EPS Estimates Lure Passive Investments: Reynolds American (NYSE:RAI), BorgWarner (NYSE:BWA)

Reynolds American Inc. (NYSE:RAI) [Trend Analysis] surged reacts as active mover, shares moved up 0.31% to traded at $55.36 and the percentage gap between open changing to regular change was 0.13%. Finally to see some strong financial remarks by WSJ over RAI performance. Out of the pool of analysts 9 gave their BUY ratings on the stock in previous month as 9 analysts having BUY in current month. The stock was ranked as Underweight by 1 analyst. Majority ranked Overweight from the pool of analysts.

The next year first quarter EPS estimates trend for current period shows $0.60 while one month ago this estimate trend was for $0.60. EPS indicator shows the robustness of the stock and its analysis opens up the clear picture of company’s profitability. On annual basis of EPS, FY 2017 Estimate Trends at current were for $2.55 and for the one month was for $2.55 as compared to three months ago was for $2.59. Whereas, RAI received highest price target of 62.00 and low target of 49.00. The stock price target chart showed average price target of 54.86 as compared to current price of 55.36.

The firm’s current ratio calculated as 1.00 for the most recent quarter. The firm past twelve months price to sales ratio was 6.36 and price to cash ratio remained 40.17. As far as the returns are concern, the return on equity was recorded as 26.70% and return on investment was 10.70% while its return on asset stayed at 10.40%. The firm has total debt to equity ratio measured as 0.61.

BorgWarner Inc. (NYSE:BWA) [Trend Analysis] try to make new thrust in street and making different trends, stocks trading ended with 0.81% to $41.10. Finally, analysts shed their light over the BWA price targets; maintaining price high target of 52.00 while at average the price target was 40.63 in contrast with the current price of 41.10. The price targets are usually acts as the boosters or blasters in the performance of stock. A higher price target would definitely provide confidence to investors during the trading action, consideration given by Wall Street Journal.

So does the rankings given by analysts; let us highlight rankings table and we had 8 analysts recommending BUY ratings for current month and for previous month 10 stands on similar situation; while 10 for the current month as compared to 7 analysts recommending for HOLD from the pool for previous month. While 2 stands at overweight and 2 analysts gave Underweight and 2 out of pool consider it as Sell for current month. For the overall, consensus ratings were for Hold. The share price of BWA attracts active investors, as stock price of week volatility recorded 2.56%. The stock is going forward to its 52-week low with 50.83% and lagging behind from its 52-week high price with -2.10%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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