When evaluating stocks, many investors also look to analysts for future earnings predictions and growth. Analysts are predicting $0.67 per share in earnings next quarter and $2.76 for the current year. In comparing the current price level of the equity to their moving averages, the shares are trading 0.33 off of the 50-day average of $51.65 and 1.62 away from the 200-day moving average of $50.36.
Another important factor to consider when evaluating a stock’s current and future value are the 52 week high and low levels. As of the most recent bid at the time of writing, Microsoft Corporation shares are trading -8.57% away from the 52-week high mark of 56.85 and +30.87% off the 52-week bottom of 39.72.
Taking a step further, investors might also consider evaluating a firm’s PEG ratio, which illustrates the relationship between stock price, earning per share, and the company’s growth rate. A firm with a PEG ratio below 1 is considered undervalued. A company with a PEG ratio around 1 is considered fairly valued. A company with a PEG ratio greater than 1 is considered overvalued. The stock has a current PEG of 2.00.
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