This week, we provide top-five ranked VE data for our Business Services Sector stocks, take a look at Red Hat $RHT, and provide a free download link for our stock report on the company.
VALUATION WATCH: Overvalued stocks now make up 39.01% of our stocks assigned a valuation and 15.03% 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 | Friday AM | Change | % Change | YTD |
| DJIA | 25959.33 | 25303.49 | -655.84 | -2.53% | 2.36% |
| NASDAQ | 7364.05 | 7212.46 | -151.59 | -2.06% | 4.48% |
| RUSSELL 2000 | 1549.01 | 1518.69 | -30.32 | -1.96% | -1.10% |
| S&P 500 | 2773.93 | 2726 | -47.93 | -1.73% | 1.96% |
ValuEngine Market Overview
| Summary of VE Stock Universe | |
| Stocks Undervalued | 60.99% |
| Stocks Overvalued | 39.01% |
| Stocks Undervalued by 20% | 26.73% |
| Stocks Overvalued by 20% | 15.03% |
ValuEngine Sector Overview
| Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio |
| Aerospace | 0.43% | 0.79% | -1.27% | 5.61% overvalued | 9.67% | 23.84 |
| Utilities | 0.46% | 0.95% | 2.72% | 5.46% overvalued | -2.45% | 20.00 |
| Consumer Staples | 0.25% | 1.02% | -1.05% | 5.26% overvalued | 3.75% | 24.01 |
| Computer and Technology | 1.40% | 1.16% | 0.29% | 4.87% overvalued | 9.35% | 29.26 |
| Medical | 0.95% | -0.50% | 10.77% | 2.12% overvalued | 24.60% | 28.18 |
| Business Services | 0.63% | 0.11% | 3.96% | 1.58% overvalued | 6.53% | 21.76 |
| Retail-Wholesale | -0.47% | 1.23% | -3.32% | 1.53% overvalued | 16.54% | 22.75 |
| Finance | 0.35% | 0.66% | -4.38% | 4.06% undervalued | -1.75% | 16.15 |
| Consumer Discretionary | 0.02% | -0.29% | -6.13% | 4.26% undervalued | 8.32% | 23.46 |
| Industrial Products | 0.72% | 2.81% | -6.60% | 4.44% undervalued | 1.27% | 22.12 |
| Transportation | 0.60% | -0.26% | -5.34% | 4.44% undervalued | 2.43% | 17.87 |
| Multi-Sector Conglomerates | 0.50% | 0.94% | -11.76% | 4.87% undervalued | -7.94% | 16.90 |
| Auto-Tires-Trucks | -0.21% | 1.14% | -14.04% | 9.31% undervalued | -16.56% | 11.12 |
| Basic Materials | 0.46% | -1.04% | -8.60% | 11.31% undervalued | -11.69% | 18.54 |
| Construction | -1.58% | -0.33% | -10.95% | 16.90% undervalued | -10.60% | 18.59 |
| Oils-Energy | 0.52% | -3.45% | -4.54% | 25.91% undervalued | -1.64% | 19.45 |
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Sector Talk–Business Services
Below, we present the latest data on Business Services 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 Business Services Stocks–Short-Term Forecast Returns
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| JTPY | JETPAY CORP | 5.03 | 116.06% | 151.50% |
| RCM | R1 RCM INC | 8.79 | 119.79% | 133.78% |
| TISI | TEAM INC | 18.01 | 37.33% | 38.01% |
| ROL | ROLLINS INC | 60.89 | 42.48% | 35.52% |
| SPSC | SPS COMMERCE | 92.02 | 18.51% | 100.30% |
Top-Five Business Services Stocks–Momentum
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| JTPY | JETPAY CORP | 5.03 | 116.06% | 151.50% |
| RCM | R1 RCM INC | 8.79 | 119.79% | 133.78% |
| EVTC | EVERTEC INC | 28.32 | 47.29% | 117.85% |
| CATM | CARDTRONICS PLC | 33.93 | 17.76% | 108.67% |
| SPSC | SPS COMMERCE | 92.02 | 18.51% | 100.30% |
Top-Five Business Services Stocks–Composite Score
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| IPG | INTERPUBLIC GRP | 23.91 | 2.51% | 29.56% |
| FCN | FTI CONSULTING | 67.95 | -3.22% | 67.08% |
| MA | MASTERCARD INC | 200.71 | 8.45% | 35.31% |
| WEX | WEX INC | 161.43 | -7.96% | 34.78% |
| CPRT | COPART INC | 50.8 | -5.43% | 41.31% |
Top-Five Business Services Stocks–Most Overvalued
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| RCM | R1 RCM INC | 8.79 | 119.79% | 133.78% |
| JTPY | JETPAY CORP | 5.03 | 116.06% | 151.50% |
| EVTC | EVERTEC INC | 28.32 | 47.29% | 117.85% |
| ROL | ROLLINS INC | 60.89 | 42.48% | 35.52% |
| TRI | THOMSON REUTERS | 49 | 38.03% | 11.46% |
Free Download for Readers
As a bonus to our Free Weekly Newsletter subscribers,
we are offering a FREE DOWNLOAD of one of our Stock Reports
Red Hat (RHT) is the world’s leading provider of open source software solutions, using a community-powered approach to provide reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT.
VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on Red Hat for 2018-11-15. Based on the information we have gathered and our resulting research, we feel that Red Hat has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Sharpe Ratio and Company Size.
You can download a free copy of detailed report on Red Hat (RHT) from the link below.
Read our Complete Rating and Forecast Report HERE.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 175.68 | 1.07% |
| 3-Month | 178.75 | 2.83% |
| 6-Month | 184.31 | 6.04% |
| 1-Year | 196.13 | 12.84% |
| 2-Year | 204.22 | 17.49% |
| 3-Year | 204.67 | 17.75% |
| Valuation & Rankings | |||
| Valuation | 37.76% overvalued | Valuation Rank(?) | 8 |
| 1-M Forecast Return | 1.07% | 1-M Forecast Return Rank | 98 |
| 12-M Return | 40.38% | Momentum Rank(?) | 92 |
| Sharpe Ratio | 1.01 | Sharpe Ratio Rank(?) | 97 |
| 5-Y Avg Annual Return | 27.56% | 5-Y Avg Annual Rtn Rank | 96 |
| Volatility | 27.42% | Volatility Rank(?) | 54 |
| Expected EPS Growth | 14.06% | EPS Growth Rank(?) | 49 |
| Market Cap (billions) | 32.65 | Size Rank | 96 |
| Trailing P/E Ratio | 69.81 | Trailing P/E Rank(?) | 34 |
| Forward P/E Ratio | 61.20 | Forward P/E Ratio Rank | 5 |
| PEG Ratio | 4.97 | PEG Ratio Rank | 7 |
| Price/Sales | 10.34 | Price/Sales Rank(?) | 11 |
| Market/Book | 25.31 | Market/Book Rank(?) | 6 |
| Beta | 0.74 | Beta Rank | 52 |
| Alpha | 0.31 | Alpha Rank | 91 |
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Steve Hach
Senior Editor
ValuEngine.com