{"id":3103,"date":"2023-03-21T22:30:13","date_gmt":"2023-03-21T22:30:13","guid":{"rendered":"http:\/\/blog.valuengine.com\/?p=3103"},"modified":"2023-03-22T18:09:19","modified_gmt":"2023-03-22T18:09:19","slug":"which-sp-500-stocks-are-currently-most-attractive","status":"publish","type":"post","link":"http:\/\/blog.valuengine.com\/index.php\/which-sp-500-stocks-are-currently-most-attractive\/","title":{"rendered":"Which S&P 500 Stocks Are Currently Most Attractive?"},"content":{"rendered":"

Those of you who follow ValuEngine\u2019s weekly lists of top-rated, (5 rated on scale of 1 to 5), Strong Buy stocks may have noticed that most of these stocks tend to be in the lower half of the market cap spectrum.\u00a0 This is a function of the fact that our scores are tied to our predictions for year-ahead percentage price change and simple mathematics.\u00a0 Simply put, it is more common for a stock with $10 billion dollar market capitalization to go to $100 billion (a 900% increase) than it is for a $300 billion solar stock to become a $3 trillion stock. There is only so much new money that can be invested in a stock.\u00a0 Simply put, a lot more new information can come into the market \u2013 and thus increase its price \u2013 for the stock of a virtually unknown company than the stock of a well-known company that has been priced by the dollar-weighted views of all investors in the market.\u00a0 The converse of this is that most $10 billion dollar stocks do not ever catch \u201clightning in a bottle\u201d for such huge growth as the above example, and are much more likely to be the stocks of companies that will eventually fail before becoming large enough for institutional investors to consider.<\/h4>\n

All 5,000 stocks, 16 sector groups, 140 industries, and 500 ETFs have been updated.<\/b><\/h5>\n
Two week free trial:<\/b> www.ValuEngine.com<\/b><\/a>\u00a0<\/b><\/h5>\n

The above paragraph is merely an information prelude to this week\u2019s article.\u00a0 Often the most attractive stocks in the S&P 500 will be rated 4 <\/b>(Buy) out of 5 <\/b>by ValuEngine rather than five because of the above phenomenon.\u00a0 There are more than 3 times as many 4<\/b>-rated stocks than there are 5- <\/b>rated stocks and these still represent above-average buying opportunities.<\/p>\n

Using ValuEngine\u2019s advanced screening tool, we can select 4 and 5 rated companies limited to stocks in the SPY ETF that is based upon the S&P 500 Index. As we can see in the table below, 20 stocks passed the screen with two strong buys; CEG and NCLH.<\/p>\n

