This week, we provide top-five ranked VE data for our Construction Sector stocks. We take a look at our latest data on Caterpllar $CAT and provide a free download link for our stock report on the company.
VALUATION WATCH: Overvalued stocks now make up 55.53% of our stocks assigned a valuation and 22.33% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.
ValuEngine Index Overview
| Index | Week Open | Friday PM | Change | % Change | YTD |
| DJIA | 24879.37 | 24748.92 | -130.45 | -0.52% | 0.12% |
| NASDAQ | 7429.45 | 7379.64 | -49.81 | -0.67% | 6.90% |
| RUSSELL 2000 | 1607.39 | 1627.05 | 19.66 | 1.22% | 5.96% |
| S&P 500 | 2738.47 | 2718.64 | -19.83 | -0.72% | 1.68% |
ValuEngine Market Overview
| Summary of VE Stock Universe | |
| Stocks Undervalued | 44.47% |
| Stocks Overvalued | 55.53% |
| Stocks Undervalued by 20% | 16.19% |
| Stocks Overvalued by 20% | 22.33% |
ValuEngine Sector Overview
| Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio |
| Aerospace | -0.03% | -1.14% | 3.37% | 24.55% overvalued | 17.27% | 25.94 |
| Computer and Technology | 0.72% | 4.07% | 4.34% | 17.57% overvalued | 22.67% | 31.72 |
| Medical | 0.35% | 4.48% | 8.15% | 14.10% overvalued | 37.61% | 28.55 |
| Business Services | 0.30% | 2.09% | 4.33% | 8.61% overvalued | 16.68% | 25.02 |
| Consumer Discretionary | 0.65% | 2.54% | -0.26% | 7.73% overvalued | 18.31% | 26.84 |
| Retail-Wholesale | 1.19% | 1.82% | -1.24% | 6.98% overvalued | 14.87% | 24.16 |
| Multi-Sector Conglomerates | 0.43% | 0.35% | -3.56% | 5.30% overvalued | 9.39% | 23.95 |
| Consumer Staples | 0.61% | 0.86% | -3.32% | 4.42% overvalued | 10.51% | 25.89 |
| Finance | 0.26% | 1.49% | 0.67% | 3.41% overvalued | 9.44% | 17.98 |
| Industrial Products | 0.40% | 1.82% | -0.91% | 2.68% overvalued | 15.11% | 24.44 |
| Utilities | 0.02% | 0.51% | -5.29% | 1.59% overvalued | 0.17% | 21.43 |
| Transportation | 0.50% | 3.80% | -0.09% | 1.13% overvalued | 21.67% | 20.13 |
| Basic Materials | 0.82% | 3.29% | 4.63% | 0.65% undervalued | 5.84% | 22.72 |
| Construction | 0.59% | 0.82% | 0.84% | 2.94% undervalued | 18.20% | 22.49 |
| Auto-Tires-Trucks | 0.47% | 3.10% | -5.03% | 4.88% undervalued | 10.96% | 13.22 |
| Oils-Energy | 0.67% | 4.49% | 7.98% | 6.55% undervalued | 11.54% | 27.10 |
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Sector Talk–Construction
Below, we present the latest data on Construction 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 Construction Stocks–Short-Term Forecast Returns
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| USG | USG CORP | 41.59 | 35.90% | 44.96% |
| PGTI | PGT INC | 19.45 | 24.35% | 66.24% |
| TREX | TREX COMPANY | 114.29 | 18.92% | 80.21% |
| TPH | TRI POINTE GRP | 16.85 | 16.56% | 36.66% |
| LAYN | LAYNE CHRISTENS | 15.86 | 17.84% | 111.47% |
Top-Five Construction Stocks–Momentum
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| LAYN | LAYNE CHRISTENS | 15.86 | 17.84% | 111.47% |
| TREX | TREX COMPANY | 114.29 | 18.92% | 80.21% |
| PGTI | PGT INC | 19.45 | 24.35% | 66.24% |
| URI | UTD RENTALS INC | 170.36 | -6.70% | 62.09% |
| BLD | TOPBUILD CORP | 80.33 | 6.72% | 61.08% |
Top-Five Construction Stocks–Composite Score
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| URI | UTD RENTALS INC | 170.36 | -6.70% | 62.09% |
| PHM | PULTE GROUP ONC | 29.58 | -2.04% | 31.23% |
| DHI | D R HORTON INC | 41.39 | -13.11% | 25.96% |
| WGO | WINNEBAGO | 37.35 | -14.08% | 43.10% |
| TPH | TRI POINTE GRP | 16.85 | 16.56% | 36.66% |
Top-Five Construction Stocks–Most Overvalued
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| GLDD | GREAT LAKES DRG | 4.9 | 77.44% | N/A |
| USG | USG CORP | 41.59 | 35.90% | 44.96% |
| PGTI | PGT INC | 19.45 | 24.35% | 66.24% |
| RYN | RAYONIER INC | 37.42 | 23.92% | 35.73% |
| AEGN | AEGION CORP | 25.41 | 21.46% | 30.91% |
Free Download for Readers
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Caterpillar Inc. (CAT) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar provides the solutions you need to build a successful construction contracting business. Cat Connect makes smart use of technology and services to improve your operational efficiency. Working with your Cat dealer, you can find the right combination of Cat Connect technologies and services for your sites. Cat Financial provides retail and wholesale financing solutions to Cat customers and dealers for the complete line of Cat machinery and engines, Solar gas turbines, other related equipment and marine vessels. As a captive finance company, no other financial institution knows Cat customers and dealers better than Cat Financial. They offer quality service throughout the life cycle of equipment including purchase, protect, manage and resell.
VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on CATERPILLAR INC for 2018-05-17. Based on the information we have gathered and our resulting research, we feel that CATERPILLAR INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Momentum.
You can download a free copy of detailed report on Caterpillar Inc. (CAT) from the link below.
Read our Complete Rating and Forecast Report HERE.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 154.55 | 0.56% |
| 3-Month | 152.47 | -0.79% |
| 6-Month | 155.50 | 1.18% |
| 1-Year | 164.03 | 6.73% |
| 2-Year | 158.88 | 3.38% |
| 3-Year | 154.77 | 0.70% |
| Valuation & Rankings | |||
| Valuation | 3.81% overvalued | Valuation Rank(?) | 48 |
| 1-M Forecast Return | 0.56% | 1-M Forecast Return Rank | 88 |
| 12-M Return | 53.48% | Momentum Rank(?) | 89 |
| Sharpe Ratio | 0.48 | Sharpe Ratio Rank(?) | 77 |
| 5-Y Avg Annual Return | 10.67% | 5-Y Avg Annual Rtn Rank | 75 |
| Volatility | 22.22% | Volatility Rank(?) | 64 |
| Expected EPS Growth | 24.14% | EPS Growth Rank(?) | 56 |
| Market Cap (billions) | 93.04 | Size Rank | 99 |
| Trailing P/E Ratio | 17.47 | Trailing P/E Rank(?) | 70 |
| Forward P/E Ratio | 14.07 | Forward P/E Ratio Rank | 60 |
| PEG Ratio | 0.72 | PEG Ratio Rank | 48 |
| Price/Sales | 1.92 | Price/Sales Rank(?) | 51 |
| Market/Book | 13.82 | Market/Book Rank(?) | 12 |
| Beta | 1.31 | Beta Rank | 23 |
| Alpha | 0.21 | Alpha Rank | 84 |
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Steve Hach
Senior Editor
ValuEngine.com