Editor’s Note: We will be on a reduced publication schedule for the holidays and holiday travel. We will not publish a newsletter/bulletin on December 24th and 26th, or January 2nd. We will return to our normal publication schedule on January 7th.
This week, we provide top-five ranked VE data for our Utilities Sector stocks, we also take a look at Altria Group $MO and provide a free download link for our stock report on the company.
VALUATION WATCH: Overvalued stocks now make up 21.32% of our stocks assigned a valuation and 7.44% of those equities are calculated to be overvalued by 20% or more. There are no sectors calculated to be overvalued.
ValuEngine Index Overview
| Index | Week Open | Thursday PM | Change | % Change | YTD |
| DJIA | 23986.83 | 23011.26 | -975.57 | -4.07% | -6.91% |
| NASDAQ | 6886.46 | 6549.02 | -337.44 | -4.90% | -5.13% |
| RUSSELL 2000 | 1410.77 | 1327.98 | -82.79 | -5.87% | -13.52% |
| S&P 500 | 2590.75 | 2480.87 | -109.88 | -4.24% | -7.21% |
ValuEngine Market Overview
| Summary of VE Stock Universe | |
| Stocks Undervalued | 78.68% |
| Stocks Overvalued | 21.32% |
| Stocks Undervalued by 20% | 48.1% |
| Stocks Overvalued by 20% | 7.44% |
ValuEngine Sector Overview
| Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio |
| Utilities | -1.16% | -7.11% | -2.25% | 0.81% undervalued | -2.67% | 19.66 |
| Computer and Technology | -1.69% | -8.45% | -6.96% | 8.23% undervalued | -1.06% | 26.53 |
| Aerospace | -1.88% | -5.88% | -8.79% | 9.01% undervalued | -5.00% | 23.78 |
| Consumer Staples | -0.92% | -7.48% | -7.96% | 10.21% undervalued | -6.76% | 21.80 |
| Retail-Wholesale | -1.29% | -10.75% | -12.53% | 12.16% undervalued | -6.40% | 19.69 |
| Business Services | -0.94% | -9.38% | -6.61% | 13.13% undervalued | -5.83% | 20.03 |
| Medical | -1.81% | -12.70% | -0.70% | 13.56% undervalued | 10.12% | 25.68 |
| Auto-Tires-Trucks | -1.67% | -10.08% | -23.09% | 15.23% undervalued | -24.87% | 10.32 |
| Finance | -1.29% | -8.40% | -12.23% | 16.73% undervalued | -10.27% | 14.80 |
| Consumer Discretionary | -1.02% | -7.31% | -13.37% | 16.85% undervalued | -9.01% | 22.42 |
| Multi-Sector Conglomerates | -0.93% | -5.56% | -16.60% | 17.45% undervalued | -15.67% | 15.76 |
| Transportation | -1.71% | -12.17% | -17.00% | 20.98% undervalued | -16.37% | 16.48 |
| Industrial Products | -1.32% | -9.44% | -14.85% | 21.63% undervalued | -12.77% | 19.95 |
| Basic Materials | -1.55% | -7.02% | -15.82% | 24.24% undervalued | -21.56% | 17.18 |
| Construction | -0.86% | -10.32% | -20.37% | 27.00% undervalued | -22.73% | 17.43 |
| Oils-Energy | -0.76% | -10.89% | -16.03% | 39.94% undervalued | -18.54% | 16.11 |
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Sector Talk–Utilities
Below, we present the latest data on Utilities 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 Utilities Stocks–Short-Term Forecast Returns
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| SHEN | SHENANDOAH TELE | 46 | 72.39% | 34.50% |
| CWT | CALIF WATER SVC | 47.19 | 43.48% | 7.62% |
| EE | EL PASO ELEC CO | 53.02 | 27.60% | -8.90% |
| VG | VONAGE HOLDINGS | 9.09 | 26.66% | -11.40% |
| NWN | NORTHWEST NATRL | 63.57 | 22.45% | 1.71% |
Top-Five Utilities Stocks–Momentum
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| AMRC | AMERESCO INC-A | 14.69 | 16.95% | 72.82% |
| NRG | NRG ENERGY INC | 40.89 | -10.94% | 48.21% |
| AES | AES CORP | 14.98 | 11.75% | 36.80% |
| SHEN | SHENANDOAH TELE | 46 | 72.39% | 34.50% |
| VST | VISTRA ENERGY | 23.36 | N/A | 31.31% |
Top-Five Utilities Stocks–Composite Score
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| AES | AES CORP | 14.98 | 11.75% | 36.80% |
| VZ | VERIZON COMM | 55.65 | 7.16% | 4.51% |
| EXC | EXELON CORP | 45.8 | 8.91% | 13.14% |
| FE | FIRSTENERGY CP | 37.63 | 15.53% | 19.42% |
| ETR | ENTERGY CORP | 87.09 | 8.18% | 5.32% |
Top-Five Utilities Stocks–Most Overvalued
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| SHEN | SHENANDOAH TELE | 46 | 72.39% | 34.50% |
| CWT | CALIF WATER SVC | 47.19 | 43.48% | 7.62% |
| EE | EL PASO ELEC CO | 53.02 | 27.60% | -8.90% |
| VG | VONAGE HOLDINGS | 9.09 | 26.66% | -11.40% |
| VVC | VECTREN CORP | 71.74 | 26.58% | 6.82% |
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
Altria Group (MO) is the parent company of Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Ste. Michelle Wine Estates and Philip Morris Capital Corporation. Their tobacco company brand portfolios consist of successful and well-known brand names such as Marlboro, Copenhagen, Skoal and Black & Mild.
VALUENGINE RECOMMENDATION: ValuEngine continues its SELL recommendation on ALTRIA GROUP for 2018-12-19. Based on the information we have gathered and our resulting research, we feel that ALTRIA GROUP has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE Book Market Ratio and Momentum.
You can download a free copy of detailed report on Altria Group (MO) from the link below.
Read our Complete Rating and Forecast Report HERE.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 51.14 | -0.50% |
| 3-Month | 50.97 | -0.84% |
| 6-Month | 50.01 | -2.70% |
| 1-Year | 48.33 | -5.98% |
| 2-Year | 51.80 | 0.78% |
| 3-Year | 53.49 | 4.07% |
| Valuation & Rankings | |||
| Valuation | 27.43% undervalued | Valuation Rank(?) | 65 |
| 1-M Forecast Return | -0.50% | 1-M Forecast Return Rank | 17 |
| 12-M Return | -30.45% | Momentum Rank(?) | 20 |
| Sharpe Ratio | 0.40 | Sharpe Ratio Rank(?) | 81 |
| 5-Y Avg Annual Return | 7.88% | 5-Y Avg Annual Rtn Rank | 77 |
| Volatility | 19.81% | Volatility Rank(?) | 69 |
| Expected EPS Growth | 8.05% | EPS Growth Rank(?) | 37 |
| Market Cap (billions) | 101.59 | Size Rank | 100 |
| Trailing P/E Ratio | 12.93 | Trailing P/E Rank(?) | 71 |
| Forward P/E Ratio | 11.96 | Forward P/E Ratio Rank | 54 |
| PEG Ratio | 1.61 | PEG Ratio Rank | 25 |
| Price/Sales | 4.01 | Price/Sales Rank(?) | 23 |
| Market/Book | 6.56 | Market/Book Rank(?) | 19 |
| Beta | 0.40 | Beta Rank | 67 |
| Alpha | -0.23 | Alpha Rank | 28 |
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Steve Hach
Senior Editor
ValuEngine.com