ValuEngine Weekly: Construction Stocks, Caterpillar, Valuations, and More

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

As a bonus to our Free Weekly Newsletter subscribers,
we are offering a FREE DOWNLOAD of one of our Stock Reports

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

 

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
Contact ValuEngine at (800) 381-5576 or support@valuengine.com  
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ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine’s award-winning stock research.
Contact ValuEngine Capital at info@valuenginecapital.com
Visit www.ValuEngineCapital.com for more information

 

Steve Hach
Senior Editor
ValuEngine.com