NEW YORK ( TheStreet) -- Shares of Rackspace Hosting ( RAX) and Curtiss-Wright ( CW) reached 52-week highs on Tuesday. Both of the companies received a buy rating from TheStreet Ratings.
Rackspace Hosting The ccoud computing software maker reported fourth-quarter earnings Tuesday of $25 million, or 18 cents a share, on revenue of $283.3 million in revenue. Analysts were expecting earnings of 15 cents a share on revenue of $281 million. The stock was upgraded to buy from hold by Benchmark analysts on Tuesday. "Rackspace traded to $52 after-hours, or 16x 2012E
earnings before interest, taxes, depreciation and amortization ," Benchmark analysts wrote in a report Tuesday. "But as the pure-play cloud leader with robust operating momentum and 30% organic EBITDA growth, we believe the stock can go higher." Shares of Rackspace hit a 52-week high Tuesday of $55.26. The stock's 52-week low of $30.34 was set on Oct. 4. Rackspace has a forward P/E of 47.69; the average for Internet companies is 23.57. For comparison, Akamai ( AKAM) and IAC/InterActiveCorp ( IACI) both have lower forward P/Es of 20.65 and 14.08, respectively. Thirteen of the 21 analysts have a buy rating on Rackspace. Seven analysts said it's a hold and one rated it a sell. Rackspace gets a B grade from TheStreet Ratings and a $65.17 price target. The stock has increased 27.37% year to date.