2 Stocks Hitting 52-Week Highs: Rackspace, Curtiss-Wright

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.

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Curtiss-Wright

The precision components manufacturer was upgraded to outperform from neutral by Wedbush analysts on Tuesday.

Curtiss-Wright is scheduled to report fourth-quarter earnings on Tuesday after the close. Analysts, on average, expect profit of 84 cents a share on revenue of $573.63 million.

"While the stock is up 51% since hitting a low of $26.16 in September (compared to a 20% increase over the same period for the broader S&P 500 and a 27% increase in the iShares A&D Index), we believe there is further upside from commercial market catalysts and a continued reduction in defense risk overhang," Wedbush analysts wrote in a report Tuesday.

Shares of Curtiss-Wright hit a 52-week high on Tuesday of $41.91. The stock's 52-week low of $25.67 was set on Sept. 22.

Curtiss-Wright has an estimated price-to-earnings ratio for next year of 13.50; the average for defense companies is 13.19. For comparison, AeroVironment ( AVAV) has a forward P/E of 19.29 and Flir Systems' ( FLIR)forward P/E is 13.13.

Five of the analysts covering Curtiss-Wright gave it a buy rating and another five said it was a hold. One analyst gave the stock a sell rating.

TheStreet Ratings gives Curtiss-Wright a B+ grade and a $45.03 price target. The stock has risen 15.74% year to date.

-- Written by Alexandra Zendrian

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