Lackluster Industry Group Rank Penalizes BHP Billiton (BBL) Rating

BBL stock a hold in latest weekly rating.

By Portfolio Grader

Currently, BHP Billiton Plc (NYSE:BBL) has a Hold using Louis Navellier's methodology for investing and his Portfolio Grader stock evaluator. BBL has maintained this ranking for the last month.

BBL ranks in the top decile in its industry group, Metals & Mining, and in the top 10% of its sector group, Materials, with a market value of $39.4 billion.

Currently, Portfolio Grader ranks the Materials sector number 3 among the 12 sectors in its universe putting it in the top half of all the GICS sectors. The Metals & Mining industry group is ranked 10 among the 69 industry groups within the GICS sectors, placing it above-average in terms of the Navellier scoring system.

Within the Portfolio Grader stock ranking system BHP Billiton has attained above-average scores in 1 of the 8 fundamental areas appraised by Portfolio Grader and average or below-average scores in 7 of the areas evaluated in the ranking of company stocks.

BBL's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum worse than average. BBL's metrics for cash flow and return on equity are worse than its industry group average. BHP Billiton's fundamental scores give BBL a place in the top half of the industry group.

The Navellier Proprietary Quantitative Score is used by Portfolio Grader to gauge BBL's shares from the aspect of risk/reward. This exclusive scoring system evaluates 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. Based on this risk/reward calculation, BBL currently scores as 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.

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