Rackspace Hosting (f/k/a RAX)

[Belek]

Why Rackspace Hosting (RAX) Could Be Positioned for a Surge?
Zacks By Zacks Equity Research
14 hours ago
Rackspace Hosting, Inc. (RAX) is an Internet Services firm that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on RAX’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Rackspace Hosting could be a solid choice for investors.

Current Quarter Estimates for RAX

In the past 30 days, 8 estimates have gone higher for Rackspace Hosting while 1 has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 14 cents a share 30 days ago, to 16 today, a move of 14.3%.

Current Year Estimates for RAX

Meanwhile Rackspace Hosting’s current year figures are also looking quite promising, with 11 estimates moving higher in the past month, compared to 1 lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 60 cents per share 30 days ago to 71 cents per share today, an increase of 18.3%.

Bottom Line

The stock has also started to move higher lately, adding 26.0% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #2 (Buy) stock to profit in the near future.