Current ValuEngine reports on these stocks or ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n
Ticker<\/b><\/h5>\n<\/td>\n
<\/td>\n\n
Market Price<\/b><\/h5>\n<\/td>\n
\n
Rating<\/b><\/h5>\n<\/td>\n
\n
Forecast 1-Yr Price Gain(%)<\/b><\/h5>\n<\/td>\n
\n
Market Cap ($ Billions)<\/b><\/h5>\n<\/td>\n
\n
Lower Volatility Rank<\/b><\/h5>\n<\/td>\n
 Beta<\/b><\/td>\n P\/S Ratio<\/b><\/td>\n\n
Valuation Model Rank<\/b><\/h6>\n<\/td>\n<\/tr>\n
CEG<\/td>\n<\/td>\n78.80<\/td>\n5<\/td>\n16.0<\/b><\/td>\n25.8<\/td>\n47<\/td>\n0.67<\/td>\n1.1<\/td>\n75<\/td>\n<\/tr>\n
NCLH<\/td>\n<\/td>\n16.32<\/td>\n5<\/td>\n13.2<\/td>\n6.9<\/td>\n21<\/td>\n2.86<\/td>\n1.4<\/td>\n89<\/td>\n<\/tr>\n
ALL<\/td>\n<\/td>\n127.60<\/td>\n4<\/td>\n10.7<\/td>\n33.8<\/td>\n73<\/b><\/td>\n0.59<\/b><\/td>\n0.7<\/td>\n57<\/td>\n<\/tr>\n
INCY<\/td>\n<\/td>\n75.85<\/td>\n4<\/td>\n10.2<\/td>\n16.9<\/td>\n56<\/td>\n0.67<\/td>\n5.0<\/td>\n44<\/td>\n<\/tr>\n
AAL<\/td>\n<\/td>\n16.12<\/td>\n4<\/td>\n9.7<\/td>\n10.5<\/td>\n39<\/td>\n1.66<\/td>\n0.2<\/b><\/td>\n87<\/td>\n<\/tr>\n
ALK<\/td>\n<\/td>\n47.90<\/td>\n4<\/td>\n9.5<\/td>\n6.1<\/td>\n43<\/td>\n1.63<\/td>\n0.6<\/td>\n74<\/td>\n<\/tr>\n
EPAM<\/td>\n<\/td>\n310.34<\/td>\n4<\/td>\n9.0<\/td>\n17.8<\/td>\n34<\/td>\n1.63<\/td>\n3.7<\/td>\n50<\/td>\n<\/tr>\n
LNC<\/td>\n<\/td>\n30.33<\/td>\n4<\/td>\n8.7<\/td>\n5.1<\/td>\n39<\/td>\n1.84<\/td>\n0.3<\/td>\n75<\/td>\n<\/tr>\n
DAL<\/td>\n<\/td>\n38.46<\/td>\n4<\/td>\n8.7<\/td>\n24.7<\/td>\n44<\/td>\n1.35<\/td>\n0.5<\/td>\n76<\/td>\n<\/tr>\n
LUV<\/td>\n<\/td>\n33.76<\/td>\n4<\/td>\n8.5<\/td>\n20.0<\/td>\n49<\/td>\n1.19<\/td>\n0.8<\/td>\n77<\/td>\n<\/tr>\n
PAYC<\/td>\n<\/td>\n292.73<\/td>\n4<\/td>\n8.3<\/td>\n17.6<\/td>\n41<\/td>\n1.39<\/td>\n12.8<\/td>\n79<\/td>\n<\/tr>\n
CCL<\/td>\n<\/td>\n11.07<\/td>\n4<\/td>\n8.1<\/td>\n12.3<\/td>\n27<\/td>\n2.50<\/td>\n1.0<\/td>\n91<\/td>\n<\/tr>\n
CDAY<\/td>\n<\/td>\n74.47<\/td>\n4<\/td>\n8.0<\/td>\n11.3<\/td>\n45<\/td>\n1.49<\/td>\n9.1<\/td>\n22<\/td>\n<\/tr>\n
CMG<\/td>\n<\/td>\n1505.13<\/td>\n4<\/td>\n7.4<\/td>\n41.7<\/td>\n52<\/td>\n1.25<\/td>\n4.8<\/td>\n48<\/td>\n<\/tr>\n
NFLX<\/td>\n<\/td>\n312.03<\/td>\n4<\/td>\n7.1<\/td>\n139.0<\/b><\/td>\n40<\/td>\n1.33<\/td>\n4.4<\/td>\n84<\/td>\n<\/tr>\n
UAL<\/td>\n<\/td>\n52.44<\/td>\n4<\/td>\n7.1<\/td>\n17.1<\/td>\n38<\/td>\n1.56<\/td>\n0.4<\/td>\n80<\/td>\n<\/tr>\n
LVS<\/td>\n<\/td>\n59.94<\/td>\n4<\/td>\n6.6<\/td>\n45.8<\/td>\n48<\/td>\n1.18<\/td>\n11.1<\/td>\n10<\/td>\n<\/tr>\n
ETSY<\/td>\n<\/td>\n118.78<\/td>\n4<\/td>\n6.2<\/td>\n14.9<\/td>\n30<\/td>\n1.86<\/td>\n5.8<\/td>\n72<\/td>\n<\/tr>\n
TJX<\/td>\n<\/td>\n78.25<\/td>\n4<\/td>\n5.4<\/td>\n90.4<\/td>\n65<\/td>\n0.90<\/td>\n1.8<\/td>\n74<\/td>\n<\/tr>\n
LUMN<\/td>\n<\/td>\n3.30<\/td>\n4<\/td>\n4.9<\/td>\n3.4<\/td>\n44<\/td>\n1.10<\/td>\n0.2<\/b><\/td>\n94<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Current ValuEngine reports on these stocks or ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

The table above is sorted by projected year-ahead price gain percentage according to ValuEngine\u2019s predictive model.\u00a0 Beyond this column and the ranks, the table contains 4 additional informational columns:<\/p>\n

    \n
  1. Lower Volatility Rank<\/li>\n
  2. Beta<\/li>\n
  3. Price\/Sales Ratio<\/li>\n
  4. VE Valuation Model Rank.<\/li>\n<\/ol>\n

    The first two of the four measures listed above pertain to price volatility.\u00a0 The last two columns are measures of valuation. I chose price-to-sales over P\/E and P\/B as being subject to the least amount of accounting data manipulation.\u00a0 Others may prefer either of the other two.\u00a0 The VE valuation model considers how much an investor is paying for the stock with respect to expected future earnings and price gains and other factors.<\/p>\n

    For investment professionals with access to the system, the screener output contains many more data columns.\u00a0 The ValuEngine company reports supply all of this information and even more including company descriptions, many standard and non-standard universe ratios, balance sheet and income statement items.<\/p>\n

    Analysis<\/b><\/p>\n

    For reasons mentioned in the opening paragraph, although subject to the prevailing economic and technical market environments, the top-rated stocks tend to have above-average price volatility.\u00a0 This is shown with the exceptional high volatility and beta of the second highest rank stock, NCLH<\/b>,\u00a0 Norwegian Cruise Line.\u00a0 While common, this is by no means universal.\u00a0 Allstate, ALL<\/b>, is the least volatile of the stocks in the table.\u00a0 The highest-ranked stock by market capitalization is Netflix, NFLX.\u00a0 <\/b>The most undervalued stock Is Lumen Technologies, LUMN. <\/b>Lumen is also the smallest\u00a0 market cap company in the table.<\/p>\n

