Portfolio Grader currently ranks Shutterfly Inc (NASDAQ:SFLY) a Sell. The methods for fundamental and quantitative metrics used in this analytical tool assesses and ranks nearly 5,000 stocks each week. The current Portfolio Grader recommendation on the shares has been in place for 3 months. The Sell recommendation for Shutterfly Inc is the conclusion of a process of analysis that is proprietary which generated results that were below average in 4 areas: a ranking in its sector group that is in the bottom quarter, ranking in its industry group that is in the bottom quarter, analytical scores that are near average, and a numerical calculation of risk/reward that is below average; and produced above average in 2 areas: an economic sector ranked above average in attractiveness, and an industry group rated above average in attractiveness.
The company is one of 93 companies within the Internet Software/Services GICS industry group, which is in turn part of the 326 company GICS Technology Services sector. SFLY has a market value of $1.7 billion which is in the upper half of its industry group The stock's Portfolio Grader ranking currently places it 73 among the 93 companies in this industry group, a position that is well below-average.
The Technology Services sector is ranked number 2 among the 20 sectors in the Portfolio Grader universe putting it in the top quartile of all the GICS sectors. The Internet Software/Services industry group is ranked 26 among the 129 industry groups within the GICS sectors, placing it above-average in terms of the Proprietary Quantitative Score scoring system.
The company scores are below-average in 6 of the 8 areas appraised by Portfolio Grader in the ranking of company stocks.
SFLY's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are mixed, with a ranking for earnings surprises that is worse than average, while the scores for earnings revisions and earnings momentum are better than average. SFLY's metrics for cash flow and return on equity are worse than its industry group average. Shutterfly's fundamental scores give SFLY a place in the top half of the industry group.
Portfolio Grader uses the Proprietary Quantitative Score to gauge SFLY's shares from the viewpoint of risk/reward. This proprietary scoring methodology balances the relative value of SFLY's shares based on the recent $68.15 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 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.
