February 1, 2016

VALUATION WATCH: Overvalued stocks now make up 29.39% of our stocks assigned a valuation and 8.76% of those equities are calculated to be overvalued by 20% or more. One sector is calculated to be overvalued.

UPGRADES

--ValuEngine Top-Five BUY/STRONG BUY Upgrades

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 combine all of the equities with a valuation calculation to track market valuation figures and use them as a metric for making calls about the overall state of the market.  Two factors can lower these figures-- a market pullback, or a significant rise in EPS estimates.

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.

So, for today's bulletin we used our website's advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented alphabetically. Commerical Metals Company (CMC) is the leader here.

Below is today's data on Commerical Metals Company (CMC):

Commercial Metals Company has three segments - manufacturing, recycling, and marketing and trading. Activities are primarily concerned with metals related activities. The manufacturing segment is the dominant and most rapidly expanding segment in terms of assets employed, capital expenditures, operating profit and number of employees. The recycling segment is engaged in processing secondary, or scrap, metals for further recycling into new metal products. The marketing and trading segment buys and sells primary and secondary metals, and fabricated metals.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for COMMERCIAL METL on 2016-01-29. Based on the information we have gathered and our resulting research, we feel that COMMERCIAL METL has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Price Sales Ratio.

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

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	14.07	1.09%
3-Month	14.38	3.30%
6-Month	14.76	6.07%
1-Year	15.74	13.05%
2-Year	15.65	12.42%
3-Year	16.06	15.38%

Valuation & Rankings
Valuation	6.13% undervalued	Valuation Rank(?)	40
1-M Forecast Return	1.09%	1-M Forecast Return Rank	98
12-M Return	4.35%	Momentum Rank(?)	78
Sharpe Ratio	-0.13	Sharpe Ratio Rank(?)	47
5-Y Avg Annual Return	-3.84%	5-Y Avg Annual Rtn Rank	47
Volatility	30.26%	Volatility Rank(?)	56
Expected EPS Growth	-31.25%	EPS Growth Rank(?)	10
Market Cap (billions)	1.64	Size Rank	74
Trailing P/E Ratio	9.67	Trailing P/E Rank(?)	88
Forward P/E Ratio	14.06	Forward P/E Ratio Rank	51
PEG Ratio	n/a	PEG Ratio Rank	n/a
Price/Sales	0.30	Price/Sales Rank(?)	87
Market/Book	1.26	Market/Book Rank(?)	63
Beta	1.74	Beta Rank	15
Alpha	-0.16	Alpha Rank	34

DOWNLOAD A FREE SAMPLE OF OUR COMMERCIAL METALS SUMMARY REPORT BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview