Analyst Ratings for Rackspace Hosting, Inc. (RAX)Updated: 2016-11-01
RAX was given price targets by several analysts. The maximum price target given was 44, which equates to a potential upside of 37.54 percent. The minimum price target given was 18, which equates to a potential downside of -43.73 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.
Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of 0 percent. This can be compared with the average change in earnings estimates over the past 3 months, which is -6.34 percent. Meanwhile, fiscal year estimates have been revised upwards by 0 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of 1.96 percent in FY estimates.
Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 0 analysts have revised their quarterly estimates upwards in the past 30 days, which can be compared to the 0 analysts that decreased their estimates. Over the same time period, 0 analysts revised their FY earnings estimates upwards, compared to 0 analysts that revised their FY estimates downwards.
Analysts estimate earnings of RAX to grow at a rate of -7.67 percent. Another measure frequently examined by investors is the PEG ratio. Investors like to see smaller values for the PEG ratio, because people typically see that as an indicator of higher growth relative to stock price. People often look for the PEG ratio to be under 1, although it is frequently more appropriate to compare PEG ratios to the company's peers. RAX has a PEG ratio of -3.62.
RAX has traded between a high of 32.14 and a low of 15.05 over the past year. Currently the stock is 112.56 percent higher than its low, and below the high by 0.47 percent. RAX has a price/earnings ratio of 27.79. Investors typically compare the P/E ratio to a company's peers in the industry. The RAX value stock report compares RAX to some of its peers using value stock charts. The stock has a market capitalization of $4.02 billion. RAX will post this quarters earnings in -1020 days, on 2016-11-07.