Friday Sector Leaders: Energy, Utilities Friday, May 31, 2:37 PM ET, by Market News Video Staff The best performing sector as of midday Friday is the Energy sector, up 1.6%. Within ...
Notable Monday Option Activity: COHR, VST, AVTR Monday, June 3, 4:04 PM ET, by Market News Video Staff Looking at options trading activity among components of the Russell 3000 index, there is noteworthy ...
Coherent Reaches Analyst Target Price Tuesday, June 4, 6:51 AM ET, by Market News Video Staff In recent trading, shares of Coherent Corp (COHR) have crossed above the average analyst 12-month ...
Noteworthy Thursday Option Activity: BRBR, GNRC, COHR Thursday, June 13, 3:32 PM ET, by Market News Video Staff Looking at options trading activity among components of the Russell 3000 index, there is noteworthy ...
Coherent Larger Than S&P 500 Component NiSource
By Market News Video Staff, Friday, October 11, 8:07 PM ET
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 Coherent Corp (NYSE:COHR), the market cap is now $15.29B, versus NiSource Inc. (NYSE:NI) at $15.13B.
Below is a three month price history chart comparing the stock performance of COHR vs. NI (Note that we have found 1 split in the COHR split history):
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 TheOnlineInvestor.com find value to putting together these looks at comparative market capitalization daily.
At the closing bell, COHR is up about 5.5%, while NI is up about 0.6% on the day Friday.
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