July 14, 2016

VALUATION WATCH: Overvalued stocks now make up 43.35% of our stocks assigned a valuation and 14.21% of those equities are calculated to be overvalued by 20% or more. Five sectors are calculated to be overvalued.

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High Fashion

--Michael Kors Takes Lead On ValuEngine Top S&P500 Stock List

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.

In our last update, Michael Kors (KORS) debuted in the number two position and has now climbed into the first spot according to our models. Southwest Airlines (LUV) and Traveler's (TRV) declined one spot each as Tyson Foods (TSN) is now in third place. Chubb Limited (CB) retains its spot in the middle of our top-ten list. AFLAC (AFL) and Verizon (VZ) also managed to moved up a few spaces--with DR Horton (DHI) and KLA-Tencor (KLAC) declning and just managing to hang on--barely. Applied Materials (AMAT) returns to our top ten as Global Payments (GPN) has fallen off the charts. That last move is our only overall change to the list-- just one new stock this time.

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 our SP500 leader, Michael Kors (KORS)

Michael Kors is a global accessories, footwear and apparel company. They offer two primary collections: the Michael Kors luxury collection and the MICHAEL Michael Kors accessible luxury collection. They also offer select footwear and outerwear through their KORS Michael Kors accessible luxury collection. They operate their business in three segments-retail, wholesale and licensing-and have a global distribution network focused on company-operated retail stores, leading department stores, specialty stores and select licensing partners.

VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on MICHAEL KORS for 2016-07-13. Based on the information we have gathered and our resulting research, we feel that MICHAEL KORS 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 KORS from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	52.37	1.26%
3-Month	52.25	1.03%
6-Month	51.86	0.27%
1-Year	59.57	15.18%
2-Year	45.79	-11.46%
3-Year	29.89	-42.20%

Valuation & Rankings
Valuation	33.43% undervalued	Valuation Rank(?)	86
1-M Forecast Return	1.26%	1-M Forecast Return Rank	100
12-M Return	17.39%	Momentum Rank(?)	81
Sharpe Ratio	0.34	Sharpe Ratio Rank(?)	78
5-Y Avg Annual Return	13.26%	5-Y Avg Annual Rtn Rank	86
Volatility	39.00%	Volatility Rank(?)	47
Expected EPS Growth	8.80%	EPS Growth Rank(?)	39
Market Cap (billions)	10.65	Size Rank	91
Trailing P/E Ratio	11.97	Trailing P/E Rank(?)	85
Forward P/E Ratio	11.00	Forward P/E Ratio Rank	77
PEG Ratio	1.36	PEG Ratio Rank	34
Price/Sales	2.26	Price/Sales Rank(?)	41
Market/Book	5.58	Market/Book Rank(?)	22
Beta	0.82	Beta Rank	54
Alpha	0.15	Alpha Rank	83

DOWNLOAD A FREE SAMPLE OF OUR MICHAEL KORS (KORS) REPORT BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview