Facebook Inc (NASDAQ:FB) is ranked as a Strong Buy using the stock evaluator from Portfolio Grader, which incorporates Louis Navellier's investing system. The shares have been upgraded from a Buy to a Strong Buy in the last week.
The company is a $519.9 billion in market value constituent of the Internet Software & Services GICS industry group where the stock's Portfolio Grader ranking places it 16 among the 132 companies in this industry group, putting in the top quartile. FB is ranked in the top quartile of the sector with a ranking of 75 among the 707 companies in the sector of its Information Technology sector and 297 in the Portfolio Grader company universe.
Currently, Portfolio Grader ranks the Information Technology sector number 3 among the 12 sectors in its universe putting it in the top half of all the GICS sectors. The Internet Software & Services industry group is ranked 14 among the 69 industry groups within the GICS sectors, placing it above-average in terms of the Navellier scoring system.
Facebook has received above-average scores in 6 of the 8 fundamental areas evaluated by Portfolio Grader in the ranking of company stocks.
FB's operational scores are a source of strength with a ranking for sales growth, operating margin and earnings growth that are well above average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are significantly better than average, while the score for earnings momentum is worse than average. FB's score for return on equity is decidedly better than its industry group average but its grade for cash flow is below-average. These fundamental scores give Facebook a position in the top decile of the industry group.
Quantitatively, Portfolio Grader uses the Navellier Proprietary Quantitative Score to gauge FB's shares from the perspective of risk/reward. This exclusive scoring approach considers 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, FB currently scores well above-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.
