May 18, 2018

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This week, we provide top-five ranked VE data for our Construction Sector stocks. We take a look at our latest data on Caterpllar $CAT and provide a free download link for our stock report on the company.

VALUATION WATCH: Overvalued stocks now make up 55.53% of our stocks assigned a valuation and 22.33% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.

ValuEngine Index Overview

Index	Week Open	Friday PM	Change	% Change	YTD
DJIA	24879.37	24748.92	-130.45	-0.52%	0.12%
NASDAQ	7429.45	7379.64	-49.81	-0.67%	6.90%
RUSSELL 2000	1607.39	1627.05	19.66	1.22%	5.96%
S&P 500	2738.47	2718.64	-19.83	-0.72%	1.68%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued	44.47%
Stocks Overvalued	55.53%
Stocks Undervalued by 20%	16.19%
Stocks Overvalued by 20%	22.33%

ValuEngine Sector Overview

Sector	Change	MTD	YTD	Valuation	Last 12-MReturn	P/E Ratio
Aerospace	-0.03%	-1.14%	3.37%	24.55% overvalued	17.27%	25.94
Computer and Technology	0.72%	4.07%	4.34%	17.57% overvalued	22.67%	31.72
Medical	0.35%	4.48%	8.15%	14.10% overvalued	37.61%	28.55
Business Services	0.30%	2.09%	4.33%	8.61% overvalued	16.68%	25.02
Consumer Discretionary	0.65%	2.54%	-0.26%	7.73% overvalued	18.31%	26.84
Retail-Wholesale	1.19%	1.82%	-1.24%	6.98% overvalued	14.87%	24.16
Multi-Sector Conglomerates	0.43%	0.35%	-3.56%	5.30% overvalued	9.39%	23.95
Consumer Staples	0.61%	0.86%	-3.32%	4.42% overvalued	10.51%	25.89
Finance	0.26%	1.49%	0.67%	3.41% overvalued	9.44%	17.98
Industrial Products	0.40%	1.82%	-0.91%	2.68% overvalued	15.11%	24.44
Utilities	0.02%	0.51%	-5.29%	1.59% overvalued	0.17%	21.43
Transportation	0.50%	3.80%	-0.09%	1.13% overvalued	21.67%	20.13
Basic Materials	0.82%	3.29%	4.63%	0.65% undervalued	5.84%	22.72
Construction	0.59%	0.82%	0.84%	2.94% undervalued	18.20%	22.49
Auto-Tires-Trucks	0.47%	3.10%	-5.03%	4.88% undervalued	10.96%	13.22
Oils-Energy	0.67%	4.49%	7.98%	6.55% undervalued	11.54%	27.10

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Sector Talk--Construction

Below, we present the latest data on Construction 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 Construction Stocks--Short-Term Forecast Returns

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
USG	USG CORP	41.59	35.90%	44.96%
PGTI	PGT INC	19.45	24.35%	66.24%
TREX	TREX COMPANY	114.29	18.92%	80.21%
TPH	TRI POINTE GRP	16.85	16.56%	36.66%
LAYN	LAYNE CHRISTENS	15.86	17.84%	111.47%

Top-Five Construction Stocks--Momentum

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
LAYN	LAYNE CHRISTENS	15.86	17.84%	111.47%
TREX	TREX COMPANY	114.29	18.92%	80.21%
PGTI	PGT INC	19.45	24.35%	66.24%
URI	UTD RENTALS INC	170.36	-6.70%	62.09%
BLD	TOPBUILD CORP	80.33	6.72%	61.08%

Top-Five Construction Stocks--Composite Score

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
URI	UTD RENTALS INC	170.36	-6.70%	62.09%
PHM	PULTE GROUP ONC	29.58	-2.04%	31.23%
DHI	D R HORTON INC	41.39	-13.11%	25.96%
WGO	WINNEBAGO	37.35	-14.08%	43.10%
TPH	TRI POINTE GRP	16.85	16.56%	36.66%

Top-Five Construction Stocks--Most Overvalued

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
GLDD	GREAT LAKES DRG	4.9	77.44%	N/A
USG	USG CORP	41.59	35.90%	44.96%
PGTI	PGT INC	19.45	24.35%	66.24%
RYN	RAYONIER INC	37.42	23.92%	35.73%
AEGN	AEGION CORP	25.41	21.46%	30.91%

Free Download for Readers

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we are offering a FREE DOWNLOAD of one of our Stock Reports

Caterpillar Inc. (CAT) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar provides the solutions you need to build a successful construction contracting business. Cat Connect makes smart use of technology and services to improve your operational efficiency. Working with your Cat dealer, you can find the right combination of Cat Connect technologies and services for your sites. Cat Financial provides retail and wholesale financing solutions to Cat customers and dealers for the complete line of Cat machinery and engines, Solar gas turbines, other related equipment and marine vessels. As a captive finance company, no other financial institution knows Cat customers and dealers better than Cat Financial. They offer quality service throughout the life cycle of equipment including purchase, protect, manage and resell.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on CATERPILLAR INC for 2018-05-17. Based on the information we have gathered and our resulting research, we feel that CATERPILLAR INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Momentum.

You can download a free copy of detailed report on Caterpillar Inc. (CAT) from the link below.

Read our Complete Rating and Forecast Report HERE.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	154.55	0.56%
3-Month	152.47	-0.79%
6-Month	155.50	1.18%
1-Year	164.03	6.73%
2-Year	158.88	3.38%
3-Year	154.77	0.70%

Valuation & Rankings
Valuation	3.81% overvalued	Valuation Rank(?)	48
1-M Forecast Return	0.56%	1-M Forecast Return Rank	88
12-M Return	53.48%	Momentum Rank(?)	89
Sharpe Ratio	0.48	Sharpe Ratio Rank(?)	77
5-Y Avg Annual Return	10.67%	5-Y Avg Annual Rtn Rank	75
Volatility	22.22%	Volatility Rank(?)	64
Expected EPS Growth	24.14%	EPS Growth Rank(?)	56
Market Cap (billions)	93.04	Size Rank	99
Trailing P/E Ratio	17.47	Trailing P/E Rank(?)	70
Forward P/E Ratio	14.07	Forward P/E Ratio Rank	60
PEG Ratio	0.72	PEG Ratio Rank	48
Price/Sales	1.92	Price/Sales Rank(?)	51
Market/Book	13.82	Market/Book Rank(?)	12
Beta	1.31	Beta Rank	23
Alpha	0.21	Alpha Rank	84

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.
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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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Steve Hach
Senior Editor
ValuEngine.com