Wells Fargo & Co (NYSE:WFC), STMicroelectronics NV (ADR) (NYSE:STM), American Eagle Outfitters (NYSE:AEO) is stuffy Stock


Wells Fargo & Co (NYSE:WFC) exchanged hands 18.37 Million shares versus average trading capacity of 18.64 Million shares, while its relative trading volume is 0.97. Wells Fargo & Co (NYSE:WFC)’s total outstanding shares is $4.96 Billion. Wells Fargo & Co (NYSE:WFC) currently has a PEG ratio of 1.58 where as its P/E ratio is 12.80. The company’s price to sales ratio for trailing twelve months is 4.64, whereas price to cash per share for the most recent quarter is 0.71.

Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by multiplying the current market price of the company’s share with the total outstanding shares of the company.

Why is market capitalization important?

Market cap — or market capitalization — refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For example, a company with 20 million shares selling at $50 a share would have a market cap of $1 billion.

The Strengths and Weaknesses of Stock Market Capitalization

Stock market capitalization can allow investors to understand the relative size of one company versus another, ignoring specifics about capital structure that cause the share price of one firm to be higher than another firm.  For example, compare Coca-Cola at $43.32 per share with retailer AutoZone at $753.47 per share.  Despite having an exponentially larger share price, the latter has a stock market capitalization of $22 billion; a mere fraction of Coke’s.  The share price as presented is an accounting quirk resulting from the total outstanding shares a company’s board of directors has permitted to exist through its use of things such as stock splits.  To learn more about this topic, check out my article How to Think About Share Price, which walks you through the math, explaining how a $300 stock might be cheaper than a $10 stock.

Determining the Market Cap

The market cap is found by multiplying the per-share price by the total number of outstanding shares. This number gives you the total value of the company or, stated another way, what it would cost to buy the whole company on the open market. According to the above information, we will evaluate the Market Cap of these two stock First, Wells Fargo & Co (NYSE:WFC) has a market capitalization of $257.88 Billion and the STMicroelectronics NV (ADR) (NYSE:STM)’s Market Cap has $15.04 Billion.

STMicroelectronics NV (ADR) (NYSE:STM) fell -3.56% during previous trade. The Company’s quick ratio for most recent quarter is 1.80 along with current ratio for most recent quarter of 2.40. Total debt to equity ratio of the company for most recent quarter is 0.30 whereas long term debt to equity ratio for most recent quarter is 0.28.

On the other hand, American Eagle Outfitters (NYSE:AEO)’s stock exchanged hands 4.25 Million shares versus average trading capacity of 2.91 Million shares. The Company ended last trading session at the price of $11.21

American Eagle Outfitters (NYSE:AEO) performance over the past one year plunged -37.65%. During the last six months the stock slipped -27.58%. Quarterly performance of the company shows declining momentum of -18.18% while its last one month trend is negative with -0.27%. Stock’s weekly performance expressed down trend of -3.78%.

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