November 16, 2018

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This week, we provide top-five ranked VE data for our Business Services Sector stocks, take a look at Red Hat $RHT, and provide a free download link for our stock report on the company.

VALUATION WATCH: Overvalued stocks now make up 39.01% of our stocks assigned a valuation and 15.03% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued.

ValuEngine Index Overview

Index	Week Open	Friday AM	Change	% Change	YTD
DJIA	25959.33	25303.49	-655.84	-2.53%	2.36%
NASDAQ	7364.05	7212.46	-151.59	-2.06%	4.48%
RUSSELL 2000	1549.01	1518.69	-30.32	-1.96%	-1.10%
S&P 500	2773.93	2726	-47.93	-1.73%	1.96%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued	60.99%
Stocks Overvalued	39.01%
Stocks Undervalued by 20%	26.73%
Stocks Overvalued by 20%	15.03%

ValuEngine Sector Overview

Sector	Change	MTD	YTD	Valuation	Last 12-MReturn	P/E Ratio
Aerospace	0.43%	0.79%	-1.27%	5.61% overvalued	9.67%	23.84
Utilities	0.46%	0.95%	2.72%	5.46% overvalued	-2.45%	20.00
Consumer Staples	0.25%	1.02%	-1.05%	5.26% overvalued	3.75%	24.01
Computer and Technology	1.40%	1.16%	0.29%	4.87% overvalued	9.35%	29.26
Medical	0.95%	-0.50%	10.77%	2.12% overvalued	24.60%	28.18
Business Services	0.63%	0.11%	3.96%	1.58% overvalued	6.53%	21.76
Retail-Wholesale	-0.47%	1.23%	-3.32%	1.53% overvalued	16.54%	22.75
Finance	0.35%	0.66%	-4.38%	4.06% undervalued	-1.75%	16.15
Consumer Discretionary	0.02%	-0.29%	-6.13%	4.26% undervalued	8.32%	23.46
Industrial Products	0.72%	2.81%	-6.60%	4.44% undervalued	1.27%	22.12
Transportation	0.60%	-0.26%	-5.34%	4.44% undervalued	2.43%	17.87
Multi-Sector Conglomerates	0.50%	0.94%	-11.76%	4.87% undervalued	-7.94%	16.90
Auto-Tires-Trucks	-0.21%	1.14%	-14.04%	9.31% undervalued	-16.56%	11.12
Basic Materials	0.46%	-1.04%	-8.60%	11.31% undervalued	-11.69%	18.54
Construction	-1.58%	-0.33%	-10.95%	16.90% undervalued	-10.60%	18.59
Oils-Energy	0.52%	-3.45%	-4.54%	25.91% undervalued	-1.64%	19.45

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Sector Talk--Business Services

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

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
JTPY	JETPAY CORP	5.03	116.06%	151.50%
RCM	R1 RCM INC	8.79	119.79%	133.78%
TISI	TEAM INC	18.01	37.33%	38.01%
ROL	ROLLINS INC	60.89	42.48%	35.52%
SPSC	SPS COMMERCE	92.02	18.51%	100.30%

Top-Five Business Services Stocks--Momentum

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
JTPY	JETPAY CORP	5.03	116.06%	151.50%
RCM	R1 RCM INC	8.79	119.79%	133.78%
EVTC	EVERTEC INC	28.32	47.29%	117.85%
CATM	CARDTRONICS PLC	33.93	17.76%	108.67%
SPSC	SPS COMMERCE	92.02	18.51%	100.30%

Top-Five Business Services Stocks--Composite Score

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
IPG	INTERPUBLIC GRP	23.91	2.51%	29.56%
FCN	FTI CONSULTING	67.95	-3.22%	67.08%
MA	MASTERCARD INC	200.71	8.45%	35.31%
WEX	WEX INC	161.43	-7.96%	34.78%
CPRT	COPART INC	50.8	-5.43%	41.31%

Top-Five Business Services Stocks--Most Overvalued

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
RCM	R1 RCM INC	8.79	119.79%	133.78%
JTPY	JETPAY CORP	5.03	116.06%	151.50%
EVTC	EVERTEC INC	28.32	47.29%	117.85%
ROL	ROLLINS INC	60.89	42.48%	35.52%
TRI	THOMSON REUTERS	49	38.03%	11.46%

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

Red Hat (RHT) is the world's leading provider of open source software solutions, using a community-powered approach to provide reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT.

VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on Red Hat for 2018-11-15. Based on the information we have gathered and our resulting research, we feel that Red Hat has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Sharpe Ratio and Company Size.

You can download a free copy of detailed report on Red Hat (RHT) from the link below.

Read our Complete Rating and Forecast Report HERE.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	175.68	1.07%
3-Month	178.75	2.83%
6-Month	184.31	6.04%
1-Year	196.13	12.84%
2-Year	204.22	17.49%
3-Year	204.67	17.75%

Valuation & Rankings
Valuation	37.76% overvalued	Valuation Rank(?)	8
1-M Forecast Return	1.07%	1-M Forecast Return Rank	98
12-M Return	40.38%	Momentum Rank(?)	92
Sharpe Ratio	1.01	Sharpe Ratio Rank(?)	97
5-Y Avg Annual Return	27.56%	5-Y Avg Annual Rtn Rank	96
Volatility	27.42%	Volatility Rank(?)	54
Expected EPS Growth	14.06%	EPS Growth Rank(?)	49
Market Cap (billions)	32.65	Size Rank	96
Trailing P/E Ratio	69.81	Trailing P/E Rank(?)	34
Forward P/E Ratio	61.20	Forward P/E Ratio Rank	5
PEG Ratio	4.97	PEG Ratio Rank	7
Price/Sales	10.34	Price/Sales Rank(?)	11
Market/Book	25.31	Market/Book Rank(?)	6
Beta	0.74	Beta Rank	52
Alpha	0.31	Alpha Rank	91

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 (321) 325-0519 or support@valuengine.com
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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