March 24, 2016

VALUATION WATCH: Overvalued stocks now make up 39.11% of our stocks assigned a valuation and 12.18% of those equities are calculated to be overvalued by 20% or more. One sector is calculated to be overvalued.

Indexing

--ValuEngine Rates and Ranks the DOW

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 Dow Jones Industrials. The companies listed below represent the top buy-rated stocks within the index. They are presented below according to their one-month forecast gain.

Traveler's Insurance remains the overall leader. Since the last time we presented the top Dow picks, Goldman has fallen from the top five while Verizon, JPMorgan, Intel, Cisco, and Microsoft have moved up. IBM and Johnson and Johnson have also declined. Apple has dropped out of the top-ten list. The sole newcomer is General Electric.

NOTE: New stocks are in BOLD, old stocks that have moved up the list are in GREEN, old stocks that have declined in position are in RED, and stocks which have retained their position are in CAPS.

Below is today's data on General Electric (GE):

General Electric Company operates as a technology and financial services company. Its segments include Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. The company's Energy Infrastructure segment offers wind turbines; gas and steam turbines and generators. Its Aviation segment offers jet engines, turboprop and turbo shaft engines, aerospace systems and equipment. Its Healthcare segment provides medical imaging and information technologies, medical diagnostics, patient monitoring systems. Its Transportation segment provides drive technology solutions to various industries. Its Home and Business Solutions segment provides home appliances; lighting products, plant automation, hardware, software, and embedded computing systems. Its GE Capital segment offers commercial loans and leases, fleet management, financial programs, credit cards, personal loans and other financial services. General Electric Company is headquartered in Fairfield, Connecticut.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on GENL ELECTRIC for 2016-03-23. Based on the information we have gathered and our resulting research, we feel that GENL ELECTRIC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Momentum.

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

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	31.23	0.52%
3-Month	31.91	2.71%
6-Month	32.97	6.13%
1-Year	33.02	6.27%
2-Year	39.28	26.43%
3-Year	41.79	34.51%

Valuation & Rankings
Valuation	37.88% overvalued	Valuation Rank(?)	6
1-M Forecast Return	0.52%	1-M Forecast Return Rank	86
12-M Return	21.99%	Momentum Rank(?)	91
Sharpe Ratio	0.36	Sharpe Ratio Rank(?)	82
5-Y Avg Annual Return	6.63%	5-Y Avg Annual Rtn Rank	78
Volatility	18.56%	Volatility Rank(?)	78
Expected EPS Growth	13.33%	EPS Growth Rank(?)	51
Market Cap (billions)	312.48	Size Rank	100
Trailing P/E Ratio	22.19	Trailing P/E Rank(?)	52
Forward P/E Ratio	19.58	Forward P/E Ratio Rank	30
PEG Ratio	1.66	PEG Ratio Rank	28
Price/Sales	2.66	Price/Sales Rank(?)	33
Market/Book	17.49	Market/Book Rank(?)	7
Beta	1.18	Beta Rank	35
Alpha	0.22	Alpha Rank	89

DOWNLOAD A FREE SAMPLE OF OUR GENERAL ELECTRIC (GE) REPORT BY CLICKING HERE
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ValuEngine Market Overview

ValuEngine Sector Overview