November 19, 2015

VALUATION WATCH: Overvalued stocks now make up 50.37% of our stocks assigned a valuation and 19.05% of those equities are calculated to be overvalued by 20% or more. Nine sectors are calculated to be overvalued--with one overvalued by double digits.

Indexing

--ValuEngine Rates and Ranks the SP500, Tesoro Dominates

ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities.  When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient--an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.

We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.

We can use our data to track individual stocks, industries, sectors, and indices. For today's bulletin, we present key metrics for the top picks in the S&P 500. The companies listed below represent the top-ten STRONG BUY stocks within the index. They are presented below according to their one-month forecast target prices.

Tesoro Corp is the overall leader.

Below is today's data on Tesoro Corp (TSO):

Tesoro was founded in 1968 as a company primarily engaged in petroleum exploration and production. In 1969, Tesoro began operating Alaska's first refinery near Kenai. Tesoro, a major refiner, is up big for the year despite low oil prices. They currently forecast big continued growth for 2015 and have been a real bright spot in the energy sector. Their business includes refineries in profitable western markets as well as an oil transportation network and more than 2000 gas stations. That vertical integration allows them to profit even as other firms in the sector falter.

VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on TESORO CORP for 2015-11-18. Based on the information we have gathered and our resulting research, we feel that TESORO CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Sharpe Ratio and Momentum.

You can download a free copy of detailed report on TSO from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	115.43	1.48%
3-Month	118.87	4.50%
6-Month	122.25	7.47%
1-Year	134.05	17.85%
2-Year	135.43	19.06%
3-Year	132.56	16.53%

Valuation & Rankings
Valuation	11.26% overvalued	Valuation Rank(?)	30
1-M Forecast Return	1.48%	1-M Forecast Return Rank	100
12-M Return	59.29%	Momentum Rank(?)	95
Sharpe Ratio	1.08	Sharpe Ratio Rank(?)	97
5-Y Avg Annual Return	42.21%	5-Y Avg Annual Rtn Rank	99
Volatility	38.94%	Volatility Rank(?)	46
Expected EPS Growth	-31.66%	EPS Growth Rank(?)	10
Market Cap (billions)	14.36	Size Rank	93
Trailing P/E Ratio	8.28	Trailing P/E Rank(?)	94
Forward P/E Ratio	12.11	Forward P/E Ratio Rank	70
PEG Ratio	n/a	PEG Ratio Rank	n/a
Price/Sales	0.47	Price/Sales Rank(?)	82
Market/Book	2.15	Market/Book Rank(?)	47
Beta	1.89	Beta Rank	11
Alpha	0.35	Alpha Rank	93

DOWNLOAD A FREE SAMPLE OF OUR TESORO (TSO) REPORT BY CLICKING HERE
(LINK FIXED)

ValuEngine Market Overview

ValuEngine Sector Overview