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November 21, 2014


The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to investing and the tools available from ValuEngine.com. In today's fast-moving and globalized financial markets, it is easy to get overloaded with information. The winners will adopt an objective, scientific, independent and unemotional approach to investing. If you are not yet a member of ValuEngine's stock analysis service, sign up now for a free trial at www.valuengine.com!

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Valuation WATCH: Overvalued stocks now make up 61.31% of our stocks assigned a valuation and 22.17% of those equities are calculated to be overvalued by 20% or more.  Fourteen sectors are calculated to be overvalued--with six sectors at or near double digits.

 

ValuEngine Index Overview

Index
Week Open
Friday PM
Change
% Change
YTD
DJIA
17,631.85
17,824.00
192.15
1.09%
5.88%
NASDAQ
4,678.44
4,722.52
44.08
0.94%
10.76%
RUSSELL 2000
1,171.86
1,178.53
6.67
0.57%
0.63%
S&P 500
2,038.29
2,063.89
25.6
1.26%
9.94%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued
38.69%
Stocks Overvalued
61.31%
Stocks Undervalued by 20%
14.51%
Stocks Overvalued by 20%
22.17%

 

ValuEngine Sector Overview

Sector
Change
MTD
YTD
Valuation
Last 12-MReturn
P/E Ratio
Consumer Staples
0.06%
-0.11%
3.11%
13.21% overvalued
6.45%
23.78
Aerospace
0.13%
-0.76%
-0.97%
12.84% overvalued
11.53%
21.01
Retail-Wholesale
1.62%
2.56%
-1.43%
11.14% overvalued
-1.80%
25.29
Multi-Sector Conglomerates
0.19%
-0.68%
-0.53%
10.97% overvalued
4.05%
17.60
Medical
0.43%
-0.60%
13.93%
10.18% overvalued
15.53%
30.45
Computer and Technology
0.58%
0.16%
3.28%
9.09% overvalued
4.56%
30.83
Consumer Discretionary
0.30%
-0.01%
-1.86%
8.93% overvalued
2.29%
27.69
Finance
0.26%
-0.53%
4.10%
7.90% overvalued
5.85%
17.42
Utilities
0.20%
-0.66%
7.56%
7.70% overvalued
8.65%
22.67
Transportation
0.63%
1.46%
10.75%
6.55% overvalued
11.38%
20.69
Business Services
0.42%
-0.40%
2.68%
4.78% overvalued
8.67%
24.71
Auto-Tires-Trucks
0.27%
0.04%
-1.89%
2.72% overvalued
2.44%
16.74
Industrial Products
0.63%
-1.85%
-3.20%
1.77% overvalued
0.59%
20.52
Construction
1.04%
1.77%
0.54%
0.99% overvalued
4.10%
25.99
Basic Materials
1.03%
2.38%
-1.83%
5.86% undervalued
-5.26%
24.66
Oils-Energy
1.33%
-2.91%
1.47%
5.88% undervalued
-10.26%
23.40

 

ValuEngine Newsletters Latest Results

VE Newsletter
Current Results
S&P 500
Last Month Total
S&P 500
Since Inception
S&P 500
1.29
0.36
-2.80
8.71
83.29
123.45
-0.48
5.02
2.32
-2.18
22.73
25.67
2.30
6.31
-5.93
-4.19
21.99
38.95
4.81
5.53
-6.26
-2.89
125.10
80.91

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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

General Motors Company (GM) is engaged in the designing, manufacturing and retailing of vehicles globally including passenger cars, crossover vehicles, and light trucks, sport utility vehicles, vans and other vehicles. Its business is organized into three geographically-based segments- General Motors North America (GMNA), General Motors International Operations (GMIO) and General Motors Europe (GME). General Motors Company is headquartered in Detroit, Michigan, the United States of America.

ValuEngine continues its BUY recommendation on GENERAL MOTORS for 2014-11-20. Based on the information we have gathered and our resulting research, we feel that GENERAL MOTORS has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Price Sales Ratio.

Below is today's data on GM:


ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
32.44 0.95%
3-Month
32.98 2.63%
6-Month
33.15 3.17%
1-Year
35.80 11.43%
2-Year
30.50 -5.06%
3-Year
34.85 8.47%

Valuation & Rankings
Valuation
21.56% undervalued Valuation Rank(?)
87
1-M Forecast Return
0.95% 1-M Forecast Return Rank
97
12-M Return
-14.75% Momentum Rank(?)
28
Sharpe Ratio
-0.07 Sharpe Ratio Rank(?)
39
5-Y Avg Annual Return
-2.18% 5-Y Avg Annual Rtn Rank
40
Volatility
30.36% Volatility Rank(?)
62
Expected EPS Growth
69.43% EPS Growth Rank(?)
79
Market Cap (billions)
51.62 Size Rank
98
Trailing P/E Ratio
12.49 Trailing P/E Rank(?)
87
Forward P/E Ratio
7.37 Forward P/E Ratio Rank
95
PEG Ratio
0.18 PEG Ratio Rank
79
Price/Sales
0.33 Price/Sales Rank(?)
90
Market/Book
1.40 Market/Book Rank(?)
67
Beta
1.70 Beta Rank
20
Alpha
-0.40 Alpha Rank
19

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

Read our Complete Detailed Valuation Report on GM HERE.


Sector Talk--Utilities

  Below, we present the latest data on Utilities stocks from our Institutional software package (VEI).    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. 

Please Click Here to Download a FREE Demo of ValuEngine's Professional VEI Software Package.

