Portfolio Grader currently ranks Lending Club Corp (NYSE:LC) a Sell. The methodology for investing incorporated in this analytical tool researches 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 3 months. The Sell recommendation for Lending Club Corp is the conclusion of a proprietary process of evaluation which yielded results that were above average in 1 area: an industry group ranked above average in attractiveness; and produced below average outcomes in 5 areas: an economic sector ranked below average in attractiveness, a ranking in the company's sector that is in the bottom eighth, ranking in the company's industry group that is in the bottom eighth, an analytical score that is below average, and a quantitative risk/reward calculation that is unattractive.
LC is a member of the 63 company Finance/Rental/Leasing GICS industry group, which is a segment of the 988 company GICS Finance sector. LC has a market value of $1.5 billion which is in the upper half of its industry group The stock's current Portfolio Grader ranking places it 61 among the 63 companies in this industry group, a spot that is well below-average.
The Finance sector is ranked number 12 among the 20 sectors in the Portfolio Grader universe putting it in the third quartile of all the GICS sectors. The Finance/Rental/Leasing industry group is ranked 51 among the 129 industry groups within the GICS sectors, placing it near the average in terms of the Proprietary Quantitative Score scoring system.
LC has attained average or below-average scores in 6 of the 8 areas analyzed by Portfolio Grader in the ranking of company stocks.
LC's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are mixed, with rankings for earnings momentum and earnings surprises that are better than average, while the score for earnings revisions is much worse than average. LC's grades for cash flow and return on equity are worse than its industry group average. These fundamental scores give Lending Club a position in the third quartile of the industry group.
The Proprietary Quantitative Score is used by Portfolio Grader to measure LC's shares from the perspective of risk/reward. This unique scoring approach balances the relative value of the company's shares based on the recent $3.7 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, LC 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.