While Colony NorthStar Inc's (NYSE:CLNS) Strong Sell recommendation garners some advantage from being a component in an industry group that is ranked above average in investment attractiveness, its sector is ranked well below average in attractiveness which may counterweigh this in whole or in part. Factors in this recommendation include a numerical calculation of risk/reward that is unattractive, an analytical score that is below average, and a ranking in the company's sector group that is in the bottom eighth, and a ranking in its industry group that is in the bottom eighth. The a Strong Sell rating for CLNS is based on the Portfolio Grader stock evaluator. With exclusive fundamental and quantitative analytical, this analytical tool evaluates nearly 5,000 stocks weekly. CLNS has maintained this ranking for 2 months.
CLNS is a constituent of the 219 company Real Estate Investment Trusts GICS industry group, which is a segment of the 990 company GICS Finance sector. CLNS has a market value of $5.1 billion which is in the upper half of its industry group The stock's Portfolio Grader ranking currently places it 214 among the 219 companies in this industry group, a position that is well below-average.
Currently, Portfolio Grader ranks the Finance sector number 16 among the 20 sectors in its universe putting it in the bottom quartile of all the GICS sectors. The Real Estate Investment Trusts industry group is ranked 58 among the 129 industry groups within the GICS sectors, placing it near the average in terms of the Proprietary Quantitative Score scoring system.
Colony NorthStar has attained below-average scores in 6 of the 8 fundamental areas appraised by Portfolio Grader in the ranking of company stocks.
CLNS's operational scores provide mixed results with a ranking for sales growth that is well above the industry average, while the scores for earnings growth and operating margin are well 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 worse than average. CLNS's scores for return on equity and cash flow are worse than its industry group average. Colony NorthStar's fundamental scores give CLNS a place in the bottom quartile of the industry group.
Portfolio Grader quantitatively gauges CLNS's shares using the Proprietary Quantitative Score. This metric looks at CLNS's shares from the aspect of risk/reward. This proprietary scoring approach considers the relative value of CLNS's shares based on the recent $9.14 share 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 below-average in its industry group compared to its peers.
The 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.
