May 6, 2015

VALUATION WATCH: Overvalued stocks now make up 59.47% of our stocks assigned a valuation and 21.79% of those equities are calculated to be overvalued by 20% or more.  Fifteen sectors are calculated to be overvalued--with six at or near double digits.

--Call Mr. Plow, That's My Name, That Name Again Is Mr. Plow!

Snow Removal Equipment Company Douglas Dynamics (PLOW) Is Upgraded

Douglas Dynamics, Inc. (PLOW) designs, manufactures and sells snow and ice control equipment for light trucks, which is comprised of snowplows and sand and salt spreaders, and related parts and accessories. The Company sells its products under the WESTERN(R), FISHER(R) and BLIZZARD(R) brands through a distributor network, primarily consisting of truck equipment distributors located throughout the Midwest, East and Northeast regions of the United States as well as all provinces of Canada. It sells its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial, municipal and residential areas. Douglas Dynamics, Inc. is headquartered in Milwaukee, Wisconsin.

ValuEngine subscribers can easily check out all of our top-rated STRONG BUY stocks with our "5-Engine Stocks" page found--HERE. When we sort today's database for upgrades with the best one-year forecast figures--which will always return the top-forecasts for newly upgraded STRONG BUYS, Douglas Dynamics comes up. This may seem like a strange result given the fact that winter is finally over, but the company manages its production exceedingly well to avoid boom and bust cycles.

Douglas Dynamics currently has a market share in excess of 50%, so they are doing quite well--insert mandatory warning about global climate-change threats to the long-term bottom line here of course. However, some analysts note that PLOW's major competition was recently acquired by Toro, so they will have to stay agile.

Our models like the company for its strong momentum and P/E Ratio. The company also has a good dividend yield. It recently reported a great increase in revenues year-over-year, but profits were down due to the costs related to the acquisition of Iowa-based snow and ice control equipment manufacturer Henderson Products. Keep in mind that their big earnings are seasonal--so picking it up in the down periods when there is no snow may be the best move for establishing a good, value-based position.

Probably Better to Put Your Money Into Douglas Dynamics (PLOW)

ValuEngine updated its recommendation from BUY to STRONG BUY for DOUGLAS DYNAMICS on 2015-05-05. Based on the information we have gathered and our resulting research, we feel that DOUGLAS DYNAMICS has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Momentum.

As a bonus to our Newsletter readers,
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Read our Complete Detailed Valuation Report on the Douglas Dynamics HERE.

Below is today's data on PLOW :

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	21.53	1.11%
3-Month	21.54	1.16%
6-Month	21.99	3.30%
1-Year	24.14	13.37%
2-Year	21.91	2.91%
3-Year	16.31	-23.37%

Valuation & Rankings
Valuation	3.12% undervalued	Valuation Rank(?)	67
1-M Forecast Return	1.11%	1-M Forecast Return Rank	99
12-M Return	25.83%	Momentum Rank(?)	83
Sharpe Ratio	0.49	Sharpe Ratio Rank(?)	76
5-Y Avg Annual Return	12.35%	5-Y Avg Annual Rtn Rank	76
Volatility	25.31%	Volatility Rank(?)	69
Expected EPS Growth	-27.76%	EPS Growth Rank(?)	11
Market Cap (billions)	0.47	Size Rank	55
Trailing P/E Ratio	12.14	Trailing P/E Rank(?)	88
Forward P/E Ratio	16.81	Forward P/E Ratio Rank	51
PEG Ratio	n/a	PEG Ratio Rank	n/a
Price/Sales	1.56	Price/Sales Rank(?)	55
Market/Book	2.74	Market/Book Rank(?)	43
Beta	1.27	Beta Rank	34
Alpha	0.13	Alpha Rank	80

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