Priceline Group Inc (NASDAQ:PCLN) Hold recommendation, which was recently up graded from a Sell to Hold, derives some benefit of being in a sector that is ranked above average in investment attractiveness; however, its industry group is ranked below average in attractiveness which may equalize this to a degree. Factors in this recommendation include a quantitative risk/reward calculation that is average, analytical scoring that is near average, and a ranking in the company's industry group that is in the middle third-below average, and a ranking in its sector group that is in the middle third. The a Hold rating for PCLN is based on the Portfolio Grader stock evaluator. The approach to investing incorporated in this analytical tool assesses and ranks nearly 5,000 stocks each week from a fundamental and quantitative perspective. PCLN has been upgraded from a Sell to a Hold in the last week.
The company is a member of the 56 company Other Consumer Services GICS industry group, which is a segment of the 255 company GICS Consumer Services sector. The market value of PCLN is $86.0 billion which places it in the top 10% of its industry group The current Portfolio Grader ranking for PCLN puts it 33 among the 56 companies in this industry group, which is a below-average position.
Portfolio Grader currently ranks the Consumer Services sector number 7 among the 20 sectors in its universe putting it in the second quartile of all the GICS sectors. The Other Consumer Services industry group is ranked 73 among the 129 industry groups within the GICS sectors, placing it below-average in terms of the Proprietary Quantitative Score scoring system.
Priceline Group has realized above-average scores in 5 of the 8 fundamental areas appraised by Portfolio Grader and average or below-average scores in 3 of the areas evaluated in the ranking of company stocks.
The company's operational scores are a source of strength with a ranking for sales growth, operating margin and earnings growth that are discernibly above 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. PCLN's metrics for return on equity and cash flow are appreciably better than its industry group average. These fundamental scores give Priceline Group a position in the top quartile of the industry group.
Portfolio Grader quantitatively gauges PCLN's shares using the Proprietary Quantitative Score. This metric looks at PCLN's shares from the angle of risk/reward. This unique scoring methodology considers the relative value of PCLN's shares based on the recent $1762.52 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.