    Although they are very volatile, there are seven Travel and Leisure related stocks in the list.\u00a0 Six also score well in our valuation model and have low price\/sales ratios. These include: Norwegian Cruise Line (NCLH<\/b>), American Airlines (AAL<\/b>), Carnival Cruise Lines (CCL)<\/b>, Delta Air Lines (DAL)<\/b>, Southwest Air (LUV)<\/b> and United Airlines (UAL<\/b>).\u00a0 Las Vegas Sands (LVS) <\/b>is the 7th T&L stock on the list, but it is overpriced according to our valuation model and its ratios.<\/p>\n

    Although they are characterized as Internet\/Software, Netflix (NFLX<\/b>) and Etsy, Inc. (ETSY) <\/b>could arguably be called leisure companies also.\u00a0 So, nearly nine of our model\u2019s most attractive company stocks are related in one way or another to travel and leisure.\u00a0 This may indicate that the pent-up demand for activities from Covid restraints in 2020 and 2021 has not yet been satisfied.<\/p>\n

    Given this week\u2019s theme, I did not include my usual ETF benchmarks for comparison.\u00a0 Instead, I include an event note about the industry\u2019s ETF.com awards dinner.<\/p>\n

    Financial Advisory Services based on ValuEngine research available: <\/b>\u00a0<\/b>\u00a0www.ValuEngineCapital.com<\/b><\/a><\/h5>\n

    Event Note<\/strong><\/p>\n

    For any\u00a0follower who missed it, the nominations for the\u00a0etf.com<\/a>\u00a0Awards 2023 are now finalized and in the hands of an illustrious panel of judges. The dinner announcing the winners will be on May 2, 2023 and is institutionally priced at $365 per ticket at the sumptuous Tribecca Rooftop in\u00a0New York City.<\/p>\n

    Many of us who cannot attend will be there in spirit. The next day, May 3, we will read the judges decisions with great interest.\u00a0 Of special interest to yours truly is the Lifetime Achievement Award awash with nominees I know well and who have contributed a great deal to shaping the success of the ETF industry from the very beginning. The group includes:\u00a0Jay Baker; Joanne Hill;\u00a0Jan van Eck;\u00a0Anna Paglia\u00a0and\u00a0Anthony Rochte.<\/p>\n

    The most prestigious ETF category is the:ETF of the Year <\/b>award.
    \n<\/b>It is awarded to the ETF that has done the most to improve investor opportunities and outcomes in 2022 by providing access to interesting areas of the market, lowering costs, delivering new exposures or otherwise creating better results for investors.<\/p>\n

    2023 Nominees
    \nAXS Astoria Inflation Sensitive ETF (PPI<\/b>)
    \nAmplify CWP Enhanced Dividend Income ETF (DIVO<\/b>)
    \nInvesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC<\/b>)
    \nJPMorgan Equity Premium Income ETF (JEPI<\/b>)
    \nPacer ETFs\u00a0U.S. Cash Cows 100 ETF (COWZ<\/b>)
    \nSchwab U.S. Dividend Equity ETF (SCHD<\/b>).<\/p>\n

    In the interest of disclosure, I personally hold positions in SCHD and JEPI. I’ve also noted in my blog how well COWZ fared in this environment. Congratulations to all the nominees!<\/p>\n

    For those interested in perusing the lists of nominees, the hyperlink to the page is: https:\/\/awards.etf.com\/<\/a><\/p>\n

    _______________________________________________________________________________<\/p>\n

    By Herbert Blank<\/b><\/h5>\n
    Senior Quantitative Analyst, ValuEngine Inc<\/b><\/h5>\n
    www.ValuEngine.com<\/b><\/a><\/h5>\n
    support@ValuEngine.com<\/b><\/h5>\n
    All of the approximately 5,000 stocks, 16 sector groups, 140 industries, and 600 ETFs have been updated on<\/b> www.ValuEngine.com<\/b><\/a><\/h5>\n
    Financial Advisory Services based on ValuEngine research available through<\/b> ValuEngine Capital Management, LLC<\/b><\/a><\/h5>\n
    Free Two Week Trial to all 5,000 plus equities covered by ValuEngine<\/b> HERE<\/b><\/a><\/h5>\n

    Subscribers log in<\/b> HERE<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Those of you who follow ValuEngine\u2019s weekly lists of top-rated, (5 rated on scale of 1 to 5), Strong Buy stocks may have noticed that most of these stocks tend to be in the lower half of the market cap spectrum.\u00a0 This is a function of the fact that our scores are tied to our … Read more<\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[130,1,39],"tags":[38,969,424,2178,844,2174,2177,623,609,2180,1188,1731,2185,2179,143,2183,1120,2182,1100,2181,1713,1840,93,1699,1687,2184,813,2176,399,28,1659,63],"_links":{"self":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3103"}],"collection":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/comments?post=3103"}],"version-history":[{"count":5,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3103\/revisions"}],"predecessor-version":[{"id":3108,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3103\/revisions\/3108"}],"wp:attachment":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/media?parent=3103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/categories?post=3103"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/tags?post=3103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}