This week, we provide top-five ranked VE data for our Consumer Staples Sector stocks. We also check our valuations in light of the ongoing market turmoil.
NYSE:GCI
NYSE:NUS
NASDAQ:SAFM
NYSE:MED
NYSE:HI
VALUATION WATCH: Overvalued stocks now make up 51.53% of our stocks assigned a valuation and 17.32% of those equities are calculated to be overvalued by 20% or more. Eleven sectors are calculated to be overvalued.
ValuEngine Index Overview
| Index | Week Open | Friday AM | Change | % Change | YTD |
| DJIA | 24076.6 | 23874.51 | -202.09 | -0.84% | -3.42% |
| NASDAQ | 7016.17 | 6918.82 | -97.3499 | -1.39% | 0.22% |
| RUSSELL 2000 | 1529.14 | 1508.1 | -21.04 | -1.38% | -1.79% |
| S&P 500 | 2633.45 | 2600.94 | -32.51 | -1.23% | -2.72% |
ValuEngine Market Overview
| Summary of VE Stock Universe | |
| Stocks Undervalued | 51.53% |
| Stocks Overvalued | 48.47% |
| Stocks Undervalued by 20% | 19.96% |
| Stocks Overvalued by 20% | 17.32% |
ValuEngine Sector Overview
| Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio |
| Aerospace | 1.57% | 0.87% | 6.07% | 18.77% overvalued | 23.21% | 23.07 |
| Computer and Technology | 0.09% | -0.65% | 1.89% | 11.85% overvalued | 25.28% | 31.35 |
| Industrial Products | 0.98% | 0.24% | -0.77% | 5.07% overvalued | 19.01% | 23.45 |
| Consumer Discretionary | 0.71% | 0.99% | -1.50% | 4.83% overvalued | 17.34% | 27.34 |
| Multi-Sector Conglomerates | 0.72% | 0.45% | -3.85% | 4.08% overvalued | 11.47% | 24.19 |
| Business Services | 1.18% | 1.64% | 5.55% | 3.78% overvalued | 17.63% | 23.79 |
| Consumer Staples | 0.48% | 0.66% | -1.71% | 3.76% overvalued | 13.62% | 25.48 |
| Medical | 0.52% | 0.49% | 2.56% | 1.91% overvalued | 35.77% | 28.39 |
| Utilities | 0.43% | -0.00% | -3.86% | 1.47% overvalued | 2.04% | 22.40 |
| Transportation | 0.85% | 0.36% | -3.26% | 0.52% overvalued | 19.33% | 21.00 |
| Finance | 0.26% | 0.44% | -0.98% | 0.25% overvalued | 9.96% | 17.91 |
| Retail-Wholesale | 0.59% | 0.27% | -2.93% | 1.20% undervalued | 16.31% | 24.28 |
| Construction | 0.85% | 1.02% | 1.19% | 1.47% undervalued | 19.50% | 22.97 |
| Auto-Tires-Trucks | 1.33% | 2.33% | -3.90% | 3.36% undervalued | 19.61% | 13.82 |
| Basic Materials | 0.99% | 0.63% | -0.15% | 5.57% undervalued | -0.23% | 24.41 |
| Oils-Energy | 1.92% | 1.83% | -2.04% | 13.25% undervalued | -2.84% | 26.37 |
Want to learn more about ValuEngine? Our methods? Our history?
Check out our video presentation HERE
Valuations
The ongoing volatility on Wall Street has kept our valuation battle quite lively this week. We now see the undervalued condition holding sway, with 51.83% of the stocks we can assign a valuation calculated to be undervalued.
We thought some issues related to proposed tariffs and a China-US trade war had calmed down a bit and then we saw that positive market response earlier in the week. However, with some unable to “stick to the script” and reassure investors, the market reacted negatively today and–as of this writing–took a big dive.
Threatening tariffs as a bargaining strategy for non-existent–thus far– negotiations on trade remains an incredibly bad idea. This sort of thing can/will destabilize markets. Of even more concern is the fact that those doing the most damage on this front in Washington appear woefully ignorant of how international trade “works”– or even more basic issues (such as how trade deficits are actually calculated.)
Once again, we are reminded that the issue here is not the US economy–which has been on a tear for years now. The main issue–today’s weak jobs report notwithstanding– is the self-inflicted wounds caused by ill-thought out remarks from certain quarters in DC. We hope some self-control can be developed–and soon–in those same quarters so that this remarkable rally can continue.
Sector Talk–Consumer Staples
Below, we present the latest data on Consumer Staples stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category. We applied some basic liquidity criteria–share price greater than $3 and average daily volume in excess of 100k shares.
Top-Five Consumer Staples Stocks–Short-Term Forecast Returns
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| GCI | GANNETT CO INC | 9.26 | 36.53% | 13.48% |
| NUS | NU SKIN ENTERP | 75.05 | 38.58% | 38.75% |
| SAFM | SANDERSON FARMS | 113.53 | 14.52% | 9.51% |
| MED | MEDIFAST INC | 96.69 | 73.13% | 121.87% |
| HI | HILLENBRAND INC | 46.2 | 24.68% | 31.06% |
Top-Five Consumer Staples Stocks–Momentum
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| MED | MEDIFAST INC | 96.69 | 73.13% | 121.87% |
| CHEF | CHEFS WAREHOUSE | 24.2 | 39.51% | 82.64% |
| OLLI | OLLIES BGN OUTL | 59.45 | N/A | 80.97% |
| EL | ESTEE LAUDER | 151.48 | 33.52% | 77.71% |
| BUFF | BLUE BUFFALO | 39.93 | 13.15% | 71.45% |
Top-Five Consumer Staples Stocks–Composite Score
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| TSN | TYSON FOODS A | 70.97 | -16.88% | 14.56% |
| STZ | CONSTELLATN BRD | 229.93 | 7.78% | 42.46% |
| PPC | PILGRIMS PRIDE | 23.48 | -16.44% | 4.26% |
| SAFM | SANDERSON FARMS | 113.53 | 14.52% | 9.51% |
| EL | ESTEE LAUDER | 151.48 | 33.52% | 77.71% |
Top-Five Consumer Staples Stocks–Most Overvalued
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| MED | MEDIFAST INC | 96.69 | 73.13% | 121.87% |
| FRPT | FRESHPET INC | 16.4 | 62.35% | 49.09% |
| CHEF | CHEFS WAREHOUSE | 24.2 | 39.51% | 82.64% |
| NUS | NU SKIN ENTERP | 75.05 | 38.58% | 38.75% |
| GCI | GANNETT CO INC | 9.26 | 36.53% | 13.48% |
ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
Contact ValuEngine at (800) 381-5576 or support@valuengine.com
Visit www.ValuEngine.com for more information
ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine’s award-winning stock research.
Contact ValuEngine Capital at info@valuenginecapital.com
Visit www.ValuEngineCapital.com for more information
