May 19, 2015

VALUATION WARNING: Overvalued stocks now make up 65.85% of our stocks assigned a valuation and 27.71% of those equities are calculated to be overvalued by 20% or more.  ALL sectors are calculated to be overvalued--with seven at or near double digits.

--Home is Where the Heart is...

ValuEngine.com STRONG BUY HomeStreet Hits 52-week High

HomeStreet, Inc. (HMST) is a diversified financial services company. The Company is engaged in real estate lending, including mortgage banking activities and retail and business banking operations and serves consumers and businesses in the Pacific Northwest and Hawaii. It offers deposit and investment products and cash management services and single family loans and commercial loans. HomeStreet's primary subsidiaries are HomeStreet Bank and HomeStreet Capital Corporation. It operates in Washington, Oregon, Idaho and Hawaii. HomeStreet, Inc. is headquartered in Seattle, Washington.

HomeStreet was a selection for our Small Cap Stock Newsletter this month and is currently up more than 15% for subscribers. The stock hit a 52-week high yesterday with its close at $22.39/share. In March, the company completed its merger with Simplicity Bank and in April it reported Q1 earnings which were quite impressive-- net income of $10.3 million, or $0.59 per diluted share, for the first quarter of 2015, compared to net income of $5.6 million, or $0.38 per share, for the fourth quarter of 2014 and $2.3 million, or $0.15 per share, for the first quarter of 2014.

At that time, Chairman and Chief Executive Officer Mark K. Mason noted that HomeStreet "made substantial progress toward our goals this quarter. We closed our merger with Simplicity, recognizing a bargain purchase gain and meaningfully reducing the amount of merger-related expenses."

With the good news, some analysts upgraded the stock and noted that it was well-positioned to profit from current housing market conditions due to its mortgage banking business and ability to benefit from the ongoing wave of re-financing activity. The stock has been moving up ever since. The price increases have also been met with a concurrent wave of increasing earnings estimates (both quarterly and yearly) from analysts as well. So, the stock has been experiencing the best of both worlds and looks more attractive to investors.

ValuEngine continues its STRONG BUY recommendation on HOMESTREET INC for 2015-05-18. Based on the information we have gathered and our resulting research, we feel that HOMESTREET INC 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,
we are offering a FREE DOWNLOAD of one of our Stock Reports

Read our Complete Detailed Valuation Report on HomeStreet HERE.

Below is today's data on FB :

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	22.62	1.03%
3-Month	23.02	2.82%
6-Month	23.87	6.60%
1-Year	25.15	12.32%
2-Year	26.48	18.26%
3-Year	18.29	-18.31%

Valuation & Rankings
Valuation	17.55% overvalued	Valuation Rank(?)	32
1-M Forecast Return	1.03%	1-M Forecast Return Rank	98
12-M Return	28.46%	Momentum Rank(?)	83
Sharpe Ratio	0.53	Sharpe Ratio Rank(?)	78
5-Y Avg Annual Return	14.06%	5-Y Avg Annual Rtn Rank	80
Volatility	26.70%	Volatility Rank(?)	66
Expected EPS Growth	36.47%	EPS Growth Rank(?)	71
Market Cap (billions)	0.33	Size Rank	51
Trailing P/E Ratio	10.89	Trailing P/E Rank(?)	91
Forward P/E Ratio	7.98	Forward P/E Ratio Rank	95
PEG Ratio	0.30	PEG Ratio Rank	74
Price/Sales	0.96	Price/Sales Rank(?)	70
Market/Book	1.09	Market/Book Rank(?)	76
Beta	0.18	Beta Rank	84
Alpha	0.11	Alpha Rank	79

Want To Know More About Our ValuEngine View Newsletter?

Looking for a monthly portfolio of stock picks which are objective and based on cutting-edge academic theory and Wall St.practice? Then subscribe to The ValuEngine View Newsletter.The ValuEngine View Portfolio is based on our highly-refined and tested ValuEngine Portfolio Strategies along with our proprietary quant-based composite scoring system. The ValuEngine View Newsletter is the product of sophisticated stock valuation and forecast models first developed by Yale Professor of Finance Zhiwu Chen.

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.

  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. 

CLICK HERE to Subscribe to the ValuEngine View

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

ValuEngine Sector Overview

ValuEngine.com Products and Services

With the ValuEngine Forecast 16 Market Neutral Strategy Portfolio Newsletter, you can run your own portfolio like a hedge fund to manage risk and profit in any market environment.	Click HERE to Sign Up for ValuEngine's Market Neutral Newsletter
With ValuEngine.com's Premium Website Membership you get forecasts, valuations, and recommendations on more than 7,000 stocks updated every trading day!  NO OBLIGATION, 14-DAY FREE TRIAL!	Click HERE to Sign Up for a FREE TRIAL