October 27, 2017

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This week, we provide top-five ranked VE data for our Basic Materials stocks. We take a look at our latest data on JCPenney JCP$ and provide a free download link for our stock report on the company.

VALUATION WATCH: Overvalued stocks now make up 61.31% of our stocks assigned a valuation and 28.17% of those equities are calculated to be overvalued by 20% or more. Thirteen sectors are calculated to be overvalued. Because overvaluation is now calculated to be above 60%, we have re-instituted our valuation watch.

ValuEngine Index Overview

Index	Week Open	Friday AM	Change	% Change	YTD
DJIA	23348.95	23388.68	39.73	0.17%	18.35%
NASDAQ	6641.57	6647.22	5.65	0.09%	23.48%
RUSSELL 2000	1509.67	1495.99	-13.68	-0.91%	10.23%
S&P 500	2578.08	2570.31	-7.77	-0.30%	14.81%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued	38.69%
Stocks Overvalued	61.31%
Stocks Undervalued by 20%	19.42%
Stocks Overvalued by 20%	28.17%

ValuEngine Sector Overview

Sector	Change	MTD	YTD	Valuation	Last 12-MReturn	P/E Ratio
Aerospace	-0.29%	1.92%	16.81%	30.44% overvalued	37.73%	23.23
Computer and Technology	0.05%	2.17%	26.82%	16.76% overvalued	20.97%	33.27
Industrial Products	0.06%	1.53%	16.02%	16.20% overvalued	27.90%	25.74
Multi-Sector Conglomerates	0.12%	2.35%	14.26%	14.68% overvalued	15.56%	20.76
Auto-Tires-Trucks	0.27%	1.29%	26.81%	12.88% overvalued	35.85%	15.20
Construction	0.62%	1.30%	22.90%	12.00% overvalued	29.39%	23.75
Utilities	0.02%	1.00%	22.97%	11.60% overvalued	15.37%	22.76
Finance	0.12%	1.22%	11.13%	10.86% overvalued	16.98%	19.01
Consumer Discretionary	-0.10%	-0.24%	14.23%	8.30% overvalued	20.22%	24.92
Business Services	0.32%	0.63%	10.43%	8.03% overvalued	9.54%	26.51
Transportation	0.41%	0.91%	18.89%	4.59% overvalued	23.98%	22.70
Consumer Staples	0.43%	0.25%	5.87%	4.34% overvalued	8.46%	25.79
Basic Materials	-0.89%	1.42%	17.18%	1.75% overvalued	11.24%	26.57
Medical	-0.92%	-3.27%	17.82%	0.52% undervalued	13.29%	28.75
Retail-Wholesale	0.21%	-1.02%	2.08%	2.05% undervalued	7.85%	23.39
Oils-Energy	0.19%	-3.88%	-0.02%	16.42% undervalued	-8.07%	28.54

Sector Talk--Basic Materials

Below, we present the latest data on Basic Materials stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category. We applied some basic liquidity criteria--share price greater than $3 and average daily volume in excess of 100k shares.

Top-Five Basic Materials Stocks--Short-Term Forecast Returns

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
DQ	DAQO NEW ENERGY	35.62	40.94%	51.64%
VALE	VALE SA	9.88	-6.62%	42.98%
TX	TERNIUM SA-ADR	32.35	9.10%	34.79%
TSE	TRINSEO SA	71.55	10.20%	32.99%
MT	ARCELOR MITTAL	29.4	-14.37%	45.60%

Top-Five Basic Materials Stocks--Momentum

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
KRO	KRONOS WORLDWD	26.83	68.05%	241.35%
IPI	INTREPID POTASH	3.8	-34.02%	239.29%
CC	CHEMOURS COMPNY	56.61	N/A	233.98%
TROX	TRONOX LTD	27.14	N/A	221.18%
ASIX	ADVANSIX INC	44.86	N/A	172.71%

Top-Five Basic Materials Stocks--Composite Score

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
MT	ARCELOR MITTAL	29.4	-14.37%	45.60%
VALE	VALE SA	9.88	-6.62%	42.98%
FCX	FREEPT MC COP-B	14.69	-15.83%	38.85%
TX	TERNIUM SA-ADR	32.35	9.10%	34.79%
PKX	POSCO-ADR	72.69	5.51%	35.44%

Top-Five Basic Materials Stocks--Most Overvalued

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
SQM	SOC QUIMICA MIN	60.11	99.15%	105.36%
ALB	ALBEMARLE CORP	139.04	82.63%	71.46%
HUN	HUNTSMAN CORP	29.8	74.16%	79.95%
KRO	KRONOS WORLDWD	26.83	68.05%	241.35%
KRA	KRATON CORP	48.57	67.35%	54.24%

Free Download for Readers

As a bonus to our Free Weekly Newsletter subscribers,
we are offering a FREE DOWNLOAD of one of our Stock Reports

JCPenney (JCP) is one of America's leading retailers, operating department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands.

VALUENGINE RECOMMENDATION: ValuEngine continues its HOLD recommendation on JCPenney INC for 2017-10-26. Based on the information we have gathered and our resulting research, we feel that JCPenney INC has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Price Sales Ratio but UNATTRACTIVE Momentum.

You can download a free copy of detailed report on JCPenney (JCP) from the link below.

Read our Complete Rating and Forecast Report HERE.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	3.68	0.42%
3-Month	3.63	-0.80%
6-Month	3.46	-5.39%
1-Year	3.84	5.03%
2-Year	3.47	-5.24%
3-Year	3.77	2.96%

Valuation & Rankings
Valuation	66.36% undervalued	Valuation Rank(?)	97
1-M Forecast Return	0.42%	1-M Forecast Return Rank	81
12-M Return	-56.48%	Momentum Rank(?)	6
Sharpe Ratio	-0.70	Sharpe Ratio Rank(?)	11
5-Y Avg Annual Return	-37.05%	5-Y Avg Annual Rtn Rank	15
Volatility	53.10%	Volatility Rank(?)	31
Expected EPS Growth	12.70%	EPS Growth Rank(?)	44
Market Cap (billions)	1.12	Size Rank	63
Trailing P/E Ratio	8.71	Trailing P/E Rank(?)	95
Forward P/E Ratio	7.73	Forward P/E Ratio Rank	92
PEG Ratio	0.69	PEG Ratio Rank	55
Price/Sales	0.09	Price/Sales Rank(?)	98
Market/Book	0.97	Market/Book Rank(?)	81
Beta	0.58	Beta Rank	60
Alpha	-0.97	Alpha Rank	3

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
Contact ValuEngine at (800) 381-5576 or support@valuengine.com
Visit www.ValuEngine.com for more information

ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine's award-winning stock research.
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Visit www.ValuEngineCapital.com for more information

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