Quant Score Make BT Group (BT) a Sell

BT Group Plc (NYSE:BT) is ranked as a Sell using the Portfolio Grader stock evaluator, which incorporates Louis Navellier’s investing methodology. The current Portfolio Grader recommendation on the shares has been in place for 4 months.

The company is classified as a member of the 45 company Diversified Telecommunication Services GICS industry group, which is a segment of the 66 company GICS Telecommunication Services sector. The market value of BT is $32.7 billion which places it in the top quarter of its industry group The stock’s current Portfolio Grader ranking places it 39 among the 45 companies in this industry group, a spot that is well below-average.

The Telecommunication Services sector is ranked number 4 among the 12 sectors in the Portfolio Grader universe putting it in the top half of all the GICS sectors. The Diversified Telecommunication Services industry group is ranked 39 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.

The company has achieved average or below-average scores in 7 of the 8 areas evaluated by Portfolio Grader in the ranking of company stocks.

The company’s operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are considerably below average. Scores for visibility of earnings are worse than the industry norms for earnings revisions, earnings surprises, and earnings momentum. BT’s score for return on equity is strikingly better than its industry group average but its grade for cash flow is below-average. These fundamental scores give BT Group a position in the third quartile of the industry group.

The Navellier Proprietary Quantitative Score is used by Portfolio Grader to measure BT’s shares from the viewpoint of risk/reward. This unique scoring approach weighs 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, BT currently scores below-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.

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