May 23, 2016

VALUATION WATCH: Overvalued stocks now make up 39.01% of our stocks assigned a valuation and 12.93% of those equities are calculated to be overvalued by 20% or more. Five sectors are calculated to be overvalued.

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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 by one-month forecast return. Best Buy (BBY) is the leader here.

Below is today's data on Best Buy (BBY):

Best Buy operates in a single business segment, selling personal computers and other home office products, consumer electronics, entertainment software, major appliances and related accessories principally through its retail stores. They operate retail stores and commercial Websites under the brand names Best Buy, Media Play, On Cue, Sam Goody, Suncoast, Magnolia Hi-Fi and Future Shop. They also operate in three segments: Best Buy, Musicland and International.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from HOLD to BUY for BEST BUY on 2016-05-20. Based on the information we have gathered and our resulting research, we feel that BEST BUY has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Price Sales Ratio.

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

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	32.51	0.51%
3-Month	33.44	3.41%
6-Month	34.60	6.99%
1-Year	34.33	6.16%
2-Year	40.19	24.26%
3-Year	41.08	27.02%

Valuation & Rankings
Valuation	8.57% overvalued	Valuation Rank(?)	26
1-M Forecast Return	0.51%	1-M Forecast Return Rank	85
12-M Return	-4.26%	Momentum Rank(?)	63
Sharpe Ratio	0.01	Sharpe Ratio Rank(?)	62
5-Y Avg Annual Return	0.54%	5-Y Avg Annual Rtn Rank	62
Volatility	42.79%	Volatility Rank(?)	43
Expected EPS Growth	5.76%	EPS Growth Rank(?)	35
Market Cap (billions)	11.34	Size Rank	92
Trailing P/E Ratio	11.63	Trailing P/E Rank(?)	85
Forward P/E Ratio	11.00	Forward P/E Ratio Rank	75
PEG Ratio	2.02	PEG Ratio Rank	22
Price/Sales	0.29	Price/Sales Rank(?)	89
Market/Book	2.88	Market/Book Rank(?)	37
Beta	1.49	Beta Rank	22
Alpha	-0.06	Alpha Rank	47

DOWNLOAD A FREE SAMPLE OF OUR BEST BUY (BBY) REPORT BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview