Is It Overvalued? Look at the P/S Ratio: OGE Energy Corp. (OGE), Finisar Corporation (FNSR)

OGE Energy Corp. (NYSE:OGE) shares were trading higher by 0.31 percent ($0.11) at $35.12 a piece in Monday’s session. It had closed the previous session at $35.01. OGE trades with a P/S ratio of 3.11. This is higher than the industry’s 2.41 but lower compared with the wider sector’s 10.35. A low price-to-sales ratio, typically less than 1.0, is considered a good value. Also, it has an estimated price-earnings (P/E) multiple of 17.37 and a trailing 12-month price-earnings (P/E) multiple of 18.39. Shares of OGE have downtrended -1.1% in the past three months, while the S&P 500 has moved -6.55% in that time. OGE Energy Corp. (OGE) has a market cap of $7.12 billion and over the last 12 months, OGE Energy Corp. (NYSE:OGE) has gone stronger by 15.37%. During the last 52 weeks, the (NYSE:OGE) price has been as high as $37.4 and as low as $30.1. OGE Energy Corp. earnings have declined with an annualized rate of -0.4% over the last 5 years.

OGE Energy Corp. (Mean Target Price: $36.57)

The average 1-year price target for OGE Energy Corp. (OGE) — averaging the work of different analysts — reveals a mean PT of $36.57/share. That’s a potential 4.13 increase relative to where OGE Energy Corp. (NYSE:OGE) has been trading recently. The current price is seen ranging between $34.89 and $35.43. There are brokerage firms with lower targets than the average, including one setting a price target of $32. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $40.

OGE Energy Corp. (OGE) Consensus Recommendation

The collective rating of 2.7 for OGE Energy Corp. (NYSE:OGE) also leans strongly towards the neutral end of the spectrum. Of the 7 analysts surveyed by Reuters that track OGE 4 of them rate its stock a hold. The other 3, though not evenly; between analysts who think you should buy OGE Energy Corp. versus those who think you should sell it. A 2 analysts rate it as either a buy or a strong buy, while1 believe that investors should either steer clear of OGE or, if they already own its stock, sell it.

Is Finisar Corporation (NASDAQ:FNSR) Cheap From Peers?

Finisar Corporation (FNSR) pulled off a 0.32 percent gain and now trades for $19.02. FNSR comes in with a P/S ratio of 1.44 that’s greater than 1, potentially implying that it could be expensive relative to the overall sector (2.86) and its peers (1.49). Also, it has an estimated price-earnings (P/E) multiple of 10.27 and a trailing 12-month price-earnings (P/E) multiple of 8.93. During the last 52 weeks, the price has been as high as $36.85 and as low as $18.1. Finisar Corporation (NASDAQ:FNSR) earnings have risen with a quarterly rate of 8.8% over the last 5 years. Shares of FNSR have sank -19.95% in the past three monthswhile the S&P 500 has dropped -23.46% in that time.

Finisar Corporation (Price Objective: $28.4)

Finisar Corporation (NASDAQ:FNSR) has a market cap of $2.09 billion and over the last 12 months, FNSR has declined by -38.74%. The average 1-year price target for (FNSR) reveals an average price target of $28.4 per share. That’s a potential 49.32 gain from where (NASDAQ:FNSR) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $22. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $35.

Analyst Thoughts About Finisar Corporation (NASDAQ:FNSR)

The consensus recommendation — averaging the work of 14 analysts — of 1.9 for Finisar Corporation (FNSR) points to bullish case. Of the analysts surveyed by Reuters that track Finisar Corporation 2 of them rate its stock a hold. The other 12 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 11 analysts rate it as either a buy or a strong buy, while 1 believe that investors should either steer clear of (NASDAQ:FNSR) or, if they already own its stock, sell it.