Market News Video
MNV MNV 10 Stocks Crossing Above Their 200 Day Moving Average
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Ex-Dividend Reminder: MSC Industrial Direct, Landstar System and Kennametal
Thursday, November 9, 9:56 AM ET, by Market News Video Staff

On 11/13/17, MSC Industrial Direct Co Inc (MSM), Landstar System, Inc. (LSTR), and Kennametal Inc.. ...

December 29th Options Now Available For Chesapeake Energy (CHK)
Thursday, November 9, 10:35 AM ET, by Market News Video Staff

Investors in Chesapeake Energy Corp. (CHK) saw new options become available today, for the December ...

Thursday Sector Leaders: Services, Energy
Thursday, November 9, 2:30 PM ET, by Market News Video Staff

In afternoon trading on Thursday, Services stocks are the best performing sector, up 1.2%. Within ...

The CHK Paradox: Analysts Bearish But Forecast 27.28% Gains
Wednesday, November 15, 9:19 AM ET, by Market News Video Staff

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

Valmont Industries Moves Up In Market Cap Rank, Passing Chesapeake Energy
Wednesday, November 15, 4:40 PM ET, by Market News Video Staff

In the latest look at stocks ordered by largest market capitalization, Russell 3000 component Valmont ...

  More articles:  1 2 next »

Kennametal Larger Than S&P 500 Component Chesapeake Energy

By Market News Video Staff, Wednesday, December 6, 4:40 PM ET
Play Video: The Importance Of Market Cap

If the video does not load after a few moments, Upgrade to the Latest Flash Player.

In the latest look at stocks ordered by largest market capitalization, Russell 3000 component Kennametal Inc. (NYSE:KMT) was identified as having a larger market cap than the smaller end of the S&P 500, for example Chesapeake Energy Corp. (NYSE:CHK), according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating

Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Kennametal Inc. (NYSE:KMT), the market cap is now $3.68B, versus Chesapeake Energy Corp. (NYSE:CHK) at $3.43B.

Below is a three month price history chart comparing the stock performance of KMT vs. CHK (Note that we have found 2 splits in the KMT split history):

KMT,CHK Relative Performance Chart

Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which indices will include the stock, and which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). And ETFs that directly follow an index like the S&P 500 will only own the underlying component of that index, selling companies that lose their status as an S&P 500 company, and buying companies when they are added to the index. So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at find value to putting together these looks at comparative market capitalization daily.

At the closing bell, KMT is down about 0.7%, while CHK is off about 3.8% on the day Wednesday.

Top Six Most Viewed Stories This Week @ Market News Video:

This Article's Word Cloud:   Another   Chesapeake   Corp   ETFs   Energy   Kennametal   Market   NYSE   about   another   apples   capitalization   companies   company   comparing   comparison   component   example   find   have   history   important   index   investors   larger   like   look   many   market   much   mutual   only   ordered   other   reason   relation   size   smaller   solely   stock   stocks   that   their   these   those   trading   true   value   which   will
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy - Video Widget
Home  |  Analyst News  Dividend Report  ETFs  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV MNV Chart Zero Stock Market Game Stock Market Definitions

Kennametal Larger Than S&P 500 Component Chesapeake Energy | Market News Video | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.