June 9, 2016

VALUATION WATCH: Overvalued stocks now make up 48.64% of our stocks assigned a valuation and 16.55% of those equities are calculated to be overvalued by 20% or more. Eight sectors are calculated to be overvalued.

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Indexing

--Applied Materials Leads ValuEngine Top NASDAQ Stocks

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 NASDAQ 100. The companies listed below represent the top-ten BUY and STRONG BUY stocks within the index. They are presented below according to their one-month forecast target prices.

We once again see a 40% turnover this time around with newcomers Amgen, Intel, Cisco Systems, and --our new leader--Applied Materials. Our last leader, Broadcom, has declined to third place with Citrix and Facebook also declining two positions each this time around. NetEase,LAM Research, and CA Inc moved up the chart. Google, Comcast, Activision, and Nvidia have left the top-ten list since the last time we presented the top NASDAQ picks in mid-March.Once again, the list is dominated by tech companies.

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 Applied Materials (AMAT):

Applied Materials develops, manufactures, markets and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. Customers for these products include semiconductor wafer manufacturers and semiconductor integrated circuit manufacturers, who either use the Ics they manufacture in their own products or sell them to other companies. These ICs are the key components in most advanced electronic products such as computers, telecommunications devices, automotive engine management systems and electronic games.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on APPLD MATLS INC for 2016-06-08. Based on the information we have gathered and our resulting research, we feel that APPLD MATLS INC 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 AMAT from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	24.46	0.93%
3-Month	24.35	0.50%
6-Month	24.00	-0.96%
1-Year	26.94	11.16%
2-Year	20.60	-14.96%
3-Year	15.87	-34.50%

Valuation & Rankings
Valuation	15.42% undervalued	Valuation Rank(?)	74
1-M Forecast Return	0.93%	1-M Forecast Return Rank	97
12-M Return	21.94%	Momentum Rank(?)	86
Sharpe Ratio	0.39	Sharpe Ratio Rank(?)	80
5-Y Avg Annual Return	11.44%	5-Y Avg Annual Rtn Rank	84
Volatility	29.44%	Volatility Rank(?)	59
Expected EPS Growth	44.74%	EPS Growth Rank(?)	75
Market Cap (billions)	29.77	Size Rank	97
Trailing P/E Ratio	19.13	Trailing P/E Rank(?)	63
Forward P/E Ratio	13.22	Forward P/E Ratio Rank	66
PEG Ratio	0.43	PEG Ratio Rank	64
Price/Sales	3.11	Price/Sales Rank(?)	31
Market/Book	11.48	Market/Book Rank(?)	11
Beta	1.77	Beta Rank	15
Alpha	0.20	Alpha Rank	88

DOWNLOAD A FREE SAMPLE OF OUR APPLIED MATERIALS (AMAT) REPORT BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview