As one of the 362 companies in the GICS Energy sector Chesapeake Energy Corp (NYSE:CHK) is a member of the 288 company Oil Gas & Consumable Fuels GICS industry group within this sector. CHK's market value is $3.6 billion which falls in the top half of its industry group. The stock's Portfolio Grader ranking currently places it 237 among the 288 companies in this industry group, a position that is well below-average; squarely in the bottom quartile of the sector with a ranking of 283 among the 362 companies in the sector, and number 4,016 in the nearly 5,000 company Portfolio Grader universe.
CHK has a current recommendation of Sell using Louis Navellier's methodology for investing and his Portfolio Grader stock evaluator. The current overall Portfolio Grader recommendation on the shares has changed twice in the past month, which represents a greater level of change than is typical.
Portfolio Grader currently ranks the Energy sector number 12 among the 12 sectors in its universe putting it as the least attractive sector of all the GICS sectors. The Oil Gas & Consumable Fuels industry group is ranked 60 among the 69 industry groups within the GICS sectors, placing it well below-average in terms of the Navellier scoring system.
The company scores are below-average in 5 of the 8 fundamental metrics used by Portfolio Grader in the ranking of company stocks.
CHK's operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are considerably below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are better than average, while the score for earnings momentum is much worse than average. CHK's grade for return on equity is better than its industry group average but its ranking for cash flow is well below-average. Chesapeake Energy's fundamental scores give CHK a place in the third quartile of the industry group.
Portfolio Grader quantitatively measures CHK's shares using the Navellier Proprietary Quantitative Score. This metric looks at CHK's shares from the perspective of risk/reward. This unique scoring methodology takes into account the relative value of CHK'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, the company 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.