VALUATION WARNING: Overvalued stocks now make up 66.31% of our stocks assigned a valuation and 30.65% of those equities are calculated to be overvalued by 20% or more. Fifteen 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 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. They are presented by one-month forecast return.Redwood Trust (RWT) is our top-rated upgrade this week and it is a STRONG BUY. PFSI, AL, and LCG are also STRONG BUY stocks. EQM is BUY-rated.
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Ticker
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Company Name
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Market Price
|
Valuation
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Last 12-M Return
|
1-M Forecast Return
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1-Yr Forecast Return
|
P/E Ratio
|
Sector Name
|
|
RWT
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REDWOOD TRUST
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15.61
|
-14.46%
|
49.52%
|
1.15%
|
13.88%
|
9.02
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Finance
|
|
PFSI
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PENNYMAC FIN SV
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16.25
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-2.57%
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38.30%
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1.09%
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13.08%
|
6.00
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Finance
|
|
AL
|
AIR LEASE CORP
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35.2
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3.04%
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44.74%
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1.09%
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13.08%
|
8.96
|
Transportation
|
|
KCG
|
KCG HOLDINGS
|
14
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-28.25%
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31.95%
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1.03%
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12.31%
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4.58
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Finance
|
|
EQM
|
EQT MIDSTRM PTR
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76.42
|
-6.18%
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29.42%
|
0.61%
|
7.35%
|
14.50
|
Oils-Energy
|
Below is today’s data on Redwood Trust (RWT):
REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans.
VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for REDWOOD TRUST on 2017-01-20. Based on the information we have gathered and our resulting research, we feel that REDWOOD TRUST has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Momentum.
You can download a free copy of detailed report on Redwood Trust (RWT) from the link below.
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ValuEngine Forecast
|
||
|
Target
Price* |
Expected
Return |
|
|---|---|---|
|
1-Month
|
5.56 | 1.12% |
|
3-Month
|
5.59 | 1.57% |
|
6-Month
|
5.64 | 2.50% |
|
1-Year
|
6.24 | 13.51% |
|
2-Year
|
5.54 | 0.81% |
|
3-Year
|
5.16 | -6.26% |
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Valuation & Rankings
|
|||
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Valuation
|
0.19% overvalued
|
Valuation Rank(?)
|
 67 |
|
1-M Forecast Return
|
1.12%
|
1-M Forecast Return Rank
|
99 |
|
12-M Return
|
28.81%
|
Momentum Rank(?)
|
69 |
|
Sharpe Ratio
|
0.17
|
Sharpe Ratio Rank(?)
|
62 |
|
5-Y Avg Annual Return
|
9.70%
|
5-Y Avg Annual Rtn Rank
|
72 |
|
Volatility
|
56.80%
|
Volatility Rank(?)
|
30 |
|
Expected EPS Growth
|
13.89%
|
EPS Growth Rank(?)
|
47 |
|
Market Cap (billions)
|
0.15
|
Size Rank
|
40 |
|
Trailing P/E Ratio
|
7.64
|
Trailing P/E Rank(?)
|
97 |
|
Forward P/E Ratio
|
6.71
|
Forward P/E Ratio Rank
|
95 |
|
PEG Ratio
|
0.55
|
PEG Ratio Rank
|
58 |
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Price/Sales
|
0.36
|
Price/Sales Rank(?)
|
89 |
|
Market/Book
|
0.49
|
Market/Book Rank(?)
|
92 |
|
Beta
|
2.64
|
Beta Rank
|
6 |
|
Alpha
|
-0.08
|
Alpha Rank
|
31 |
DOWNLOAD A FREE SAMPLE OF OUR REDWOOD TRUST (RWT) REPORT BY CLICKING HERE
ValuEngine Market Overview
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Summary of VE Stock Universe
|
|
|
Stocks Undervalued
|
33.69%
|
|
Stocks Overvalued
|
66.31%
|
|
Stocks Undervalued by 20%
|
14.4%
|
|
Stocks Overvalued by 20%
|
30.65%
|
ValuEngine Sector Overview
|
Sector
|
Change
|
MTD
|
YTD
|
Valuation
|
Last 12-MReturn
|
P/E Ratio
|
|
0.03%
|
1.83%
|
1.83%
|
19.22% overvalued
|
29.03%
|
20.13
|
|
|
-0.14%
|
1.52%
|
1.52%
|
19.19% overvalued
|
38.68%
|
24.74
|
|
|
0.23%
|
2.79%
|
2.79%
|
18.33% overvalued
|
65.49%
|
27.41
|
|
|
0.72%
|
2.99%
|
2.99%
|
15.83% overvalued
|
24.48%
|
21.00
|
|
|
-0.19%
|
0.47%
|
0.47%
|
15.25% overvalued
|
27.06%
|
17.89
|
|
|
0.48%
|
5.64%
|
5.62%
|
15.05% overvalued
|
95.35%
|
29.01
|
|
|
0.45%
|
4.01%
|
4.01%
|
14.83% overvalued
|
37.27%
|
18.65
|
|
|
0.04%
|
0.57%
|
0.57%
|
12.23% overvalued
|
20.89%
|
24.34
|
|
|
0.31%
|
1.64%
|
1.64%
|
11.40% overvalued
|
30.12%
|
22.01
|
|
|
-0.19%
|
0.44%
|
0.44%
|
10.93% overvalued
|
41.22%
|
20.48
|
|
|
-0.06%
|
2.41%
|
3.00%
|
10.77% overvalued
|
28.37%
|
30.74
|
|
|
-0.59%
|
0.74%
|
0.74%
|
7.57% overvalued
|
41.48%
|
14.70
|
|
|
-0.14%
|
1.28%
|
1.28%
|
6.58% overvalued
|
17.91%
|
23.86
|
|
|
-0.09%
|
0.59%
|
0.59%
|
5.08% overvalued
|
28.32%
|
23.83
|
|
|
-0.86%
|
-0.91%
|
-0.91%
|
0.23% overvalued
|
13.09%
|
22.89
|
|
|
-0.93%
|
3.85%
|
3.85%
|
4.89% undervalued
|
6.78%
|
27.45
|