GNC Holdings Larger Than S&P 500 Component E*trade Financial

Dec 19 2013, 4:11pm CST | by

GNC Holdings Larger Than S&P 500 Component E*trade Financial
Photo Credit: Forbes Business

In the latest look at stocks ordered by largest market capitalization, Russell 3000 component GNC Holdings Inc (NYSE: GNC) was identified as having a larger market cap than the smaller end of the S&P 500, for example E*trade Financial Corporation (NASD: ETFC), 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 GNC Holdings Inc (NYSE: GNC), the market cap is now $5.57B, versus E*trade Financial Corporation (NASD: ETFC) at $5.55B.
Click here to find out The 20 Largest U.S. Companies By Market Capitalization »/>

Below is a three month price history chart comparing the stock performance of GNC vs. ETFC:


Special Offer: Try OLI Premium and get reports on Splits, Buybacks, and M&A daily


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, GNC is up about 0.2%, while ETFC is up about 1% on the day Thursday.

Source: Forbes Business

/>/>
 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Universe's earliest stars were monstrous: Study
Tokyo, Aug 23 (IANS) Little is known about the universe's earliest stars but if we believe astronomers, they might have been hundreds of times more massive than the sun.
 
 
Killer fungus that grows on trees
New York, Aug 23 (IANS) A teenaged girl has helped scientists discover that a deadly fungus that generally attacks HIV/AIDS patients grows on trees.
 
 
Most Americans lack knowledge about Ebola: Poll
Washington, Aug 23 (IANS) Most Americans are not fully aware about the deadly disease Ebola, says a poll conducted by the Harvard School of Public Health (HSPH).
 
 
Pamela Anderson boycotts ALS Ice Bucket Challenge
Los Angeles, Aug 23 (IANS) Actress Pamela Anderson has refused to take the Ice Bucket Challenge, benefiting the ALS Association.
 
 
 

Latest from the Network

Demi Moore cries for daughter
Demi Moore keeps ''breaking down in tears'' over her youngest daughter's problems. The 51-year-old actress - who spent time in rehab in 2012 for anorexia and prescription drug abuse after splitting from husband Ashton...
Read more on Celebrity Balla
 
David Beckham's late-night fast food feasts
David Beckham enjoyed two midnight fast food feasts without Victoria. The retired soccer star was spotted at Los Angeles chains Fat Sal's and Swingers, where it is said he enjoyed big snacks in the middle of the night....
Read more on Celebrity Balla
 
Nicki Minaj's dancer bitten by snake in rehearsals
Nicki Minaj's backing dancer was bitten by a snake during a rehearsal for the MTV Video Music Awards. The 'Anaconda' star will be performing her hit single at the annual bash tomorrow night (08.24.14), but their...
Read more on Celebrity Balla
 
Universe's earliest stars were monstrous: Study
Tokyo, Aug 23 (IANS) Little is known about the universe's earliest stars but if we believe astronomers, they might have been hundreds of times more massive than the sun. Researchers have found evidence of the...
Read more on Apple Balla
 
Asif Zardari in Lahore to meet Nawaz Sharif
Lahore, Aug 23 (IANS) Former president and Pakistan Peoples Party (PPP) co-chairman Asif Ali Zardari arrived in Lahore Saturday for a meeting with Prime Minister Nawaz Sharif. The two are expected to discuss the...
Read more on Politics Balla
 
Simeone still believes league title defence impossible
Madrid, Aug 23 (IANS) Atletico Madrid coach Diego Simeone saw his side beat Real Madrid 1-0 Friday night to clinch the Spanish Supercup 2-1 on aggregate but reiterated a day later that it was impossible for his side to...
Read more on Sport Balla
 
Killer fungus that grows on trees
New York, Aug 23 (IANS) A teenaged girl has helped scientists discover that a deadly fungus that generally attacks HIV/AIDS patients grows on trees. As part of her science project, Elan Filler, 13, spent the summer...
Read more on Apple Balla
 
Most Americans lack knowledge about Ebola: Poll
Washington, Aug 23 (IANS) Most Americans are not fully aware about the deadly disease Ebola, says a poll conducted by the Harvard School of Public Health (HSPH). Nearly 39 percent adult Americans believe that there...
Read more on Apple Balla
 
Nicki Minaj breaks Miley Cyrus's record
Los Angeles, Aug 23 (IANS) Singer Nicki Minaj has knocked pop star Miley Cyrus off her throne after her "Anaconda" music video became the most watched online. Minaj's "Anaconda" has broken the record for the most...
Read more on Celebrity Balla
 
Britney Spears, an expert at parroting too!
Los Angeles, Aug 23 (IANS) Pop star Britney Spears is not only a good singer, she also knows how to impersonate Woody Woodpecker, the animated bird known for his wild red pompadour and famous laugh. Spears shared a...
Read more on Celebrity Balla