Thomson Reuters, a distinguished brokerage company, has placed a 52-week price target of $55.50 on Reynolds American Inc (NYSE:RAI) shares after it surveyed top market analysts. Calculating estimated earnings after taking into consideration different elements, it is predicted to come at $2.32 for the next fiscal and $N/A for underway quarter.
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 Reynolds American Inc (NYSE:RAI) stands at 13.67.
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 Reynolds American Inc Common St, the PEG ratio for coming 3-5 years is 1.83.
The technical analysis highlights that Reynolds American Inc Common St current is trading $-0.59 points away or -1.15% from its 50-day moving average of $51.25. Further it is trading $0.24 or +0.48% away its 200-day moving average of $50.42.
The 52-week high of Reynolds American Inc (NYSE:RAI) was $54.48 while lowest point recorded in 52-week was $35.69. It implies if stock price makes a movement of over $-3.82, it will record a new 52-week high. In the case of +41.92% drop, it will touch a new 52-week low.
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