March 31, 2016

VALUATION WATCH: Overvalued stocks now make up 43.95% of our stocks assigned a valuation and 14.23% of those equities are calculated to be overvalued by 20% or more. Five sectors are calculated to be overvalued.

Indexing

--ValuEngine Rates and Ranks the S&P500

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 BUY/STRONG BUY stocks within the index. They are presented below according to their one-month forecast target prices.

The components of this list are farily similar to the last time we presented the top S&P picks in February. Our leader is still Akron's Finest., Goodyear Tire. Delta, Assurant, and Phillips 66 have moved up, Valero, First Solar, and Travelers have declined slightly. We have two newcomers, Eastman Chemical and LAM Research. Our list is still dominated by Finance and Oil/Energy firms. .

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 one of our newcomers, Eastman Chemical (EMN):

Eastman Chemical Company is a global chemical company with a broad portfolio of chemical, plastic, and fiber products. The company manufactures and sells chemicals and specialty polymers supplied to the inks, coatings, adhesives, sealants, and textile industries; fine chemicals; performance chemicals and intermediates; specialty plastics; polyester plastics such as polyethylene terephthalate sold under the trademark EASTAPAK polymers; and fibers.

VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on EASTMAN CHEM CO for 2016-03-30. Based on the information we have gathered and our resulting research, we feel that EASTMAN CHEM CO has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio. .

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

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	74.06	1.08%
3-Month	74.66	1.90%
6-Month	75.52	3.07%
1-Year	82.80	13.00%
2-Year	76.39	4.26%
3-Year	71.16	-2.88%

Valuation & Rankings
Valuation	10.13% undervalued	Valuation Rank(?)	62
1-M Forecast Return	1.08%	1-M Forecast Return Rank	98
12-M Return	4.08%	Momentum Rank(?)	75
Sharpe Ratio	0.23	Sharpe Ratio Rank(?)	77
5-Y Avg Annual Return	6.35%	5-Y Avg Annual Rtn Rank	78
Volatility	27.10%	Volatility Rank(?)	62
Expected EPS Growth	5.09%	EPS Growth Rank(?)	35
Market Cap (billions)	10.88	Size Rank	91
Trailing P/E Ratio	10.37	Trailing P/E Rank(?)	88
Forward P/E Ratio	9.87	Forward P/E Ratio Rank	80
PEG Ratio	2.04	PEG Ratio Rank	23
Price/Sales	1.13	Price/Sales Rank(?)	61
Market/Book	2.71	Market/Book Rank(?)	39
Beta	1.70	Beta Rank	17
Alpha	-0.00	Alpha Rank	59

DOWNLOAD A FREE SAMPLE OF OUR EASTMAN CHEMICAL (EMN) REPORT BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview