Is It Undervalued? Look at the P/E Ratio: Deere & Company (DE), Twilio Inc. (TWLO)

Deere & Company (NYSE:DE) shares were trading higher by 1.53 percent ($2.52) at $167.46 a piece in Thursday’s session. It had closed the previous session at $164.94. DE trades with a P/S ratio of 1.81. This is higher than the industry’s 1.67 but lower compared with the wider sector’s 9.49. 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 17.28 and a trailing 12-month price-earnings (P/E) multiple of 25.19. Shares of DE have uptrended 31.06% in the past three months, while the S&P 500 has moved 20.03% in that time. Deere & Company (DE) has a market cap of $53.86 billion and over the last 12 months, Deere & Company (NYSE:DE) has gone stronger by 58.41%. During the last 52 weeks, the (NYSE:DE) price has been as high as $168.44 and as low as $103.99. Deere & Company earnings have declined with an annualized rate of -2.6% over the last 5 years.

Deere & Company (Mean Target Price: $163.1)

The average 1-year price target for Deere & Company (DE) — averaging the work of different analysts — reveals a mean PT of $163.1/share. That’s a potential -2.6 decrease relative to where Deere & Company (NYSE:DE) has been trading recently. The current price is seen ranging between $163.77 and $167.55. There are brokerage firms with lower targets than the average, including one setting a price target of $127. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $200.

Deere & Company (DE) Consensus Recommendation

The collective rating of 2.3 for Deere & Company (NYSE:DE) also leans strongly towards the neutral end of the spectrum. Of the 23 analysts surveyed by Reuters that track DE 10 of them rate its stock a hold. The other 13, though not evenly; between analysts who think you should buy Deere & Company versus those who think you should sell it. A 12 analysts rate it as either a buy or a strong buy, while1 believe that investors should either steer clear of DE or, if they already own its stock, sell it.

Is Twilio Inc. (NYSE:TWLO) Cheap From Peers?

Twilio Inc. (TWLO) pulled off a 1.52 percent gain and now trades for $26.03. TWLO comes in with a P/S ratio of 6.6 that’s greater than 1, potentially implying that it could be expensive relative to the overall sector (2.76) and its peers (5.69). . . During the last 52 weeks, the price has been as high as $34.95 and as low as $22.8. Twilio Inc. (NYSE:TWLO) earnings have declined with a quarterly rate of 0% over the last 5 years. Shares of TWLO have sank -20.32% in the past three monthswhile the S&P 500 has dropped -27.03% in that time.

Twilio Inc. (Price Objective: $36.7)

Twilio Inc. (NYSE:TWLO) has a market cap of $2.41 billion and over the last 12 months, TWLO has declined by -6.84%. The average 1-year price target for (TWLO) reveals an average price target of $36.7 per share. That’s a potential 40.99 gain from where (NYSE:TWLO) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $33. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $40.

Analyst Thoughts About Twilio Inc. (NYSE:TWLO)

The consensus recommendation — averaging the work of 12 analysts — of 1.9 for Twilio Inc. (TWLO) points to bullish case. Of the analysts surveyed by Reuters that track Twilio Inc. 3 of them rate its stock a hold. The other 9 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 9 analysts rate it as either a buy or a strong buy, while 0 believe that investors should either steer clear of (NYSE:TWLO) or, if they already own its stock, sell it.

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