The current recommendation of Buy for Facebook Inc (NASDAQ:FB) is derived using Louis Navellier's Portfolio Grader stock evaluator, which incorporates his investing methodology. The current Portfolio Grader recommendation on the shares has been in place for the last month.
FB is a $504.4 billion in market value constituent of the Internet Software & Services GICS industry group where the stock's Portfolio Grader ranking places it 32 among the 133 companies in this industry group, placing it among the leaders. FB is ranked in the top quartile of the sector with a ranking of 154 among the 704 companies in the sector of its Information Technology sector and 788 in the Portfolio Grader company universe.
Currently, Portfolio Grader ranks the Information Technology sector number 6 among the 12 sectors in its universe putting it in the third quartile of all the GICS sectors. The Internet Software & Services industry group is ranked 25 among the 69 industry groups within the GICS sectors, placing it near the average in terms of the Navellier scoring system.
FB has earned above-average scores in 6 of the 8 fundamental areas analyzed by Portfolio Grader and average or below-average grades in 2 of the areas used in the ranking of company stocks.
FB's operational scores are a source of strength with a ranking for sales growth, operating margin and earnings growth that are well above 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 worse than average. FB's score for return on equity is decidedly better than its industry group average but its grade for cash flow is below-average. These fundamental scores give Facebook a position in the top decile of the industry group.
The Navellier Proprietary Quantitative Score is used by Portfolio Grader to measure FB's shares from the perspective of risk/reward. This exclusive scoring methodology balances the relative value of the company'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, FB currently scores above-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.
