Industry Group Rank Metrics Make AK Steel Holding (AKS) a Strong Sell

AKS stock a strong sell in latest weekly rating.

By Portfolio Grader

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The current recommendation of Strong Sell for AK Steel Holding Corp (NYSE:AKS) has been derived by using the Portfolio Grader stock evaluator of Louis Navellier, which incorporates his investing system. AKS has maintained this ranking for the last month.

AKS is a constituent of the 122 company Metals & Mining GICS industry group, which is part of the 265 company GICS Materials sector. The market value of AKS is $1.8 billion which falls in the top half of its industry group The current Portfolio Grader ranking for AKS puts it 122 among the 122 companies in this industry group, a spot that is well below-average.

Currently, Portfolio Grader ranks the Materials sector number 4 among the 12 sectors in its universe putting it in the second quartile of all the GICS sectors. The Metals & Mining industry group is ranked 20 among the 69 industry groups within the GICS sectors, placing it near the average in terms of the Navellier scoring system.

AK Steel Holding has earned below-average scores in 7 of the 8 fundamental areas appraised by Portfolio Grader in the ranking of company stocks.

AKS's operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are substantially below average. Scores for visibility of earnings are a source of great concern with a ranking for earnings revisions, earnings surprises and earnings momentum that are much worse than average. AKS's metrics for return on equity and cash flow are significantly worse than its industry group average. These fundamental scores give AK Steel Holding a position in the bottom quartile of the industry group.

Portfolio Grader uses the Navellier Proprietary Quantitative Score to view AKS's shares from the aspect of risk/reward. This unique scoring methodology balances 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. Using this risk/reward calculation, AKS 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.


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