This week, we provide top-five ranked VE data for our Basic Materials Sector stocks, take a look at Microsoft $MSFT, and provide a free download link for our stock report on the company.
VALUATION WATCH: Overvalued stocks now make up 39.63% of our stocks assigned a valuation and 15.34% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued.
ValuEngine Index Overview
| Index | Week Open | Thursday PM | Change | % Change | YTD |
| DJIA | 24364.13 | 25414.05 | 1049.92 | 4.31% | 2.81% |
| NASDAQ | 7026.5 | 7297.79 | 271.29 | 3.86% | 5.71% |
| RUSSELL 2000 | 1489.1 | 1532.31 | 43.21 | 2.90% | -0.21% |
| S&P 500 | 2649.97 | 2746.67 | 96.7 | 3.65% | 2.73% |
ValuEngine Market Overview
| Summary of VE Stock Universe | |
| Stocks Undervalued | 60.37% |
| Stocks Overvalued | 39.63% |
| Stocks Undervalued by 20% | 27.38% |
| Stocks Overvalued by 20% | 15.34% |
ValuEngine Sector Overview
| Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio |
| Utilities | 1.52% | 2.86% | 5.27% | 6.62% overvalued | -2.83% | 20.24 |
| Computer and Technology | 1.84% | 1.25% | 0.45% | 5.37% overvalued | 5.29% | 29.26 |
| Consumer Staples | 0.78% | 0.18% | -1.90% | 4.25% overvalued | -0.35% | 23.92 |
| Aerospace | 1.73% | -0.92% | -3.12% | 3.18% overvalued | 4.20% | 23.21 |
| Medical | 1.94% | -0.13% | 11.62% | 2.57% overvalued | 20.85% | 28.10 |
| Business Services | 1.95% | -0.46% | 3.32% | 2.05% overvalued | 2.51% | 21.41 |
| Retail-Wholesale | 1.48% | 1.67% | -2.47% | 0.66% overvalued | 9.48% | 22.69 |
| Finance | 1.08% | 0.89% | -4.20% | 3.47% undervalued | -3.52% | 16.12 |
| Transportation | 1.42% | -0.40% | -5.55% | 3.62% undervalued | 1.52% | 18.47 |
| Consumer Discretionary | 1.32% | -0.26% | -6.42% | 3.99% undervalued | 4.61% | 23.87 |
| Industrial Products | 1.74% | 1.86% | -7.61% | 5.26% undervalued | -3.31% | 21.92 |
| Multi-Sector Conglomerates | 0.88% | 0.57% | -11.32% | 5.78% undervalued | -10.03% | 16.76 |
| Auto-Tires-Trucks | 0.91% | 0.49% | -15.04% | 9.25% undervalued | -17.79% | 11.10 |
| Basic Materials | 1.27% | -2.70% | -9.98% | 12.97% undervalued | -15.71% | 17.92 |
| Construction | 0.92% | 0.03% | -10.65% | 15.68% undervalued | -13.69% | 18.45 |
| Oils-Energy | 0.81% | -6.43% | -6.86% | 27.64% undervalued | -5.80% | 18.87 |
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Sector Talk–Basic Materials
Below, we present the latest data on Basic Materials stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category. We applied some basic liquidity criteria–share price greater than $3 and average daily volume in excess of 100k shares.
Top-Five Basic Materials Stocks–Short-Term Forecast Returns
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| SSRM | SSR MINING INC | 10.46 | 23.13% | 22.91% |
| NSU | NEVSUN RESOURCS | 4.48 | 57.78% | N/A |
| ECL | ECOLAB INC | 153.95 | 17.95% | 15.92% |
| ICL | ISRAEL CHEM LTD | 6.04 | 46.02% | 50.25% |
| CF | CF INDUS HLDGS | 43.19 | 10.40% | 20.24% |
Top-Five Basic Materials Stocks–Momentum
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| ICL | ISRAEL CHEM LTD | 6.04 | 46.02% | 50.25% |
| MOS | MOSAIC CO/THE | 35.06 | 15.84% | 49.32% |
| CLF | CLEVELAND-CLIFF | 8.88 | -35.23% | 39.18% |
| SSRM | SSR MINING INC | 10.46 | 23.13% | 22.91% |
| CF | CF INDUS HLDGS | 43.19 | 10.40% | 20.24% |
Top-Five Basic Materials Stocks–Composite Score
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| VALE | VALE SA | 12.89 | 8.49% | 18.15% |
| FBR | FIBRIA CELULOSE | 18.19 | 6.70% | 17.73% |
| MOS | MOSAIC CO/THE | 35.06 | 15.84% | 49.32% |
| CLF | CLEVELAND-CLIFF | 8.88 | -35.23% | 39.18% |
| ICL | ISRAEL CHEM LTD | 6.04 | 46.02% | 50.25% |
Top-Five Basic Materials Stocks–Most Overvalued
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| NSU | NEVSUN RESOURCS | 4.48 | 57.78% | N/A |
| ICL | ISRAEL CHEM LTD | 6.04 | 46.02% | 50.25% |
| ABX | BARRICK GOLD CP | 12.75 | 29.28% | -10.53% |
| KRO | KRONOS WORLDWD | 12.54 | 26.95% | -56.73% |
| SSRM | SSR MINING INC | 10.46 | 23.13% | 22.91% |
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Microsoft (MSFT) is a technology company. Their products include operating systems for computing devices, servers, phones, and other intelligent devices; server applications for distributed computing environments; cross-device productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. They also design and sell hardware including PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. They offer cloud-based solutions that provide customers with software, services, platforms, and content. They also provide consulting and product and solution support services, and they train and certify computer system integrators and developers.
VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on MICROSOFT CORP for 2018-11-28. Based on the information we have gathered and our resulting research, we feel that MICROSOFT CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.
You can download a free copy of detailed report on Microsoft (MSFT) from the link below.
Read our Complete Rating and Forecast Report HERE.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 111.85 | 0.66% |
| 3-Month | 112.43 | 1.18% |
| 6-Month | 114.94 | 3.44% |
| 1-Year | 119.87 | 7.87% |
| 2-Year | 117.01 | 5.30% |
| 3-Year | 117.83 | 6.04% |
| Valuation & Rankings | |||
| Valuation | 6.81% overvalued | Valuation Rank(?) | 30 |
| 1-M Forecast Return | 0.66% | 1-M Forecast Return Rank | 90 |
| 12-M Return | 30.91% | Momentum Rank(?) | 91 |
| Sharpe Ratio | 1.10 | Sharpe Ratio Rank(?) | 98 |
| 5-Y Avg Annual Return | 22.08% | 5-Y Avg Annual Rtn Rank | 94 |
| Volatility | 20.03% | Volatility Rank(?) | 68 |
| Expected EPS Growth | 6.71% | EPS Growth Rank(?) | 35 |
| Market Cap (billions) | 911.60 | Size Rank | 100 |
| Trailing P/E Ratio | 26.31 | Trailing P/E Rank(?) | 45 |
| Forward P/E Ratio | 24.66 | Forward P/E Ratio Rank | 18 |
| PEG Ratio | 3.92 | PEG Ratio Rank | 10 |
| Price/Sales | 7.93 | Price/Sales Rank(?) | 13 |
| Market/Book | 25.46 | Market/Book Rank(?) | 6 |
| Beta | 1.23 | Beta Rank | 27 |
| Alpha | 0.19 | Alpha Rank | 86 |
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Steve Hach
Senior Editor
ValuEngine.com