The Bottom Line on Kansas City Southern (KSU), Red Hat, Inc. (RHT)

Kansas City Southern (NYSE:KSU) shares were trading higher by 1.83 percent ($2.02) at $112.14 a piece in Thursday’s session. It had closed the previous session at $110.12. KSU trades with a P/S ratio of 4.59. This is higher than the industry’s 2.78 but lower compared with the wider sector’s 9.8. 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 19.04 and a trailing 12-month price-earnings (P/E) multiple of 22.01. Shares of KSU have uptrended 8.42% in the past three months, while the S&P 500 has moved 0.31% in that time. Kansas City Southern (KSU) has a market cap of $11.56 billion and over the last 12 months, Kansas City Southern (NYSE:KSU) has gone stronger by 26.41%. During the last 52 weeks, the (NYSE:KSU) price has been as high as $110.99 and as low as $79.05. Kansas City Southern earnings have risen with an annualized rate of 8.1% over the last 5 years.

Kansas City Southern (Mean Target Price: $115.11)

The average 1-year price target for Kansas City Southern (KSU) — averaging the work of different analysts — reveals a mean PT of $115.11/share. That’s a potential 2.65 increase relative to where Kansas City Southern (NYSE:KSU) has been trading recently. The current price is seen ranging between $109.58 and $112.88. There are brokerage firms with lower targets than the average, including one setting a price target of $90. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $130.

Kansas City Southern (KSU) Consensus Recommendation

The collective rating of 2.4 for Kansas City Southern (NYSE:KSU) also leans strongly towards the neutral end of the spectrum. Of the 19 analysts surveyed by Reuters that track KSU 11 of them rate its stock a hold. The other 8, though not evenly; between analysts who think you should buy Kansas City Southern versus those who think you should sell it. A 8 analysts rate it as either a buy or a strong buy, while0 believe that investors should either steer clear of KSU or, if they already own its stock, sell it.

Is Red Hat, Inc. (NYSE:RHT) Cheap From Peers?

Red Hat, Inc. (RHT) pulled off a 1.82 percent gain and now trades for $126.76. RHT comes in with a P/S ratio of 8.5 that’s greater than 1, potentially implying that it could be expensive relative to the overall sector (2.69) and its peers (5.57). Also, it has an estimated price-earnings (P/E) multiple of 38.66 and a trailing 12-month price-earnings (P/E) multiple of 76.04. During the last 52 weeks, the price has been as high as $129.61 and as low as $68.54. Red Hat, Inc. (NYSE:RHT) earnings have risen with a quarterly rate of 16.3% over the last 5 years. Shares of RHT have increased 17.92% in the past three monthswhile the S&P 500 has gained 9.74% in that time.

Red Hat, Inc. (Price Objective: $120.38)

Red Hat, Inc. (NYSE:RHT) has a market cap of $22.47 billion and over the last 12 months, RHT has risen by 60.23%. The average 1-year price target for (RHT) reveals an average price target of $120.38 per share. That’s a potential -5.03 fall from where (NYSE:RHT) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $100. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $136.

Analyst Thoughts About Red Hat, Inc. (NYSE:RHT)

The consensus recommendation — averaging the work of 30 analysts — of 2.1 for Red Hat, Inc. (RHT) points to moderate case. Of the analysts surveyed by Reuters that track Red Hat, Inc. 7 of them rate its stock a hold. The other 23 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 21 analysts rate it as either a buy or a strong buy, while 2 believe that investors should either steer clear of (NYSE:RHT) or, if they already own its stock, sell it.