BGC Partners, Inc. (NasdaqGS:BGCP) With Expected Sales Growth of 17.177% is a 0.012 Target Weight Reasonable?

Potential Investors often look for key drivers that can move a stock in a positive direction.  One of those is sales growth.  BGC Partners, Inc. (NasdaqGS:BGCP) of the Other sector, witnessed sales growth of  17.177% year over year. The firm has a traded value of 20915 and has its headquarters in United States of America.

Investors may be searching for various types of stocks to help diversify the portfolio. Growth stocks include shares of companies that may have the possibility of generating higher than average profit growth and revenues. These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Although growth stocks can be a bit riskier, they can also provide a higher level of reward down the line. Cyclical stocks consist of companies that typically will ride the wave of the overall economy. These shares tend to perform well when the economy is doing well and perform poorer when the economy is faltering.

So how has BGC Partners, Inc. (NasdaqGS:BGCP) performed in terms of returns?  The ROIC quality score stands at -3.234654 whilet he actual return on invested capital holds at  0.121022.  BGC Partners, Inc.’s book to market ratio is at 0.476547 while the book to market mean difference is 0.1069. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued.

In glancing at some key ratios we note that the Piotroski F-Score is at 3 (1 to 10 scale) and the ERP5 rank is at 10456. The Q.I. Value of BGC Partners, Inc. (NasdaqGS:BGCP) currently reads 80 on the Quant scale. The Free Cash Flow score of -0.888571 is also swinging some momentum at investors. The United States of America based firm is currently valued at 20915.

Some other notable ratios include the Accrual Ratio of 0.130113, the Altman Z score of 0.969551, a Montier C-Score of 4 and a Value Composite rank of 65.

Debt

In looking at some Debt ratios, BGC Partners, Inc. (NasdaqGS:BGCP) currently has a debt to equity ratio of 2.54939 and a Free Cash Flow to Debt ratio of -0.121962. This ratio gives insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at -0.00094. This ratio reveals how easily a firm is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. BGC Partners, Inc.’s ND to MV current stands at 0.939539. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

BGC Partners, Inc. (NasdaqGS:BGCP) are showing an adjusted slope average of the past 125 and 250 days of -9.89677.  The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2).  The purpose of this calculation is to provide a longer term average adjusted slope value that levels out large share price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.150876 for BGC Partners, Inc. (NasdaqGS:BGCP).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

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