December 21, 2018

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Editor's Note: We will be on a reduced publication schedule for the holidays and holiday travel. We will not publish a newsletter/bulletin on December 24th and 26th, or January 2nd. We will return to our normal publication schedule on January 7th.

This week, we provide top-five ranked VE data for our Utilities Sector stocks, we also take a look at Altria Group $MO and provide a free download link for our stock report on the company.

VALUATION WATCH: Overvalued stocks now make up 21.32% of our stocks assigned a valuation and 7.44% of those equities are calculated to be overvalued by 20% or more. There are no sectors calculated to be overvalued.

ValuEngine Index Overview

Index	Week Open	Thursday PM	Change	% Change	YTD
DJIA	23986.83	23011.26	-975.57	-4.07%	-6.91%
NASDAQ	6886.46	6549.02	-337.44	-4.90%	-5.13%
RUSSELL 2000	1410.77	1327.98	-82.79	-5.87%	-13.52%
S&P 500	2590.75	2480.87	-109.88	-4.24%	-7.21%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued	78.68%
Stocks Overvalued	21.32%
Stocks Undervalued by 20%	48.1%
Stocks Overvalued by 20%	7.44%

ValuEngine Sector Overview

Sector	Change	MTD	YTD	Valuation	Last 12-MReturn	P/E Ratio
Utilities	-1.16%	-7.11%	-2.25%	0.81% undervalued	-2.67%	19.66
Computer and Technology	-1.69%	-8.45%	-6.96%	8.23% undervalued	-1.06%	26.53
Aerospace	-1.88%	-5.88%	-8.79%	9.01% undervalued	-5.00%	23.78
Consumer Staples	-0.92%	-7.48%	-7.96%	10.21% undervalued	-6.76%	21.80
Retail-Wholesale	-1.29%	-10.75%	-12.53%	12.16% undervalued	-6.40%	19.69
Business Services	-0.94%	-9.38%	-6.61%	13.13% undervalued	-5.83%	20.03
Medical	-1.81%	-12.70%	-0.70%	13.56% undervalued	10.12%	25.68
Auto-Tires-Trucks	-1.67%	-10.08%	-23.09%	15.23% undervalued	-24.87%	10.32
Finance	-1.29%	-8.40%	-12.23%	16.73% undervalued	-10.27%	14.80
Consumer Discretionary	-1.02%	-7.31%	-13.37%	16.85% undervalued	-9.01%	22.42
Multi-Sector Conglomerates	-0.93%	-5.56%	-16.60%	17.45% undervalued	-15.67%	15.76
Transportation	-1.71%	-12.17%	-17.00%	20.98% undervalued	-16.37%	16.48
Industrial Products	-1.32%	-9.44%	-14.85%	21.63% undervalued	-12.77%	19.95
Basic Materials	-1.55%	-7.02%	-15.82%	24.24% undervalued	-21.56%	17.18
Construction	-0.86%	-10.32%	-20.37%	27.00% undervalued	-22.73%	17.43
Oils-Energy	-0.76%	-10.89%	-16.03%	39.94% undervalued	-18.54%	16.11

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Sector Talk--Utilities

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

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
SHEN	SHENANDOAH TELE	46	72.39%	34.50%
CWT	CALIF WATER SVC	47.19	43.48%	7.62%
EE	EL PASO ELEC CO	53.02	27.60%	-8.90%
VG	VONAGE HOLDINGS	9.09	26.66%	-11.40%
NWN	NORTHWEST NATRL	63.57	22.45%	1.71%

Top-Five Utilities Stocks--Momentum

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
AMRC	AMERESCO INC-A	14.69	16.95%	72.82%
NRG	NRG ENERGY INC	40.89	-10.94%	48.21%
AES	AES CORP	14.98	11.75%	36.80%
SHEN	SHENANDOAH TELE	46	72.39%	34.50%
VST	VISTRA ENERGY	23.36	N/A	31.31%

Top-Five Utilities Stocks--Composite Score

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
AES	AES CORP	14.98	11.75%	36.80%
VZ	VERIZON COMM	55.65	7.16%	4.51%
EXC	EXELON CORP	45.8	8.91%	13.14%
FE	FIRSTENERGY CP	37.63	15.53%	19.42%
ETR	ENTERGY CORP	87.09	8.18%	5.32%

Top-Five Utilities Stocks--Most Overvalued

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
SHEN	SHENANDOAH TELE	46	72.39%	34.50%
CWT	CALIF WATER SVC	47.19	43.48%	7.62%
EE	EL PASO ELEC CO	53.02	27.60%	-8.90%
VG	VONAGE HOLDINGS	9.09	26.66%	-11.40%
VVC	VECTREN CORP	71.74	26.58%	6.82%

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

Altria Group (MO) is the parent company of Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Ste. Michelle Wine Estates and Philip Morris Capital Corporation. Their tobacco company brand portfolios consist of successful and well-known brand names such as Marlboro, Copenhagen, Skoal and Black & Mild.

VALUENGINE RECOMMENDATION: ValuEngine continues its SELL recommendation on ALTRIA GROUP for 2018-12-19. Based on the information we have gathered and our resulting research, we feel that ALTRIA GROUP has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE Book Market Ratio and Momentum.

You can download a free copy of detailed report on Altria Group (MO) from the link below.

Read our Complete Rating and Forecast Report HERE.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	51.14	-0.50%
3-Month	50.97	-0.84%
6-Month	50.01	-2.70%
1-Year	48.33	-5.98%
2-Year	51.80	0.78%
3-Year	53.49	4.07%

Valuation & Rankings
Valuation	27.43% undervalued	Valuation Rank(?)	65
1-M Forecast Return	-0.50%	1-M Forecast Return Rank	17
12-M Return	-30.45%	Momentum Rank(?)	20
Sharpe Ratio	0.40	Sharpe Ratio Rank(?)	81
5-Y Avg Annual Return	7.88%	5-Y Avg Annual Rtn Rank	77
Volatility	19.81%	Volatility Rank(?)	69
Expected EPS Growth	8.05%	EPS Growth Rank(?)	37
Market Cap (billions)	101.59	Size Rank	100
Trailing P/E Ratio	12.93	Trailing P/E Rank(?)	71
Forward P/E Ratio	11.96	Forward P/E Ratio Rank	54
PEG Ratio	1.61	PEG Ratio Rank	25
Price/Sales	4.01	Price/Sales Rank(?)	23
Market/Book	6.56	Market/Book Rank(?)	19
Beta	0.40	Beta Rank	67
Alpha	-0.23	Alpha Rank	28

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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Steve Hach
Senior Editor
ValuEngine.com