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Started week
Friday AM
Change
Change %
ytd
DJIA
18535.86
18504.15
-31.71
-0.17%
5.87%
NASDAQ
5231.46
5224.04
-7.42
-0.14%
4.09%
RUSSELL 2000
1236.6
1240
3.40
0.27%
9.17%
S&P 500
2181.58
2178.91
-2.67
-0.12%
6.29%
52.00%
Stocks Overvalued
48.00%
21.72%
15.58%
SECTOR OVERVIEW
Sector
Change
MTD
YTD
Valuation
Last 12-M
Return
P/E
Ratio
Aerospace
-0.24%
0.43%
-0.60%
3.09% overvalued
4.64%
19.31
Auto-Tires-Trucks
0.08%
1.59%
4.21%
8.43% undervalued
6.81%
16.38
Basic Materials
0.81%
-0.48%
46.80%
6.55% overvalued
63.57%
32.77
Business Services
0.09%
1.03%
14.88%
5.21% undervalued
4.19%
24.77
0.11%
2.78%
14.54%
2.35% overvalued
12.89%
29.5
Construction
-0.15%
0.80%
30.43%
0.76% undervalued
17.81%
21.32
Consumer Discretionary
-0.25%
1.55%
9.16%
0.94% undervalued
3.49%
24.09
Consumer Staples
0.10%
1.34%
12.88%
9.89% overvalued
16.23%
23.99
Finance
0.18%
1.97%
6.56%
0.39% overvalued
7.77%
16.2
Industrial Products
0.21%
3.09%
16.61%
7.18% overvalued
13.92%
23.16
Medical
-0.23%
-1.43%
0.05%
10.80% undervalued
-10.65%
27.27
Multi-Sector Conglomerates
-0.03%
2.34%
9.81%
13.55% overvalued
10.31%
20.87
Oils-Energy
0.34%
2.43%
16.08%
1.79% overvalued
1.06%
25.51
Retail-Wholesale
-0.65%
2.30%
2.62%
8.49% undervalued
1.12%
23.41
Transportation
-0.47%
0.34%
11.29%
5.15% undervalued
-10.28%
14.92
Utilities
0.53%
-2.29%
11.12%
3.41% overvalued
17.61%
22.2
Sector TalkConstruction
Below, we present the latest data on leading Construction Sector stocks from
our Professional Stock Analysis Service. We applied some basic liquidity criteria-share price greater than $3 and average daily volume in excess of 100k shares. We
have been following the sector closely of late because it has been correlated so
tightly to overall equity price moves.
Company Name
Market Price
Valuation
ACM
AECOM
32.18
-8.41%
24.34%
DY
DYCOM INDS
83.71
-15.77%
38.80%
THO
80.3
5.65%
54.96%
GRAM
GRANA Y MONTERO
8.15
N/A
102.74%
WGO
WINNEBAGO
23.93
-5.48%
25.55%
Company Name
Market Price
Valuation
ACM
AECOM
32.18
-8.41%
24.34%
DY
DYCOM INDS
83.71
-15.77%
38.80%
THO
80.3
5.65%
54.96%
GRAM
GRANA Y MONTERO
8.15
N/A
102.74%
WGO
WINNEBAGO
23.93
-5.48%
25.55%
Company Name
Market Price
Valuation
ACM
AECOM
32.18
-8.41%
24.34%
DY
DYCOM INDS
83.71
-15.77%
38.80%
FLR
FLUOR CORP-NEW
52.88
-3.65%
23.87%
PHM
21.57
-7.86%
14.07%
THO
80.3
5.65%
54.96%
Company Name
Market Price
Valuation
LAYN
LAYNE CHRISTENS
8.92
72.22%
35.36%
MTZ
MASTEC INC
30.36
44.48%
106.95%
TPC
TUTOR PERINI CP
23.39
34.38%
42.45%
UFPI
108.82
33.17%
84.13%
PRIM
PRIMORIS SERVCS
19.81
26.15%
21.83%
Find out what Wall Street Investment and Media Professionals already know,
ValuEngine offers sophisticated stock valuation and forecast research as well as a
variety of portfolio screening and creation tools.
ValuEngine Forecast
Target
Price*
Expected
Return
1-Month
42.89
0.08%
3-Month
42.79
-0.15%
6-Month
42.26
-1.37%
1-Year
43.28
1.01%
2-Year
41.64
-2.81%
3-Year
29.23
-31.80%
31.61% undervalued
Valuation Rank(?)
0.08%
12-M Return
-12.75%
Momentum Rank(?)
87
57
27
Sharpe Ratio
0.46
14.40%
Volatility
31.32%
Volatility Rank(?)
55
22.55%
61
16.07
Size Rank
80
86
93
9.26
93
7.56
92
PEG Ratio
0.41
Price/Sales
1.62
Price/Sales Rank(?)
53
Market/Book
1.56
Market/Book Rank(?)
61
63
Beta
1.26
Beta Rank
31
Alpha
-0.22
Alpha Rank
26
We now calculate that 48% of the stocks we can assign a valuation are
overvalued and 15.58% of those stocks are overvalued by 20% or more. These
numbers have increased-- slightly-- since we published our valuation study in July-when the overvaluation was at 46%.
The markets in the US and elsewhere certainly shook off that Brexit panic, with
several indices setting new records throughout this Summer. The word now is "melt up"
with many of the more bullish analysts arguing that as investors return from their
Summer vacations and buckle down again in Fall, we may find more money coming
into the market.
The optimists, as always, are facing off against those bears, who claim that this
is all a bubble and once the Fed raises rates again the party will be over. Of course,
those bears have been pushing that line throughout this historic rally. And if you had
followed their advice at pretty much any time over the past seven years, you would
have done the wrong thing for your long-term financial health.
We remain, as we have throughout the aftermath of the Bush recession,
convinced that the Fed should refrain from further action not to provide additional
aid to the stock market, but to help US workers. Their dual mandate demands that
inflation be controlled--it is--and "full employment" be achieved.
That second part of the equation is where we have controversy. The official
rate is currently @5%. But, we do not see the sort of wage increases and pressures one
would expect if the labor market was tight. We do not think that rates should be
increased until we see workers sharing in the prosperity.
While some Fed officials may desire to boost rates again before the end of
2016, we still believe that this will be difficult. We have a presidential election, a bad
time to be seen as "political." We also have continued questions about both global
and US economic growth. A trifecta of bad news has challenged the Fed--first in
China, the the EU with Brexit, and then due to continued questions about the US
overall GDP-growth rate.
Currently, futures contracts indicate that most investors remain doubtful that
the US central bank will raise rates in September or November. And, for the last
chance in December investor think the odds are still @50-50.
For now, our valuation figures still show a "normal" market, with valuations that
remain nowhere near the bargain level they indicated in the immediate aftermath of
the Brexit vote in June.
The chart below tracks the valuation metrics so far this Summer. It encompasses the
Brexit sell off. It shows levels in excess of 40%.
The chart below tracks the valuation metrics from August 2015. It shows levels in
excess of 40%.
This chart shows overall universe over valuation in excess of 40% vs the S&P 500 from
August 2013
This chart shows overall universe under and over valuation in excess of 40% vs the S&P
500 from March 2007*
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