December 15, 2016

VALUATION WATCH: Overvalued stocks now make up 59.46% of our stocks assigned a valuation and 26.86% of those equities are calculated to be overvalued by 20% or more. Fourteen sectors are calculated to be overvalued.

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Indexing

--ValuEngine: IBM Remains Number One On The DOW

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.

Since we last presented the top Dow picks on November 17th, we see little turnover for our DOW top-ten list. IBM retains its top spot for the second-consecutive month. We only have three new stocks: Goldman Sachs, American Express, and Traveler's. Our newcomers replaced Johnson and Johnson, Intel, and Caterpillar.

Within our top-ten list, JPMorgan Chase and Verizon managed to move up a few spots. Cisco Systems, United Health, Wal-Mart, and Merck all declined a few positions.

Within the remaining eight unchanged components, Cisco, United Health, and JPMorgan Chase climbed up along with IBM. Johnson and Johnson, Intel, and Merck declined along with Verizon.

Also, be advised that once again we have no STRONG BUY-rated stocks in the DOW right now. Traveler's and Merck are currently rated as HOLDs by our models. The top-eight other DOW companies are BUY-rated stocks.

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 American Express (AXP):

American Express Company is primarily engaged in the business of providing travel related services, financial advisory services and international banking services throughout the world. American Express Travel Related Services Company, Inc. provides a variety of products and services, including, global network services, the American Express Card, the Optima Card and other consumer and corporate lending products, stored value products, and several others.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on American Express for 2016-12-14. Based on the information we have gathered and our resulting research, we feel that American Express 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 American Express (AXP) from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	74.45	0.52%
3-Month	74.52	0.61%
6-Month	74.29	0.29%
1-Year	78.67	6.21%
2-Year	75.34	1.71%
3-Year	67.69	-8.61%

Valuation & Rankings
Valuation	4.04% undervalued	Valuation Rank(?)	71
1-M Forecast Return	0.52%	1-M Forecast Return Rank	85
12-M Return	7.61%	Momentum Rank(?)	47
Sharpe Ratio	0.39	Sharpe Ratio Rank(?)	74
5-Y Avg Annual Return	8.10%	5-Y Avg Annual Rtn Rank	69
Volatility	20.70%	Volatility Rank(?)	70
Expected EPS Growth	-6.71%	EPS Growth Rank(?)	15
Market Cap (billions)	75.77	Size Rank	99
Trailing P/E Ratio	12.64	Trailing P/E Rank(?)	86
Forward P/E Ratio	13.55	Forward P/E Ratio Rank	68
PEG Ratio	n/a	PEG Ratio Rank	n/a
Price/Sales	2.22	Price/Sales Rank(?)	44
Market/Book	3.61	Market/Book Rank(?)	34
Beta	1.25	Beta Rank	29
Alpha	-0.06	Alpha Rank	35

DOWNLOAD A FREE SAMPLE OF OUR REPORT ON AMERICAN EXPRESS (AXP) BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview