Earnings Visibility Keeps Simon Property Group (SPG) a Sell

The current recommendation of Sell for Simon Property Group Inc (NYSE:SPG) is computed using Louis Navellier's methods for investing and his Portfolio Grader stock evaluator. SPG has recently seen its Portfolio Grader rating upgraded from a Strong Sell to a Sell.

The company ranks in the top decile in its industry group, Equity Real Estate Investment Trusts (REITs), and in the top decile of sector group, Real Estate, with a market value of $51.2 billion.

The Real Estate sector is ranked number 8 among the 12 sectors in the Portfolio Grader universe putting it in the third quartile of all the GICS sectors. The Equity Real Estate Investment Trusts (REITs) industry group is ranked 52 among the 69 industry groups within the GICS sectors, placing it well below-average in terms of the Navellier scoring system.

The scores realized by SPG are average or below-average scores in 6 of the 8 areas analyzed by Portfolio Grader in the ranking of company stocks.

SPG's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are mixed, with rankings for earnings revisions and earnings momentum that are worse than average, while the score for earnings surprises is better than average. SPG's score for return on equity is decidedly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Simon Property Group places in the top half of the industry group.

Quantitatively, Portfolio Grader uses the Navellier Proprietary Quantitative Score to measure SPG's shares from the viewpoint of risk/reward. This exclusive scoring system takes into account the relative value of the company's shares based on the current price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, SPG currently scores well below-average in its industry group compared to its peers.

Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.

Commentary provided by UpTick Data Technologies.


Article printed from InvestorPlace Media, https://investorplace.com/2017/10/earnings-visibility-keeps-simon-property-group-spg-a-sell/.

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