The rationale for Range Resources's (NYSE:RRC) Strong Sell recommendation is the result of a quantitative risk/reward calculation that is among the least attractive, analytical scoring that is near 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. RRC's recommendation is further impacted by being in a sector and an industry group that are ranked below average in attractiveness. The a Strong Sell rating for RRC is based on the Portfolio Grader stock evaluator. The methodology for investing incorporated in this analytical tool evaluates and ranks nearly 5,000 stocks each week from a fundamental and quantitative perspective. The current Portfolio Grader recommendation on the shares has been in place for 4 months.
The company is one of 133 companies within the Oil & Gas Production GICS industry group, which is in turn part of the 186 company GICS Energy Minerals sector. RRC has a market value of $4.0 billion which is in the top 25% of its industry group The stock's Portfolio Grader ranking currently places it 122 among the 133 companies in this industry group, a position that is well below-average.
The Energy Minerals sector is ranked number 18 among the 20 sectors in the Portfolio Grader universe putting it in the bottom quartile of all the GICS sectors. The Oil & Gas Production industry group is ranked 104 among the 129 industry groups within the GICS sectors, placing it well below-average in terms of the Proprietary Quantitative Score scoring system.
Range Resources has realized below-average scores in 3 of the 8 fundamental areas analyzed by Portfolio Grader in the ranking of company stocks.
RRC's operational scores provide mixed results with a ranking for sales growth that is well above the industry average but rankings for operating margin and earnings growth are below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are discernibly better than average, while the score for earnings momentum is much worse than average. RRC's scores for cash flow and return on equity are worse than its industry group average. Based on these fundamental scores, Range Resources places in the third quartile of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to measure RRC's shares from the viewpoint of risk/reward. This exclusive scoring approach balances the relative value of the company's shares based on the recent $15.32 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Using this risk/reward calculation, RRC 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.