This week, we provide top-five ranked VE data for our Health Care stocks. We take a look at our latest data on IBM $IBM. We currently have an overvaluation watch underway.
VALUATION WATCH: Overvalued stocks now make up 61.45% of our stocks assigned a valuation and 25.36% of those equities are calculated to be overvalued by 20% or more. Thirteen sectors are calculated to be overvalued.
ValuEngine Index Overview
| Index | Week Open | Friday AM | Change | % Change | YTD |
| DJIA | 20962.73 | 20919.06 | -43.67 | -0.21% | 5.85% |
| NASDAQ | 6067.56 | 6071.55 | 3.99 | 0.07% | 12.79% |
| RUSSELL 2000 | 1401.01 | 1387.75 | -13.26 | -0.95% | 2.26% |
| S&P 500 | 2388.5 | 2390.89 | 2.39 | 0.10% | 6.79% |
ValuEngine Market Overview
| Summary of VE Stock Universe | |
| Stocks Undervalued | 38.55% |
| Stocks Overvalued | 61.45% |
| Stocks Undervalued by 20% | 16.81% |
| Stocks Overvalued by 20% | 25.36% |
ValuEngine Sector Overview
| Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio |
| Multi-Sector Conglomerates | -0.25% | -0.87% | 6.69% | 18.06% overvalued | 13.74% | 20.28 |
| Industrial Products | -0.29% | -0.46% | 5.39% | 15.45% overvalued | 25.95% | 24.39 |
| Computer and Technology | -0.47% | -0.68% | 13.98% | 15.35% overvalued | 22.87% | 30.53 |
| Finance | -0.23% | -0.24% | 4.21% | 11.11% overvalued | 16.92% | 17.69 |
| Aerospace | -0.40% | -0.96% | 2.77% | 10.56% overvalued | 21.38% | 22.84 |
| Utilities | -1.92% | -2.97% | 6.21% | 8.32% overvalued | 15.74% | 23.05 |
| Business Services | -0.09% | -0.30% | 6.62% | 7.89% overvalued | 12.00% | 24.52 |
| Consumer Discretionary | -0.45% | -0.89% | 6.64% | 6.98% overvalued | 22.66% | 26.23 |
| Consumer Staples | -0.32% | -0.78% | 4.90% | 5.72% overvalued | 13.41% | 24.80 |
| Auto-Tires-Trucks | -0.23% | -1.00% | 6.67% | 5.65% overvalued | 25.31% | 14.62 |
| Transportation | -0.41% | -0.82% | 5.21% | 5.52% overvalued | 9.65% | 20.50 |
| Construction | 0.06% | -1.07% | 11.47% | 4.54% overvalued | 19.51% | 21.86 |
| Medical | -0.24% | 0.17% | 10.93% | 0.75% overvalued | 6.67% | 28.03 |
| Retail-Wholesale | -0.76% | -1.03% | 3.97% | 0.71% overvalued | 8.38% | 24.16 |
| Basic Materials | -1.91% | -3.25% | 1.95% | 3.04% undervalued | 19.65% | 24.30 |
| Oils-Energy | -2.48% | -3.20% | -6.08% | 8.45% undervalued | 3.91% | 30.06 |
Sector Talk–Health Care
Below, we present the latest data on Health Care 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 Health Care Stocks–Short-Term Forecast Returns
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| LCI | LANNETT INC | 21.2 | -42.01% | 7.23% |
| UTHR | UTD THERAPEUTIC | 122.32 | -13.39% | 13.05% |
| EGRX | EAGLE PHARMACT | 87.39 | -5.67% | 132.54% |
| SCMP | SUCAMPO PHARMAC | 10.15 | -30.46% | -5.49% |
| ENDP | ENDO INTL PLC | 11.17 | -75.00% | -59.19% |
Top-Five Health Care Stocks–Momentum
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| AKAO | ACHOGEN INC | 24.99 | 236.31% | 716.67% |
| LNTH | LANTHEUS HLDGS | 13.75 | N/A | 597.97% |
| EXAS | EXACT SCIENCES | 31.96 | 114.71% | 450.09% |
| EXEL | EXELIXIS INC | 22.04 | 60.06% | 409.01% |
| CLVS | CLOVIS ONCOLOGY | 51.36 | 18.71% | 289.39% |
Top-Five Health Care Stocks–Composite Score
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| EGRX | EAGLE PHARMACT | 87.39 | -5.67% | 132.54% |
| UTHR | UTD THERAPEUTIC | 122.32 | -13.39% | 13.05% |
| AZN | ASTRAZENECA PLC | 30.63 | -1.62% | 8.39% |
| MYL | MYLAN NV | 38.01 | -22.64% | -9.37% |
| LCI | LANNETT INC | 21.2 | -42.01% | 7.23% |
Top-Five Health Care Stocks–Most Overvalued
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| LJPC | LA JOLLA PHARMA | 27.69 | 300.00% | 61.08% |
| CYH | COMMNTY HLTH SY | 9.61 | 300.00% | -36.02% |
| VIVE | VIVEVE MEDICAL | 7.7 | 300.00% | -9.41% |
| AKAO | ACHOGEN INC | 24.99 | 236.31% | 716.67% |
| TSRO | TESARO INC | 143.59 | 223.33% | 258.44% |
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IBM (IBM) is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure services and business process services. The Global Business Services segment offers professional services and application management services. The Software segment consists primarily of middleware and operating systems software. The Systems and Technology segment provides computing power and storage solutions; and semiconductor technology products and packaging solutions. The Global Financing segment invests in financing assets, leverages with debt and manages the associated risks. IBM is headquartered in Armonk, New York.
VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on IBM for 2017-05-04. Based on the information we have gathered and our resulting research, we feel that IBM has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.
You can download a free copy of detailed report on IBM (IBM) from the link below.
Read our Complete Rating and Forecast Report HERE.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 160.14 | 0.68% |
| 3-Month | 161.39 | 1.47% |
| 6-Month | 161.14 | 1.31% |
| 1-Year | 172.12 | 8.22% |
| 2-Year | 171.93 | 8.10% |
| 3-Year | 173.77 | 9.25% |
| Valuation & Rankings | |||
| Valuation | 4.59% overvalued | Valuation Rank(?) | 54 |
| 1-M Forecast Return | 0.68% | 1-M Forecast Return Rank | 90 |
| 12-M Return | 10.26% | Momentum Rank(?) | 48 |
| Sharpe Ratio | -0.29 | Sharpe Ratio Rank(?) | 27 |
| 5-Y Avg Annual Return | -5.12% | 5-Y Avg Annual Rtn Rank | 36 |
| Volatility | 17.62% | Volatility Rank(?) | 76 |
| Expected EPS Growth | 1.33% | EPS Growth Rank(?) | 23 |
| Market Cap (billions) | 157.62 | Size Rank | 100 |
| Trailing P/E Ratio | 11.74 | Trailing P/E Rank(?) | 88 |
| Forward P/E Ratio | 11.58 | Forward P/E Ratio Rank | 77 |
| PEG Ratio | 8.84 | PEG Ratio Rank | 4 |
| Price/Sales | 1.99 | Price/Sales Rank(?) | 49 |
| Market/Book | 8.54 | Market/Book Rank(?) | 17 |
| Beta | 0.97 | Beta Rank | 43 |
| Alpha | -0.05 | Alpha Rank | 40 |
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