July 7, 2016
VALUATION WATCH: Overvalued stocks now make up 34.75% of our stocks assigned a valuation and 12.13% of those equities are calculated to be overvalued by 20% or more. Three sectors are calculated to be overvalued.
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Indexing
--ValuEngine: Top-Three DOW Stocks Remain TRV,VZ, and INTC
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 stocks within the index. They are presented below according to their one-month forecast gain.
Once again, as we have seen for a while now, Traveler's and Verizon retain their top positions. Intel also held onto third spot. Traveler's Insurance remains the sole STRONG BUY here-- as it has been for months now. Since the last time we presented the top Dow picks, Johnson and Johnson and McDonald's have moved up in position while Home Depot and United Health Group have declined. Visa and Nike have fallen out of the top-ten and were replaced by Pfizer and General Electric.
Ticker |
Company Name |
Market Price |
Valuation |
Last 12-M Retrn |
1-M Forecast Retn |
1-Yr Forecast Retn |
P/E Ratio |
Sector Name |
June 16, 2016 |
TRV |
TRAVELERS COS |
118.76 |
3.92% |
20.03% |
1.05% |
12.55% |
11.47 |
Finance |
TRV |
VZ |
VERIZON COMM |
56.26 |
0.96% |
19.60% |
0.91% |
10.89% |
14.28 |
Utilities |
VZ |
INTC |
INTEL CORP |
32.97 |
0.36% |
9.75% |
0.77% |
9.23% |
13.46 |
Computer and Technology |
INTC |
CSCO |
CISCO SYSTEMS |
28.72 |
-4.98% |
5.51% |
0.69% |
8.29% |
13.61 |
Computer and Technology |
V |
JNJ |
JOHNSON & JOHNS |
122.64 |
8.22% |
24.89% |
0.56% |
6.72% |
19.53 |
Medical |
HD |
PFE |
PFIZER INC |
35.86 |
10.56% |
7.85% |
0.53% |
6.38% |
14.76 |
Medical |
JNJ |
MCD |
MCDONALDS CORP |
120.63 |
9.40% |
26.12% |
0.44% |
5.27% |
22.76 |
Retail-Wholesale |
CSCO |
HD |
HOME DEPOT |
131.57 |
-2.28% |
18.19% |
0.43% |
5.21% |
22.57 |
Retail-Wholesale |
UNH |
UNH |
UNITEDHEALTH GP |
142.38 |
7.10% |
16.55% |
0.39% |
4.73% |
21.09 |
Medical |
NKE |
GE |
GENL ELECTRIC |
31.74 |
21.49% |
20.64% |
0.39% |
4.66% |
21.16 |
Multi-Sector Conglomerates |
MCD |
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.
NOTE ALSO: GE is NOT a BUY or STRONG BUY-rated stock. It is a HOLD.
Below is today's data on VERIZON (VZ):
Verizon Communications, formed by the merger of Bell Atlantic and GTE, is one of the world's leading providers of high-growth communications services. Verizon companies are the largest providers of wireline and wireless communications in the United States. Verizon is also the world's largest provider of print and on-line directory information.
VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on VERIZON COMM for 2016-07-06. Based on the information we have gathered and our resulting research, we feel that VERIZON COMM has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.
You can download a free copy of detailed report on VERIZON from the link below.
ValuEngine Forecast |
| |
Target
Price* |
Expected
Return |
1-Month |
56.77 |
0.91% |
3-Month |
57.97 |
3.04% |
6-Month |
59.21 |
5.24% |
1-Year |
62.38 |
10.89% |
2-Year |
64.33 |
14.34% |
3-Year |
64.71 |
15.03% |
Valuation & Rankings |
Valuation |
0.96% overvalued |
|
 34 |
1-M Forecast Return |
0.91% |
1-M Forecast Return Rank |
96 |
12-M Return |
19.60% |
|
84 |
Sharpe Ratio |
0.52 |
|
85 |
5-Y Avg Annual Return |
8.11% |
5-Y Avg Annual Rtn Rank |
77 |
Volatility |
15.65% |
|
83 |
Expected EPS Growth |
0.25% |
|
23 |
Market Cap (billions) |
233.46 |
Size Rank |
100 |
Trailing P/E Ratio |
14.28 |
|
76 |
Forward P/E Ratio |
14.24 |
Forward P/E Ratio Rank |
55 |
PEG Ratio |
56.26 |
PEG Ratio Rank |
1 |
Price/Sales |
1.77 |
|
48 |
Market/Book |
11.61 |
|
11 |
Beta |
0.22 |
Beta Rank |
77 |
Alpha |
0.18 |
Alpha Rank |
85 |
DOWNLOAD A FREE SAMPLE OF OUR VERIZON (VZ) REPORT BY CLICKING HERE
ValuEngine Market Overview
Summary of VE Stock Universe |
Stocks Undervalued |
65.25% |
Stocks Overvalued |
34.75% |
Stocks Undervalued by 20% |
29.35% |
Stocks Overvalued by 20% |
12.13% |
ValuEngine Sector Overview
|
|
|
|
|
|
|
|
0.55% |
1.94% |
42.25% |
12.78% overvalued |
36.02% |
29.62 |
|
-0.09% |
0.51% |
11.17% |
5.44% overvalued |
9.64% |
23.45 |
|
0.25% |
-0.13% |
7.82% |
4.24% overvalued |
5.67% |
23.95 |
|
-0.10% |
-1.07% |
2.84% |
0.68% undervalued |
-9.83% |
18.21 |
|
0.13% |
-1.22% |
14.63% |
2.15% undervalued |
-26.42% |
23.75 |
|
0.18% |
-0.93% |
4.45% |
5.15% undervalued |
-7.25% |
21.25 |
|
0.18% |
-0.51% |
10.41% |
5.50% undervalued |
-10.70% |
22.63 |
|
0.28% |
-0.57% |
-5.12% |
6.47% undervalued |
-3.51% |
19.16 |
|
0.17% |
0.44% |
21.06% |
7.16% undervalued |
-1.97% |
20.71 |
|
0.17% |
-0.90% |
0.72% |
7.76% undervalued |
-4.51% |
15.81 |
|
-0.02% |
-1.39% |
4.04% |
8.62% undervalued |
-7.96% |
27.97 |
|
0.43% |
0.15% |
2.86% |
9.20% undervalued |
-10.07% |
21.02 |
|
0.41% |
-0.10% |
-3.44% |
13.29% undervalued |
-13.94% |
21.35 |
|
0.40% |
0.82% |
-3.22% |
13.40% undervalued |
-22.74% |
27.68 |
|
-0.46% |
-0.56% |
0.49% |
16.46% undervalued |
-27.36% |
13.36 |
|
0.01% |
-1.68% |
-6.83% |
22.96% undervalued |
-18.04% |
11.19 |
ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day.
Visit www.ValuEngine.com for more information
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