Facebook Inc (NASDAQ:FB) is ranked as a Strong Buy using Louis Navellier's Portfolio Grader stock evaluator, which incorporates his investing methodology. FB has maintained this ranking for the last month.
The company ranks in the top 10% of its industry group, Internet Software & Services, and in the top 10% of its sector group, Information Technology, with a market value of $520.2 billion.
The Information Technology sector is ranked number 3 among the 12 sectors in the Portfolio Grader universe putting it in the top half of all the GICS sectors. The Internet Software & Services industry group is ranked 11 among the 69 industry groups within the GICS sectors, placing it above-average in terms of the Navellier scoring system.
Facebook has earned above-average scores in 6 of the 8 fundamental areas appraised by Portfolio Grader 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 well above average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are significantly better than average, while the score for earnings momentum is worse than average. FB's ranking for return on equity is decidedly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Facebook places in the top decile of the industry group.
The Navellier Proprietary Quantitative Score is used by Portfolio Grader to gauge FB's shares from the angle of risk/reward. This exclusive scoring system takes into account 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 well 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.
