September 6, 2016

VALUATION WATCH: Overvalued stocks now make up 48.19% of our stocks assigned a valuation and 15.49% of those equities are calculated to be overvalued by 20% or more. Nine sectors are calculated to be overvalued.

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UPGRADES

--State National Companies (SNC) Leads ValuEngine Upgrade 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 combine all of the equities with a valuation calculation to track market valuation figures and use them as a metric for making calls about the overall state of the market.  Two factors can lower these figures-- a market pullback, or a significant rise in EPS estimates.

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.

So, for today's short-week Labor Day edition of our upgrade list, we used our website's advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented by one-month forecast return. State National Companies (SNC) is our top-rated upgrade this week.

Below is today's data on State National Companies (SNC):

State National Companies, Inc. is a specialty provider of property and casualty insurance. It operates in two segments, Program Services and Lender Services. Its Program Services segment engages in offering issuing carrier capacity for insurance and reinsurance companies. The Company's Lender Services segment provides collateral protection insurance, or CPI, to its credit union, bank and specialty finance clients. State National Companies, Inc. is headquartered in Bedford, Texas.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for State National Companies on 2016-09-02. Based on the information we have gathered and our resulting research, we feel that State National Companies has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Momentum.

You can download a free copy of detailed report on State National Companies from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	10.52	1.10%
3-Month	10.51	1.01%
6-Month	10.43	0.22%
1-Year	11.78	13.19%
2-Year	9.40	-9.65%
3-Year	6.80	-34.67%

Valuation & Rankings
Valuation	29.36% undervalued	Valuation Rank(?)	86
1-M Forecast Return	1.10%	1-M Forecast Return Rank	99
12-M Return	15.03%	Momentum Rank(?)	67
Sharpe Ratio	-0.28	Sharpe Ratio Rank(?)	31
5-Y Avg Annual Return	-8.49%	5-Y Avg Annual Rtn Rank	36
Volatility	29.87%	Volatility Rank(?)	57
Expected EPS Growth	-5.40%	EPS Growth Rank(?)	17
Market Cap (billions)	0.46	Size Rank	55
Trailing P/E Ratio	9.91	Trailing P/E Rank(?)	91
Forward P/E Ratio	10.48	Forward P/E Ratio Rank	81
PEG Ratio	n/a	PEG Ratio Rank	n/a
Price/Sales	2.24	Price/Sales Rank(?)	42
Market/Book	1.68	Market/Book Rank(?)	58
Beta	0.71	Beta Rank	59
Alpha	-0.00	Alpha Rank	55

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