ValuEngine Weekly: Utilities Stocks, Altria Group, Valuations, and More

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

 

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 (321) 325-0519 or support@valuengine.com  
Visit www.ValuEngine.com for more information

 

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