Owens-Illinois Remains At Number One On ValuEngine SP500 Top-Stock List

For today’s bulletin, we present key metrics for the top picks in the S&P 500. Check out our latest SP500 top-ten stock list.

VALUATION WARNING: Overvalued stocks now make up 68.25% of our stocks assigned a valuation and 30.86% of those equities are calculated to be overvalued by 20% or more. All sectors are calculated to be overvalued.

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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 S&P 500. The companies listed below represent the top-ten BUY/STRONG BUY stocks within the index. They are presented below according to their one-month forecast target prices.

This week, we saw a 30% turnover for our list since the last time we looked at the SP500 in February. Our newcomers are NRG Energy (NRG), General Motors (GM), and Western Digital (WDC). Those companies replaced Hewlett Packard Enterprise (HPE), Principal Financial Group (PFG), and BorgWarner (BWA).

Owens Illinois (OI), our new leader the last time we ran the SP500 top-ten list, retains its position at number one.

We had four declining stocks this time around. Lincoln National (LNC), Navient Corp. (NAVI), Hewlett Packard (HPQ), and Unum Group (UNM) all fell down a few spots.

Moving up are Discover Financial (DFS) and Morgan Stanley (MS).

Once again, we have a top-ten list that is dominated by Finance Sector firms. All of the names on this list are rated STRONG BUY.

Ticker Company Name Market Price Valuation Last 12-M Retrn 1-M Forecast Retn 1-Yr Forecast Retn P/E Ratio Sector Name Feb. 2, 2017
OI OWENS-ILLINOIS 20.09 -5.79% 39.81% 1.34% 16.13% 8.57 Industrial Products OI
NRG NRG ENERGY INC 17.46 -19.64% 31.28% 1.33% 16.00% 7.78 Utilities LNC
LNC LINCOLN NATL-IN 68.97 9.49% 72.68% 1.30% 15.69% 10.34 Finance NAVI
DFS DISCOVER FIN SV 70.63 7.31% 45.00% 1.10% 13.23% 12.12 Finance HPQ
MS MORGAN STANLEY 45.85 9.24% 80.30% 1.09% 13.13% 14.59 Finance UNM
NAVI NAVIENT CORP 14.66 8.13% 27.04% 1.09% 13.07% 7.95 Finance DFS
GM GENERAL MOTORS 37.09 4.14% 19.45% 1.04% 12.46% 5.91 Auto-Tires-Trucks PFG
HPQ HP INC 17.57 24.77% 54.12% 1.04% 12.43% 10.82 Computer and Technology BWA
WDC WESTERN DIGITAL 76.72 16.41% 68.21% 1.02% 12.24% 13.83 Computer and Technology MS
UNM UNUM GROUP 48.17 21.76% 52.78% 1.00% 12.01% 12.15 Finance HPE

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 NRG Energy (NRG):

NRG Energy Inc owns and operates a diverse portfolio of power-generating facilities, primarily in the United States. Its operations include baseload, intermediate, peaking, and cogeneration facilities, thermal energy production and energy resource recovery facilities.

We have seen a lot of energy firms dominating our top stock lists over the past few months as the sector has undergone a strong recovery as crude prices have bounced back and investors have jumped back into the shares. But, often the firms we see are in counter intuitive industries–such as coal.

With NRG Energy, we have smoothening different. The utility company owns Green Mountain Energy, one of the largest “green” energy firms in the US. Green Mountain is a big player in the wind energy business.

However, NRG also makes a lot of energy from the more traditional fossil fuels as well. But, that doesn’t change the fact that they can produce more energy from wind than most utilities and they can more fully integrate the renewable sources with their traditional fossil fuel plants. They also derive a benefit from the carbon-reducing output provided by the wind power.

The company posted a nice beat the last time earnings were reported at the end of February–$0.90/share vs estimates for a loss of $0.10 with an increase of 60% over Q4 2015. However, revenues were down 9% for the quarter and 15.8% year-over-year..

ValuEngine continues its STRONG BUY recommendation on NRG Energy for 2017-03-15. Based on the information we have gathered and our resulting research, we feel that NRG Energy has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Price Sales Ratio.

You can download a free copy of detailed report on NRG Energy (NRG) from the link below.

ValuEngine Forecast
1-Month 17.69 1.33%
3-Month 17.52 0.35%
6-Month 17.57 0.61%
1-Year 20.25 16.00%
2-Year 15.88 -9.07%
3-Year 14.12 -19.11%


Valuation & Rankings
Valuation 19.64% undervalued Valuation Rank(?) 87
1-M Forecast Return 1.33% 1-M Forecast Return Rank 100
12-M Return 31.28% Momentum Rank(?) 70
Sharpe Ratio -0.02 Sharpe Ratio Rank(?) 45
5-Y Avg Annual Return -0.64% 5-Y Avg Annual Rtn Rank 44
Volatility 33.49% Volatility Rank(?) 49
Expected EPS Growth -59.73% EPS Growth Rank(?) 4
Market Cap (billions) 5.90 Size Rank 84
Trailing P/E Ratio 7.78 Trailing P/E Rank(?) 97
Forward P/E Ratio 19.33 Forward P/E Ratio Rank 39
PEG Ratio n/a PEG Ratio Rank n/a
Price/Sales 0.48 Price/Sales Rank(?) 85
Market/Book 3.38 Market/Book Rank(?) 37
Beta 1.25 Beta Rank 27
Alpha 0.18 Alpha Rank 75




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