Currently, Facebook Inc (NASDAQ:FB) has a Strong Buy using the Portfolio Grader stock evaluator of Louis Navellier, which incorporates his investing methodology. FB has maintained this ranking for the last month.
FB ranks in the top decile in its industry group, Internet Software & Services, and in the top decile of sector group, Information Technology, with a market value of $514.9 billion.
Portfolio Grader currently ranks the Information Technology sector number 3 among the 12 sectors in its universe putting it in the second quartile of all the GICS sectors. The Internet Software & Services industry group is ranked 5 among the 69 industry groups within the GICS sectors, placing it well above-average in terms of the Navellier scoring system.
Facebook has received above-average scores in 6 of the 8 fundamental metrics used by Portfolio Grader in the ranking of company stocks.
The company'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 strikingly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Facebook places in the top decile of the industry group.
Portfolio Grader quantitatively measures FB's shares using the Navellier Proprietary Quantitative Score. This metric looks at FB's shares from the viewpoint of risk/reward. This unique scoring methodology assesses 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, 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.