ValuEngine Weekly Newsletter January 27, 2017

VALUATION WARNING: Overvalued stocks now make up 67.6% of our stocks assigned a valuation and 34.67% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued.

ValuEngine Index Overview

Index
Week Open
Friday AM
Change
% Change
YTD
DJIA
19794.79
20097.42
302.63
1.53%
1.69%
NASDAQ
5546.64
5647.44
100.8
1.82%
4.91%
RUSSELL 2000
1351.41
1371.35
19.94
1.48%
1.05%
S&P 500
2267.78
2294.01
26.23
1.16%
2.46%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued
32.4%
Stocks Overvalued
67.6%
Stocks Undervalued by 20%
14.18%
Stocks Overvalued by 20%
34.67%

ValuEngine Sector Overview

Sector
Change
MTD
YTD
Valuation
Last 12-MReturn
P/E Ratio
Industrial Products
-0.26%
3.69%
3.69%
23.33% overvalued
38.97%
25.30
Multi-Sector Conglomerates
-0.22%
3.86%
3.86%
21.53% overvalued
30.28%
20.46
Oils-Energy
0.20%
4.57%
4.57%
21.21% overvalued
52.90%
28.91
Transportation
-0.70%
5.92%
5.92%
19.50% overvalued
31.73%
19.14
Basic Materials
-0.91%
8.08%
8.06%
17.22% overvalued
92.81%
29.39
Finance
-0.04%
1.77%
1.77%
17.01% overvalued
26.01%
18.19
Construction
-0.14%
3.31%
3.31%
16.75% overvalued
43.57%
21.28
Aerospace
-0.73%
1.78%
1.78%
16.74% overvalued
25.96%
20.79
Business Services
-0.09%
1.94%
1.94%
13.58% overvalued
19.97%
24.55
Computer and Technology
-0.42%
4.20%
4.78%
12.83% overvalued
26.04%
30.91
Utilities
-0.07%
2.61%
2.61%
12.47% overvalued
24.53%
22.18
Auto-Tires-Trucks
-0.34%
3.15%
3.15%
10.17% overvalued
38.67%
15.05
Consumer Staples
-0.41%
2.04%
2.04%
7.94% overvalued
14.85%
23.92
Consumer Discretionary
-0.63%
1.77%
1.77%
7.37% overvalued
25.80%
24.19
Retail-Wholesale
-1.12%
-0.69%
-0.69%
0.71% overvalued
11.20%
22.97
Medical
-0.27%
3.82%
3.82%
4.48% undervalued
5.61%
27.61

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 (%)
CCS
CENTURY COMMUNT
23.45
N/A
59.09%
GRAM
GRANA Y MONTERO
5.26
N/A
139.09%
TMHC
TAYLOR MORRISON
21.57
21.18%
81.72%
WLH
WILLIAM LYON HM
17.83
-6.78%
55.99%
PGEM
PLY GEM HOLDING
16.6
18.36%
71.13%

Top-Five Construction Stocks–Momentum

Ticker
Name
Mkt Price
Valuation (%)
Last 12-M Return (%)
GV
GOLDFIELD CORP
6.45
N/A
403.91%
WLDN
WILLDAN GROUP
26.54
82.34%
215.20%
ORN
ORION GROUP HLD
11.01
23.38%
214.57%
MTZ
MASTEC INC
41.55
50.66%
190.15%
TPC
TUTOR PERINI CP
32.4
63.01%
172.96%

Top-Five Construction Stocks–Composite Score

Ticker
Name
Mkt Price
Valuation (%)
Last 12-M Return (%)
WLH
WILLIAM LYON HM
17.83
-6.78%
55.99%
MTH
MERITAGE HOMES
37.55
-6.87%
33.63%
PHM
PULTE GROUP ONC
21.18
-1.42%
29.70%
KBH
KB HOME
17.16
1.29%
64.84%
TPH
TRI POINTE GRP
12.75
-4.26%
25.12%

Top-Five Construction Stocks–Most Overvalued

Ticker
Name
Mkt Price
Valuation (%)
Last 12-M Return (%)
WLDN
WILLDAN GROUP
26.54
82.34%
215.20%
TPC
TUTOR PERINI CP
32.4
63.01%
172.96%
GVA
GRANITE CONSTRU
58.83
53.71%
53.28%
MTZ
MASTEC INC
41.55
50.66%
190.15%
URI
UTD RENTALS INC
127.06
49.55%
123.34%

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

Verizon Communications (VZ), formed by the merger of Bell Atlantic and GTE, is one of the world’s leading providers of high-growth communications services. Verizon companies are the largest providers of wireline and wireless communications in the United States. Verizon is also the world’s largest provider of print and on-line directory information.

