August 18, 2016

VALUATION WATCH: Overvalued stocks now make up 47.36% of our stocks assigned a valuation and 15.17% of those equities are calculated to be overvalued by 20% or more. Eight sectors are calculated to be overvalued.

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Indexing

--ValuEngine: Intel Takes Lead On DOW Top-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 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.

As has been the case for a while now, we see very little turnover for our top-ten list. We have a 20% turnover-two new members--since the last time we presented the top Dow picks. United Technologies and DuPont are new--having replaced McDonald's and Pfizer --in this edition of the top ten. Meanwhile, Intel has been de-throned by previous second-place pick Verizon. We also see that United Health has moved up a few spots. In addition to Intel, Cisco and Home Depot have also declined a few positions and now are barely hanging on to the last two spots in our top-ten DOW stock list. Also, be advised that none of these stocks are currently rated higher than BUY--there are no STRONG BUY picks in this edition of our DOW top-ten, and DD, HD, and UTX are rated HOLD.

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 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 2016-08-17. 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	53.57	0.75%
3-Month	54.27	2.07%
6-Month	54.64	2.76%
1-Year	57.95	8.99%
2-Year	56.54	6.34%
3-Year	53.91	1.39%

Valuation & Rankings
Valuation	2.70% undervalued	Valuation Rank(?)	53
1-M Forecast Return	0.75%	1-M Forecast Return Rank	93
12-M Return	11.89%	Momentum Rank(?)	73
Sharpe Ratio	0.59	Sharpe Ratio Rank(?)	85
5-Y Avg Annual Return	9.02%	5-Y Avg Annual Rtn Rank	75
Volatility	15.42%	Volatility Rank(?)	84
Expected EPS Growth	1.87%	EPS Growth Rank(?)	27
Market Cap (billions)	220.64	Size Rank	100
Trailing P/E Ratio	13.58	Trailing P/E Rank(?)	81
Forward P/E Ratio	13.33	Forward P/E Ratio Rank	66
PEG Ratio	7.25	PEG Ratio Rank	5
Price/Sales	1.70	Price/Sales Rank(?)	51
Market/Book	10.64	Market/Book Rank(?)	13
Beta	0.19	Beta Rank	78
Alpha	0.16	Alpha Rank	81

DOWNLOAD A FREE SAMPLE OF OUR REPORT ON VERIZON (VZ) BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview