January 3, 2017

VALUATION WARNING: Overvalued stocks now make up 65.45% of our stocks assigned a valuation and 32.41% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued.

Get Educated In The New Year

–ValuEngine Top STRONG BUY Upgrade Is CECO

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 combine all of the equities with a valuation calculation to track market valuation figures and use them as a metric for making calls about the overall state of the market.  Two factors can lower these figures– a market pullback, or a significant rise in EPS estimates.

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.

For today’s edition of our upgrade list, we used our website’s advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. Career Education Corporation (CECO) is our top-rated upgrade this week and it is a STRONG BUY.

Below is today’s data on Career Education Corporation (CECO):

Career Education Corporation is a provider of private, for-profit post-secondary education with campuses throughout the United States and Canada, the United Kingdom and the United Arab Emirates. Their schools enjoy long operating histories and offer a variety of master’s degree, bachelor’s degree, associate degree, and diploma programs in career-oriented disciplines. They offer educational programs principally in the following four career-related fields of study, Visual Communication and Design Technologies, Information Technology, Business Studies, and Culinary Arts.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for CAREER EDU CORP on 2016-12-30. Based on the information we have gathered and our resulting research, we feel that CAREER EDU CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Momentum and P/E Ratio.

You can download a free copy of detailed report on Career Education Corporation (CECO) from the link below.

ValuEngine Forecast
1-Month 10.22 1.27%
3-Month 10.59 4.93%
6-Month 11.05 9.55%
1-Year 11.64 15.31%
2-Year 13.11 29.91%
3-Year 14.58 44.46%
Valuation & Rankings
Valuation 72.52% overvalued Valuation Rank(?) 4
1-M Forecast Return 1.27% 1-M Forecast Return Rank 100
12-M Return 169.79% Momentum Rank(?) 97
Sharpe Ratio 0.10 Sharpe Ratio Rank(?) 59
5-Y Avg Annual Return 6.94% 5-Y Avg Annual Rtn Rank 67
Volatility 69.58% Volatility Rank(?) 24
Expected EPS Growth -79.15% EPS Growth Rank(?) 4
Market Cap (billions) 0.68 Size Rank 58
Trailing P/E Ratio 11.69 Trailing P/E Rank(?) 88
Forward P/E Ratio 56.06 Forward P/E Ratio Rank 6
PEG Ratio n/a PEG Ratio Rank n/a
Price/Sales 0.77 Price/Sales Rank(?) 75
Market/Book 2.62 Market/Book Rank(?) 43
Beta 2.12 Beta Rank 10
Alpha 0.74 Alpha Rank 96


ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued 34.55%
Stocks Overvalued 65.45%
Stocks Undervalued by 20% 15.36%
Stocks Overvalued by 20% 32.41%

ValuEngine Sector Overview

Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Oils-Energy 0.00% 0.00% 0.00% 19.24% overvalued 24.80% 26.14
Multi-Sector Conglomerates 0.00% 0.00% 0.00% 17.48% overvalued 14.63% 19.81
Industrial Products 0.00% 0.00% 0.00% 17.31% overvalued 22.80% 24.43
Finance 0.00% 0.00% 0.00% 16.16% overvalued 15.08% 18.15
Aerospace 0.00% 0.00% 0.00% 13.89% overvalued 11.31% 20.25
Business Services 0.00% 0.00% 0.00% 11.15% overvalued 9.16% 24.67
Utilities 0.00% 0.00% 0.00% 10.83% overvalued 18.75% 21.69
Construction 0.00% 0.00% 0.00% 10.55% overvalued 22.60% 21.27
Basic Materials 0.00% 0.01% -0.01% 9.31% overvalued 65.68% 26.50
Transportation 0.00% 0.00% 0.00% 9.23% overvalued 8.15% 18.04
Computer and Technology -0.01% -0.00% 0.58% 7.62% overvalued 12.89% 30.71
Auto-Tires-Trucks 0.00% 0.00% 0.00% 6.64% overvalued 21.92% 14.86
Consumer Staples 0.00% 0.00% 0.00% 5.90% overvalued 10.31% 24.73
Consumer Discretionary 0.00% 0.00% 0.00% 4.26% overvalued 19.26% 24.14
Retail-Wholesale 0.00% 0.00% 0.00% 3.91% overvalued 7.10% 22.96
Medical 0.00% 0.00% 0.00% 8.20% undervalued -10.10% 28.21 is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day.
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