For today’s bulletin, we present key metrics for the top picks in the Dow Jones Industrials.
VALUATION WARNING: Overvalued stocks now make up 69.77% of our stocks assigned a valuation and 34.68% of those equities are calculated to be overvalued by 20% or more. Sixteen sectors are calculated to be overvalued.
ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities. When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient–an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.
We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.
We can use our data to track individual stocks, industries, sectors, and indices. For today’s bulletin, we present key metrics for the top picks in the Dow Jones Industrials. The companies listed below represent the top stocks within the index. They are presented below according to their one-month forecast gain.
Since we last presented the top Dow picks in January, we see little change. Our turnover is only ten percent. We see Merck this month in ninth spot and it has replaced Verizon in our top-ten list.
We do see some change however, with American Express taking over the top spot from JPMorgan Chase. American Express moved up from fourth position to first while JPMorgan Chase fell from first to third. Other declining stocks include IBM and United Health.
The only other stock–besides our leader–to improve its position this month was Intel Corp.
Companies that held their positions this month are Goldman Sachs, Apple, Cisco Systems, and Traveler’s.
We have no STRONG BUY-rated stocks in the DOW right now. Our entire top-ten list consists of BUY-rated equities with the exception of MRK and TRV.
|
Ticker
|
Company Name
|
Market Price
|
Valuation
|
Last 12-M Retrn
|
1-M Forecast Retn
|
1-Yr Forecast Retn
|
P/E Ratio
|
Sector Name
|
Jan. 12th, 2016
|
|
AXP
|
AMER EXPRESS CO
|
79.86
|
2.01%
|
43.56%
|
0.90%
|
10.81%
|
14.13
|
Finance
|
JPM
|
|
GS
|
GOLDMAN SACHS
|
251.73
|
28.20%
|
69.18%
|
0.89%
|
10.63%
|
14.69
|
Finance
|
GS
|
|
JPM
|
JPMORGAN CHASE
|
91.06
|
31.19%
|
55.47%
|
0.76%
|
9.05%
|
14.55
|
Finance
|
IBM
|
|
IBM
|
INTL BUS MACH
|
181.15
|
25.03%
|
35.42%
|
0.63%
|
7.56%
|
13.32
|
Computer and Technology
|
AXP
|
|
INTC
|
INTEL CORP
|
36.07
|
5.34%
|
22.90%
|
0.59%
|
7.12%
|
13.08
|
Computer and Technology
|
UNH
|
|
AAPL
|
APPLE INC
|
137.11
|
24.18%
|
41.53%
|
0.58%
|
6.92%
|
16.35
|
Computer and Technology
|
AAPL
|
|
CSCO
|
CISCO SYSTEMS
|
34.09
|
14.70%
|
28.01%
|
0.47%
|
5.69%
|
15.78
|
Computer and Technology
|
CSCO
|
|
UNH
|
UNITEDHEALTH GP
|
160.57
|
7.56%
|
32.41%
|
0.39%
|
4.66%
|
19.65
|
Medical
|
VZ
|
|
MRK
|
MERCK & CO INC
|
65.29
|
22.43%
|
28.60%
|
0.31%
|
3.72%
|
17.38
|
Medical
|
INTC
|
|
TRV
|
TRAVELERS COS
|
121.9
|
16.48%
|
11.48%
|
0.27%
|
3.30%
|
11.98
|
Finance
|
TRV
|
NOTE: New stocks are in BOLD, old stocks that have moved up the list are in GREEN, old stocks that have declined in position are in RED, and stocks which have retained their position are in CAPS.
Below is today’s data on American Express (AXP):
American Express Company (AXP) is primarily engaged in the business of providing travel related services, financial advisory services and international banking services throughout the world. American Express Travel Related Services Company, Inc. provides a variety of products and services, including, global network services, the American Express Card, the Optima Card and other consumer and corporate lending products, stored value products, and several others.
VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on American Express for 2017-02-22. Based on the information we have gathered and our resulting research, we feel that American Express has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.
You can download a free copy of detailed report on American Express (AXP) from the link below.
|
ValuEngine Forecast
|
||
|
Target
Price* |
Expected
Return |
|
|---|---|---|
|
1-Month
|
80.58 | 0.90% |
|
3-Month
|
80.49 | 0.79% |
|
6-Month
|
81.33 | 1.84% |
|
1-Year
|
88.49 | 10.81% |
|
2-Year
|
77.26 | -3.26% |
|
3-Year
|
73.55 | -7.90% |
|
Valuation & Rankings
|
|||
|
Valuation
|
2.01% overvalued
|
Valuation Rank(?)
|
 67 |
|
1-M Forecast Return
|
0.90%
|
1-M Forecast Return Rank
|
96 |
|
12-M Return
|
43.56%
|
Momentum Rank(?)
|
72 |
|
Sharpe Ratio
|
0.41
|
Sharpe Ratio Rank(?)
|
74 |
|
5-Y Avg Annual Return
|
8.42%
|
5-Y Avg Annual Rtn Rank
|
69 |
|
Volatility
|
20.57%
|
Volatility Rank(?)
|
70 |
|
Expected EPS Growth
|
1.53%
|
EPS Growth Rank(?)
|
23 |
|
Market Cap (billions)
|
81.70
|
Size Rank
|
99 |
|
Trailing P/E Ratio
|
14.13
|
Trailing P/E Rank(?)
|
82 |
|
Forward P/E Ratio
|
13.92
|
Forward P/E Ratio Rank
|
68 |
|
PEG Ratio
|
9.21
|
PEG Ratio Rank
|
4 |
|
Price/Sales
|
2.42
|
Price/Sales Rank(?)
|
43 |
|
Market/Book
|
38.90
|
Market/Book Rank(?)
|
4 |
|
Beta
|
1.24
|
Beta Rank
|
28 |
|
Alpha
|
0.16
|
Alpha Rank
|
71 |
DOWNLOAD A FREE SAMPLE OF OUR REPORT ON AMERICAN EXPRESS (AXP) BY CLICKING HERE