Facebook, Inc. (NASDAQ:FB) persists its position slightly strong in context of buying side, while shares price increased 1.02% during latest trading session. Morgan Stanley lifted its 12-month price target on the Facebook (FB) stock to $160 from $150. Analyst Brian Nowak reiterated an overweight rating on Facebook shares, and stated he believes the firm will beat the fiscal 2017 income consensus by 6% and the adjusted EPS estimate by 10%, even if ad load growth slows by 50%. Some investors have expressed concerns that a slowdown in ad growth could lead to “material income deceleration” in the second half of the year. Those fears have weighed on Facebook’s shares, which are now trading around 40% below its median relative P/E multiple, according to Nowak. However, he believes that while ad load growth “will slow,” Facebook’s “large and growing scale and engagement are even more important.”
Analysts Practices; to watch unbiased undervalue securities, there is need to see following technical rations. FB holds price to earnings ratio of 62.76 that presents much better indication for a stock’s value than the market price alone. Based on historic views, the average P/E ratio in market fluctuates between 15 to 25, but alone low P/E ratio does not necessarily mean that a company is undervalue.
Narrow down focus to other ratios, the co has current ratio of 12.20 that indicates if FB lies in 1.3% to 3% then it is acceptable for both active and passive investors, but sometimes its varies industry to industry. Generally, it indicates good short-term financial strength. Street is more conscious on this after SunEdison, Inc. case. To make strengthen these views, the active industry firm has Quick Ratio of 12.20, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.00, sometimes its remain same with long term debt to equity ratio.
Following previous ticker characteristics, Ciena Corporation (NYSE:CIEN) also run on active notice, stock price inched down -1.00% after traded at $22.75 in most recent trading session. CIEN has price to earnings ratio of 204.95 and the price to current year EPS stands at 125.30%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be 20.34%. Moving toward ratio analysis, it has current ratio of 1.90 and quick ratio was calculated as 1.70. The debt to equity ratio appeared as 2.05 for seeing its liquidity position.
Taking notice on volatility measures, price volatility of stock was 3.56% for a week and 2.53% for a month. The price volatility’s Average True Range for 14 days was 0.62. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 1.90 out of 1-5 scale with week’s performance of 4.69%. CIEN’s institutional ownership was registered as 98.10%, while insider ownership was 2.20%.