Why Rackspace Hosting, Inc (NYSE:RAX) Is In News?


Thomson Reuters, a distinguished brokerage company, has placed a 52-week price target of $30.46 on Rackspace Hosting, Inc (NYSE:RAX) shares after it surveyed top market analysts. Calculating estimated earnings after taking into consideration different elements, it is predicted to come at $1.07 for the next fiscal and $N/A for underway quarter.

Valuation Estimates

Analysts take into account the price to earnings ratio to estimate the firm’s valuation. This ratio, which is also called as the P/E ratio evaluates the company on relative expense factor. The formula to calculate ratio is stock’s latest price/ per share earnings. The P/E ratio of Rackspace Hosting, Inc (NYSE:RAX) stands at 27.71.

Analysts also work out Price/Earnings Growth ratio in an attempt to estimate the valuation of a firm. This ratio commonly known as the PEG ratio implies the stock’s valuation compared to earnings growth potential. Investors look to invest in the stocks with a lower PEG ratio. For Rackspace Hosting, Inc Common S, the PEG ratio for coming 3-5 years is 1.74.

Technical Analysis

The technical analysis highlights that Rackspace Hosting, Inc Common S current is trading $5.14 points away or +19.49% from its 50-day moving average of $26.34. Further it is trading $8.06 or +34.42% away its 200-day moving average of $23.42.

The 52-week high of Rackspace Hosting, Inc (NYSE:RAX) was $32.14 while lowest point recorded in 52-week was $15.05. It implies if stock price makes a movement of over $-0.66, it will record a new 52-week high. In the case of +109.17% drop, it will touch a new 52-week low.

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