The current recommendation of Strong Buy for Facebook Inc (NASDAQ:FB) is derived using the approach to investing of Louis Navellier and his Portfolio Grader stock evaluator. FB has maintained this ranking for the last month.
FB is one of the 702 companies in the GICS Information Technology sector and is a constituent of the 130 company Internet Software & Services GICS industry group within this sector. The market value of FB is $508.8 billion which places it in the top decile in its industry group Currently, the stock's Portfolio Grader ranking places it 21 among the 130 companies in this industry group, giving it a well above-average position.
The Information Technology sector is ranked number 3 among the 12 sectors in the Portfolio Grader universe putting it in the second quartile of all the GICS sectors. The Internet Software & Services 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 Facebook has received above-average scores in 6 of the 8 fundamental metrics used.
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 markedly 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.
The Navellier Proprietary Quantitative Score is used by Portfolio Grader to view FB's shares from the viewpoint of risk/reward. This proprietary scoring system assesses the relative value of FB'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, the company 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.