Top-Five Utilities Stocks--Short-Term Forecast Returns

Ticker
Name
Mkt Price
Valuation(%)
Last 12-M Retn(%)
SBS
SABESP -ADR
7.81
-24.3
-29.58
BT
BT GRP PLC-ADR
58.99
-8.78
-2.27
BIP
BROOKFIELD INFR
41.97
-1.46
4.53
SCG
SCANA CORP
56.31
1.79
20.01
TI
TELECOM ITA-ADR
11.21
N/A
24.42

Top-Five Utilities Stocks--Long-Term Forecast Returns

Ticker
Name
Mkt Price
Valuation(%)
Last 12-M Retn(%)
SBS
SABESP -ADR
7.81
-24.3
-29.58
BT
BT GRP PLC-ADR
58.99
-8.78
-2.27
BIP
BROOKFIELD INFR
41.97
-1.46
4.53
SCG
SCANA CORP
56.31
1.79
20.01
TI
TELECOM ITA-ADR
11.21
N/A
24.42

Top-Five Utilities Stocks--Composite Score

Ticker
Name
Mkt Price
Valuation(%)
Last 12-M Retn(%)
BT
BT GRP PLC-ADR
58.99
-8.78
-2.27
SCG
SCANA CORP
56.31
1.79
20.01
SBS
SABESP -ADR
7.81
-24.3
-29.58
BIP
BROOKFIELD INFR
41.97
-1.46
4.53
T
AT&T INC
35.28
-3.36
-0.34

Top-Five Utilities Stocks--Most Overvalued

Ticker
Name
Mkt Price
Valuation(%)
Last 12-M Retn(%)
TWTC
TW TELECOM INC
42.78
67.79
52.62
SRE
SEMPRA ENERGY
110.26
40.46
23.44
CNSL
CONSOL COMM IL
26.38
33.15
39.43
TEG
INTEGRYS ENERGY
73.13
30.15
29.89
FTR
FRONTIER COMMUN
7
28.89
44.63

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What's Hot--
-- VE View Finishes Strong Again

We have seen fears of Ebola, ISIS, and other issues fade “magically” with the latest election. We find that the environment for equities remains positive and economic data continues to improve. Clearly, much of the doom and gloom back in mid-October had more to do with political arguments and electoral concerns than raw data.

For October/November, the stock market returned to its winning ways and once more set or flirted with all-time highs. Our long-only ValuEngine View posted a gain of 4.81% vs the S&P500 gain of 5.53%. We trailed the index, but still consider this a great month as our newsletter shook off the recent market hiccup and powered up once again. The trailing 12 month gain of the VE View is 18.51% versus the S&P 500 return of 14.59%. The return since inception of the View is 125.1% versus the S&P's gain of 80.91%.

Here are the latest VE View Newsletter Portfolio Results:

Ticker  Company Name  Entry Price 10/22/14 Exit Price Change %Change
AER
AERCAP HOLDINGS
40.38
43.38
3
7.43
AFSI
AMTRUST FINANCIAL SERVICES
49.95
51.3
1.35
2.7
ATK
ALLIANT TECHSYSTEMS
130.06
113.49
-16.19
-12.48
AUO
AU OPTRONICS-ADR
4
4.69
0.69
17.25
BT
BT GROUP PLC-ADR
59.92
59.89
-0.03
-0.05
GMT
GATX CORP
58.32
63.97
5.65
9.69
GPRE
GREEN PLAINS
31.91
34.15
2.24
7.02
HII
HUNTINGTON INGALLS
96.84
109.08
12.24
12.64
LCI
LANNETT INC
44.96
46.84
1.88
4.18
LYB
LYONDELLBASEL-A
95.19
89.35
-5.84
-6.14
MU
MICRON TECHNOLOGY
31.19
32.96
1.77
5.67
ONNN
ON SEMICONDUCTOR CORP
7.79
8.46
0.67
8.6
PJC
PIPER JAFFRAY
48.78
56.22
7.44
15.25
SAFM
SANDERSON FARMS
80.89
89.11
8.22
10.16
WLK
WESTLAKE CHEMICAL
76.79
69.32
-7.47
-9.73
  VE VIEW PORTFOLIO  
4.81
GSPC S&P500
1941.28
2048.72
107.44
5.53

Want To Know More About Our VE View Newsletter?

The ValuEngine View Newsletter is the product of a sophisticated stock valuation model that was first developed by ValuEngine's academic research team. It utilizes a three factor approach: fundamental variables such as a company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's future 12-month EPS, and the 30-year Treasury yield are all used to create a more accurate reflection of a company's fair value. A total of eleven additional firm specific variables are also used. In addition, the portoflio uses top picks from our Forecast Model. In essence, the portfolio is constructed with the best picks from our main propiretary models

Each month you will receive an electronic copy of our newsletter highlighting 15 potential long positions along with five alternate picks. Our investment strategies focus on dozens of fundamental and technical factors for over 8000 individual stocks, synthesize the data, and then come up with a portfolio. Each newsletter portfolio focuses on maximum potential returns so there are no diversity requirements. Each portfolio pick includes critical ValuEngine valuation and forecast data. These 20 total picks represent the most up-to-date equity assessments of our proprietary models.

Please click HERE to subscribe. You may download a sample copy HERE. After your subscription is approved, you will immediately receive access to download the current issue of newsletter as well as the previous issues, which are all available as PDF files. Each month when the latest issue of the newsletter is released, we will send you an email, informing you to download it from the site. The newsletter is released near the middle of each month.

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