VALUENGINE RECOMMENDATION: ValuEngine continues its HOLD recommendation on Verizon Communications for 2017-01-26. Based on the information we have gathered and our resulting research, we feel that Verizon Communications has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.

You can download a free copy of detailed report on Verizon Communications (VZ) from the link below.

Read our Complete Detailed Valuation Report on Verizon (VZ) HERE.

ValuEngine Forecast
Target
Price*
Expected
Return
1-Month
49.23 0.22%
3-Month
49.37 0.50%
6-Month
48.76 -0.73%
1-Year
50.45 2.70%
2-Year
51.18 4.19%
3-Year
46.51 -5.32%
Valuation & Rankings
Valuation
0.63% undervalued Valuation Rank(?)
69
1-M Forecast Return
0.22% 1-M Forecast Return Rank
69
12-M Return
1.80% Momentum Rank(?)
29
Sharpe Ratio
0.35 Sharpe Ratio Rank(?)
71
5-Y Avg Annual Return
5.71% 5-Y Avg Annual Rtn Rank
64
Volatility
16.20% Volatility Rank(?)
79
Expected EPS Growth
1.81% EPS Growth Rank(?)
22
Market Cap (billions)
203.83 Size Rank
100
Trailing P/E Ratio
12.69 Trailing P/E Rank(?)
87
Forward P/E Ratio
12.47 Forward P/E Ratio Rank
74
PEG Ratio
7.02 PEG Ratio Rank
5
Price/Sales
1.59 Price/Sales Rank(?)
56
Market/Book
9.27 Market/Book Rank(?)
15
Beta
0.39 Beta Rank
68
Alpha
0.11 Alpha Rank
67

ValuEngineCapital Money Management Services

We are pleased to announce that ValuEngine Capital has begun trading for our clients. ValuEngine Capital, a registered investment advisory firm, offers our clients investment-management services based on industry-leading ValuEngine research. ValuEngine Capital melds the cutting-edge financial theory of ValuEngine’s award-winning quantitative independent research with the best real-world Wall St. practices. ValuEngine Capital offers refined investment portfolios for investors of all risk-reward profiles.

ValuEngine Capital is offering several investment strategies to clients, including the the ValuEngine View Strategy and the ValuEngine Diversified Strategy

Professional Portfolio Management Services

ValuEngine View Strategy: The ValuEngine View Strategy is the product of a sophisticated stock valuation model that was first developed by ValuEngine’s academic research team.

  • It utilizes a three factor approach: fundamental variables such as a company’s trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company’s future 12-month EPS, and the 30-year Treasury yield are all used to create a more accurate reflection of a company’s fair value.
  • A total of eleven additional firm specific variables are also used. The ValuEngine View portfolio is constructed by integrating both our Aggressive Growth—based on the Valuation Model–and Diversified Growth—based on the Forecast Model– Portfolio Strategies.
  • The ValuEngine View Strategy  is constructed by integrating this model along with some basic rules for market capitalization and industry diversification. The portfolio has 15 stocks and is rebalanced once each month.

Strategies To Suit All Investor Types

The ValuEngine Diversified Strategy: The ValuEngine Diversified Strategy invests in a variety of asset classes in order to provide investors with stable returns and a high- dividend yield coupled with significantly lower risk than single-asset products. 

  • The ValuEngine Diversified Strategy may include ETFs focused on commodities, stock indices, REITS, bonds, emerging markets, and other suitable products.
  • By reaping the benefits of diversification, the ValuEngine Diversified Strategy seeks to remain resilient during times of market volatility.
  • The ValuEngine Diversified Strategy is designed for investors seeking management for their IRA and other retirement funds as well as those whose risk-profile is not suitable for our other strategies.

For more information, please contact us by email at info@ValuEngineCapital.com
or by phone at (407) 308-5686.

Or, sign up online with our easy-to-use portal HERE:

ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day.

Leave a Comment