Price Targets in Focus: Best Buy Co., Inc. (NYSE:BBY), Caterpillar, Inc. (NYSE:CAT)

During the most recent trading session, Best Buy Co., Inc. (NYSE:BBY) shares traded +14.82%. Tracking the stock price in relation to moving averages may provide enhanced perspective on stock performance. After a recent look, the stock has been seen trading $7.32 off of the 50-day moving average of $50.57 and $11.60 separated from the 200-day moving average of $46.29. Taking a further look from a different perspective, the stock has been recently recorded -0.02% off of the 52-week high of 57.90 and +101.29% apart from the 52-week low of 28.76. Monitoring stock price activity relative to moving averages and the highs and lows for the past year might help with future stock price value assessment. 

Price Target in Focus

While monitoring stock technicals is important, most investors are more concerned with where the stock might be going now.  Equity research analysts have provided views on where they believe the stock will be trading in the future. According to Thomson Reuters, sell-side analysts are projecting a consensus target price of $48.70 on company shares. This is a near-term estimate for the next 12-18 months.

Currently, Best Buy Co., Inc. Common Stock has a price to earnings ratio of 15.21. Analysts and investors may also opt to evaluate a company's PEG or price to earnings growth ratio. The stock currently has a PEG Ratio of 1.19.

The Wall Street analysts who cover Caterpillar, Inc. (NYSE:CAT) shares are providing price target projections on the company. They project that the shares will move to $101.73 within the upcoming year. The number they've arrived at is calculated by, long known as a provider of top-notch investment research. From the analysts polled by Zack's Research, the highest estimate stands at $121.5 and the lowest is at $60 for the stock. This number may be different from what First Call has published for the consensus target estimate. Analysts that routinely cover the company may use varying techniques in order to create a future target price. Because of the different methods that analysts can use, targets may differ greatly between analysts.

Analyst Ratings In View

Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for institutions and retail investors alike. This the calculated average of the actual recommendations (strong buy, hold, sell etc.) made for a given stock. The ABR is typically displayed with decimals (e.g. 1.52) versus the Zacks Rank, which is only shown in whole numbers (e.g. 1, 2, 3, etc.). This simplifies brokerage recommendations, which can become complicated. Caterpillar, Inc. (NYSE:CAT)'s shares currently have an ABR of 2.38. A 1 rating would point to a Strong Buy, and a score of 5 would signify a Strong Sell rating. The average broker rating assists investors by providing them with a general feel for analyst sentiment on company shares.  The success of analyst predictions can be tracked for institutional investors through First Call.  Retail investors can use tools such as TipRanks or Marketbeat in order to track analyst performance. 

During this fiscal period, Street analysts are projecting $1.09 earnings/share. This represents the current Zacks consensus EPS. For the period which closed on 2017-03-31, Caterpillar, Inc. (NYSE:CAT) dialed in an EPS of $1.28, creating a Surprise Factor of 106.45% (the difference between analyst projections and actual numbers). Curious investors will be awaiting 2017-07-25, the date when Caterpillar, Inc. (NYSE:CAT) will release their quarterly results.  A surprise factor in either direction may result in significant stock movement immediately and in the days following the release.  Firms that consistently miss expectations can experience a downtrend over time.  Whereas stocks that consistently outperform analyst expectations, can often see positive stock movement. 

Leave a Comment