November 5, 2015

VALUATION WATCH: Overvalued stocks now make up 50.12% of our stocks assigned a valuation and 17.53% of those equities are calculated to be overvalued by 20% or more. Nine sectors are calculated to be overvalued--with one overvalued by double digits.

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--ValuEngine Top-Five UPGRADES for the Day

ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities.  When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient--an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.

We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.

Below, we present the latest top-five list of UPGRADED stocks from our models. They are presented according to their one-month forecast return figures. Note that Skechers is still in the list. This means it is fluctuating right on the cusp of our criteria for the upgrade between BUY and STRONG BUY. We have covered it recently, so we will present data on the number two pick, Northstar Realty REIT, instead.

Below is today's data on Northstar Realty (NRF):

NorthStar Realty Finance Corp. is an internally-managed REIT that makes fixed income, structured finance and net lease investments in commercial real estate assets. NorthStar Realty's business consists of three core business lines: subordinate real estate debt, real estate securities and net lease properties.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for NORTHSTAR RLTY on 2015-11-04. Based on the information we have gathered and our resulting research, we feel that NORTHSTAR RLTY has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Company Size.

You can download a free copy of detailed report on NRF from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	20.27	1.09%
3-Month	20.91	4.29%
6-Month	21.78	8.64%
1-Year	22.67	13.08%
2-Year	24.65	22.96%
3-Year	27.46	36.95%

Valuation & Rankings
Valuation	17.18% overvalued	Valuation Rank(?)	21
1-M Forecast Return	1.09%	1-M Forecast Return Rank	98
12-M Return	7.91%	Momentum Rank(?)	73
Sharpe Ratio	0.12	Sharpe Ratio Rank(?)	65
5-Y Avg Annual Return	5.86%	5-Y Avg Annual Rtn Rank	69
Volatility	46.92%	Volatility Rank(?)	38
Expected EPS Growth	2.43%	EPS Growth Rank(?)	27
Market Cap (billions)	4.47	Size Rank	83
Trailing P/E Ratio	5.61	Trailing P/E Rank(?)	98
Forward P/E Ratio	5.48	Forward P/E Ratio Rank	97
PEG Ratio	2.31	PEG Ratio Rank	20
Price/Sales	2.85	Price/Sales Rank(?)	33
Market/Book	0.81	Market/Book Rank(?)	81
Beta	1.66	Beta Rank	16
Alpha	-0.49	Alpha Rank	15

DOWNLOAD A FREE SAMPLE OF OUR NORTHSTAR REALTY FINANCE REIT (NRF) REPORT BY CLICKING HERE
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