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April 21, 2015

ATTENTION Advanced Investors and Finance Professionals:
If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.

VALUATION WATCH: Overvalued stocks now make up 58.98% of our stocks assigned a valuation and 18.77% of those equities are calculated to be overvalued by 20% or more.  Thirteen sectors are calculated to be overvalued--with three at or near double digits.


--Bright Horizon?

Mobile Giant Verizon Loses Customers, But Beats Expectations for Q1

Verizon Communications (VZ), formed by the merger of Bell Atlantic and GTE, is one of the world's leading providers of high-growth communications services. Verizon companies are the largest providers of wireline and wireless communications in the United States. Verizon is also the world's largest provider of print and on-line directory information.

Some heavy hitters are reporting Q1 earnings this week and the latest big player to post is Verizon. The company posted lower earnings year-over-year, but beat analyst expectations. The company lost phone subscribers due to tough fights with competitors, but it added more than 500k new tablet subscribers. The company also added @212k FiOS Video and Internet subscribers--which was significantly more year-over-year.

In a company press release, Verizon Chairman and CEO Lowell McAdam noted that “Verizon is off to a strong start in 2015 with another quarter of profitable growth. We expanded our base of customers seeking a premium experience, and we grew revenues, earnings and cash flow during a quarter in which we also took significant steps to sharpen our strategic focus. We are confident in our ability to maintain momentum and continue to add value for customers and shareholders.”

Verizon shares have been mixed lately, with flat results over the past few months. We have included the stock in our VE Dividend Newsletter for the month and currently it is up @0.5%. ValuEngine continues its BUY recommendation on VERIZON COMMUNICATIONS for 2015-04-20. Based on the information we have gathered and our resulting research, we feel that VERIZON COMMUNICATIONS has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Volatility.

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 VERIZON HERE.

Below is today's data on VZ:


ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
 49.67 0.58%
3-Month
 49.39 0.02%
6-Month
 50.04 1.33%
1-Year
 52.82 6.97%
2-Year
 44.57 -9.75%
3-Year
 47.40 -4.00%

Valuation & Rankings
Valuation
11.65% undervalued
Valuation Rank(?)
 80
1-M Forecast Return
0.58%
1-M Forecast Return Rank
 88
12-M Return
2.92%
Momentum Rank(?)
 56
Sharpe Ratio
0.58
Sharpe Ratio Rank(?)
 79
5-Y Avg Annual Return
8.99%
5-Y Avg Annual Rtn Rank
 66
Volatility
15.46%
Volatility Rank(?)
 89
Expected EPS Growth
7.80%
EPS Growth Rank(?)
 39
Market Cap (billions)
204.91
Size Rank
 100
Trailing P/E Ratio
14.27
Trailing P/E Rank(?)
 81
Forward P/E Ratio
13.24
Forward P/E Ratio Rank
 74
PEG Ratio
1.83
PEG Ratio Rank
 28
Price/Sales
1.61
Price/Sales Rank(?)
 54
Market/Book
14.98
Market/Book Rank(?)
 9
Beta
0.30
Beta Rank
 81
Alpha
-0.01
Alpha Rank
 63

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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

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  VE View vs. S&P 500 Index Past Five Years
VE View
S&P 500
Ann Return
 24.78% 14.56%
Ann Volatility
 22.28% 12.35%
Sharpe Ratio
 1.11 1.18
Sortino Ratio
 1.88 1.53
Max Drawdown
 -34.94% -11.14%

  The ValuEngine View Newsletter is derived from the ValuEngine Aggressive and Diversified Growth BenchmarkPortfolio Strategies. These strategies are the product of ValuEngine's academic research team and combine cutting-edge financial analysis and portfolio construction techniques with real-world Wall St. know how. 

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The ValuEngine View Newsletter portfolio has 15 primary stock picks and five alternates and is re-balanced once each month. The ValuEngine View Newsletter is published near the middle of each calendar month. An equal amount of capital is allocated to each stock. The monthly returns are calculated from the closing prices on date of publication. The performance calculation does not include any transaction costs.

 

 

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued
41.02%
Stocks Overvalued
58.98%
Stocks Undervalued by 20%
13.11%
Stocks Overvalued by 20%
20.87%

ValuEngine Sector Overview

Sector
Change
MTD
YTD
Valuation
Last 12-MReturn
P/E Ratio
0.41%
-0.75%
8.64%
15.10% overvalued
0.10%
25.03
0.52%
2.25%
14.13%
14.10% overvalued
15.13%
33.52
0.38%
1.15%
2.80%
9.12% overvalued
10.07%
25.53
0.19%
0.77%
2.84%
7.76% overvalued
0.96%
22.54
0.68%
2.09%
5.95%
7.41% overvalued
3.11%
31.33
0.12%
10.11%
5.57%
7.37% overvalued
-32.23%
24.25
0.60%
2.41%
5.93%
7.09% overvalued
-0.04%
28.08
0.39%
1.50%
3.89%
6.25% overvalued
8.24%
24.53
0.76%
0.68%
6.96%
4.29% overvalued
4.46%
26.15
0.88%
3.72%
2.95%
3.07% overvalued
1.76%
24.60
0.39%
1.32%
3.10%
1.69% overvalued
3.97%
18.10
0.50%
2.83%
2.97%
1.31% overvalued
-5.60%
20.67
0.47%
1.95%
6.65%
1.11% overvalued
-1.44%
17.94
0.09%
1.60%
3.24%
1.54% undervalued
0.53%
24.78
0.80%
3.98%
3.87%
4.84% undervalued
5.07%
21.36
0.43%
2.66%
0.90%
5.10% undervalued
-19.99%
25.80

 

 

 

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