JPMorgan Chase Dethrones IBM As Dow Leader

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 on December 15th, nothing much has changed in terms of list components. We only have a 20% turnover this month as newcomers Intel and Apple replace Wal-Mart and Merck.

IBM could not retain its top spot and falls two spots to third as JPMorgan Chase is our new leader. Cisco Systems, Verizon, and prior, long-time leader Traveler’s also declined.

Moving up this month–in addition to the aforementioned JPM, are American Express and United Health

Currently we have no STRONG BUY-rated stocks in the DOW right now. Our entire top-ten list consists of BUY-rated equities.

Ticker
Company Name
Market Price
Valuation
Last 12-M Retrn
1-M Forecast Retn
1-Yr Forecast Retn
P/E Ratio
Sector Name
Dec. 15th, 2016
JPM
JPMORGAN CHASE
87.08
32.17%
48.02%
0.88%
10.52%
14.76
Finance
IBM
GS
GOLDMAN SACHS
245.76
35.70%
48.29%
0.85%
10.25%
15.35
Finance
GS
IBM
INTL BUS MACH
167.75
10.48%
25.91%
0.77%
9.25%
12.43
Computer and Technology
JPM
AXP
AMER EXPRESS CO
76.91
3.41%
20.08%
0.62%
7.40%
13.31
Finance
CSCO
UNH
UNITEDHEALTH GP
161.89
12.18%
47.74%
0.56%
6.75%
20.21
Medical
VZ
AAPL
APPLE INC
119.75
11.37%
21.54%
0.56%
6.68%
14.59
Computer and Technology
AXP
CSCO
CISCO SYSTEMS
30.15
5.78%
19.31%
0.53%
6.41%
14.09
Computer and Technology
UNH
VZ
VERIZON COMM
52.46
3.75%
16.35%
0.51%
6.12%
13.45
Utilities
WMT
INTC
INTEL CORP
36.95
8.48%
15.25%
0.47%
5.58%
13.79
Computer and Technology
TRV
TRV
TRAVELERS COS
117.65
13.07%
10.17%
0.44%
5.30%
12.07
Finance
MRK

NOTE: New stocks are in BOLD

Below is today’s data on Apple (AAPL):

Apple Inc. is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on APPLE INC for 2017-01-11. Based on the information we have gathered and our resulting research, we feel that APPLE INC 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
120.42 0.56%
3-Month
121.71 1.64%
6-Month
122.67 2.44%
1-Year
127.75 6.68%
2-Year
131.20 9.56%
3-Year
133.09 11.14%
Valuation & Rankings
Valuation
11.37% overvalued
Valuation Rank(?)
46
1-M Forecast Return
0.56%
1-M Forecast Return Rank
87
12-M Return
21.54%
Momentum Rank(?)
57
Sharpe Ratio
0.55
Sharpe Ratio Rank(?)
80
5-Y Avg Annual Return
13.88%
5-Y Avg Annual Rtn Rank
80
Volatility
25.47%
Volatility Rank(?)
61
Expected EPS Growth
9.74%
EPS Growth Rank(?)
38
Market Cap (billions)
697.51
Size Rank
100
Trailing P/E Ratio
14.59
Trailing P/E Rank(?)
81
Forward P/E Ratio
13.29
Forward P/E Ratio Rank
70
PEG Ratio
1.50
PEG Ratio Rank
33
Price/Sales
3.23
Price/Sales Rank(?)
33
Market/Book
5.83
Market/Book Rank(?)
23
Beta
1.26
Beta Rank
28
Alpha
-0.02
Alpha Rank
40

DOWNLOAD A FREE SAMPLE OF OUR REPORT ON APPLE (AAPL) BY CLICKING HERE


ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued
34.23%
Stocks Overvalued
65.77%
Stocks Undervalued by 20%
14.27%
Stocks Overvalued by 20%
30.95%

ValuEngine Sector Overview

Sector
Change
MTD
YTD
Valuation
Last 12-MReturn
P/E Ratio
0.23%
1.82%
1.82%
18.78% overvalued
23.11%
20.05
0.38%
1.75%
1.75%
18.65% overvalued
33.27%
24.83
1.03%
2.97%
2.97%
18.36% overvalued
46.18%
26.79
0.12%
1.31%
1.31%
16.00% overvalued
21.16%
18.14
-0.07%
1.91%
1.91%
14.28% overvalued
13.50%
20.76
0.94%
5.45%
5.43%
14.14% overvalued
80.95%
28.72
0.19%
0.93%
0.93%
12.30% overvalued
14.81%
24.42
0.64%
2.93%
2.93%
11.94% overvalued
28.57%
18.47
0.35%
1.33%
1.33%
11.04% overvalued
33.01%
21.55
0.26%
1.75%
1.75%
10.52% overvalued
23.11%
21.94
0.26%
2.50%
3.08%
9.77% overvalued
21.36%
31.29
-0.00%
2.15%
2.15%
8.62% overvalued
34.87%
14.92
-0.20%
1.33%
1.33%
4.90% overvalued
25.25%
23.92
0.18%
0.73%
0.73%
4.15% overvalued
13.18%
24.03
-0.34%
-0.13%
-0.13%
0.92% overvalued
10.17%
23.16
-0.49%
4.52%
4.52%
4.62% undervalued
2.12%
28.33
ValuEngine.com 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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