock is trading for more 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. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Ship Finance (NYSE:SFL) is up 2% to reach a current price of $17.40 per share. The company's volume is currently 362,255 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. Dividend yield for SFL is 9.1%, which is fairly high. This could be a sign that the company is a "dividend trap" as companies with high dividends can be risky investments. Just as with the yield on a bond or certificate of deposit, the higher the dividend yield, the higher the return to the investor. SEE: Guide To Stock-Picking Strategies: Income Investing
Increasing 1.5%, Golar LNG (Nasdaq:GMLP) is trading at $30.90 per share. At 32,492 shares, the company's volume so far today is in line with the current daily average. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). GMLP's P/E ratio of 18.9 falls below the industry average of 154.17. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Profit With The Power Of Price-To-Earnings
At $36.03, Forward (Nasdaq:FWRD) has slipped 1.5%. So far today, 35,327 shares have changed hands. The trading volume for a stock indicates the level of investor interest. 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 ratio shows the proportion of assets that a company is financing through debt. FWRD has a debt ratio of 14%, which is fairly low. 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. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
After an increase of 1.4%, SkyWest (Nasdaq:SKYW) has reached a current price of $9.99. The company's volume is currently 193,448 shares for the day, consistent with its current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a 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 SKYW is 0.09, which is relatively low. Low P/S ratios can indicate unrecognized value potential - so long as other criteria like high profit margins, low debt levels and growth prospects are in place. 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.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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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