Valuing 2 Stocks Using Ratios and Multiples: Geron Corporation (GERN), Dollar Tree, Inc. (DLTR)

Geron Corporation (NASDAQ:GERN) shares were trading higher by 1.57 percent ($0.03) at $1.94 a piece in Thursday’s session. It had closed the previous session at $1.91. GERN trades with a P/S ratio of 307.3. This compares with the industry’s 144.04 and the wider sector’s 6.56. A low price-to-sales ratio, typically less than 1.0, is considered a good value. . Shares of GERN have downtrended -11.82% in the past three months, while the S&P 500 has moved -19.28% in that time. Geron Corporation (GERN) has a market cap of $307.3 million and over the last 12 months, Geron Corporation (NASDAQ:GERN) has gone weaker by -7.62%. During the last 52 weeks, the (NASDAQ:GERN) price has been as high as $3.15 and as low as $1.74. Geron Corporation earnings have risen with an annualized rate of 24.9% over the last 5 years.

Geron Corporation (Mean Target Price: $3.75)

The average 1-year price target for Geron Corporation (GERN) — averaging the work of different analysts — reveals a mean PT of $3.75/share. That’s a potential 93.3 increase relative to where Geron Corporation (NASDAQ:GERN) has been trading recently. The current price is seen ranging between $1.86 and $1.955. There are brokerage firms with lower targets than the average, including one setting a price target of $2.5. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $5.

Geron Corporation (GERN) Consensus Recommendation

The collective rating of 2.7 for Geron Corporation (NASDAQ:GERN) also leans strongly towards the neutral end of the spectrum. Of the 3 analysts surveyed by Reuters that track GERN 2 of them rate its stock a hold. The other 1, though not evenly; between analysts who think you should buy Geron Corporation versus those who think you should sell it. A 1 analysts rate it as either a buy or a strong buy, while0 believe that investors should either steer clear of GERN or, if they already own its stock, sell it.

Is Dollar Tree, Inc. (NASDAQ:DLTR) Cheap From Peers?

Dollar Tree, Inc. (DLTR) pulled off a 1.57 percent gain and now trades for $111.35. DLTR comes in with a P/S ratio of 1.2 that’s greater than 1, potentially implying that it could be expensive relative to the overall sector (2825.42) and its peers (1.39). Also, it has an estimated price-earnings (P/E) multiple of 20.45 and a trailing 12-month price-earnings (P/E) multiple of 26.54. During the last 52 weeks, the price has been as high as $111.63 and as low as $65.63. Dollar Tree, Inc. (NASDAQ:DLTR) earnings have risen with a quarterly rate of 25.6% over the last 5 years. Shares of DLTR have increased 22.05% in the past three monthswhile the S&P 500 has gained 11.73% in that time.

Dollar Tree, Inc. (Price Objective: $109.28)

Dollar Tree, Inc. (NASDAQ:DLTR) has a market cap of $25.86 billion and over the last 12 months, DLTR has risen by 43.11%. The average 1-year price target for (DLTR) reveals an average price target of $109.28 per share. That’s a potential -1.86 fall from where (NASDAQ:DLTR) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $78. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $128.

Analyst Thoughts About Dollar Tree, Inc. (NASDAQ:DLTR)

The consensus recommendation — averaging the work of 28 analysts — of 2.1 for Dollar Tree, Inc. (DLTR) points to moderate case. Of the analysts surveyed by Reuters that track Dollar Tree, Inc. 11 of them rate its stock a hold. The other 17 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 17 analysts rate it as either a buy or a strong buy, while 0 believe that investors should either steer clear of (NASDAQ:DLTR) or, if they already own its stock, sell it.

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