May 25, 2016

VALUATION WATCH: Overvalued stocks now make up 45.2% of our stocks assigned a valuation and 14.46% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued.

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Editor's Note: After this edition of our daily newsletter, we will be on a reduced publication schedule for the US Memorial Day holiday weekend. We will return to our normal schedule on Wednesday, June 1st. There will be no additional daily or weekly newsletters until then.

Indexing

--ValuEngine Rates and Ranks the DOW

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.

We can use our data to track individual stocks, industries, sectors, and indices. For today's bulletin, we present key metrics for the top picks in the Dow Jones Industrials. The companies listed below represent the top stocks within the index. They are presented below according to their one-month forecast gain.

This time around, our top-three stocks remain unchanged. Traveler's Insurance remains the overall leader--as it has for several months. Verizon retains its second-place position and JNJ is third. Since the last time we presented the top Dow picks, JPMorgan and Home Depot have moved up a bit while United Health Care and McDonald's have declined. We have two new companies in our list: Microsoft and Cisco Systems. GE and Nike have fallen out of the top ten.

NOTE: New stocks are in BOLD, old stocks that have moved up the list are in GREEN, old stocks that have declined in position are in RED, and stocks which have retained their position are in CAPS.

NOTE ALSO: Cisco Systems, Pfizer, and Microsoft are not currently rated a "BUY."

Below is today's data on JPMorgan Chase (JPM):

JPMorgan Chase & Co. is a financial services firm. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. It offers various investment banking products and services, including advising on corporate strategy and structure, capital-raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, prime brokerage. It also offers consumer and business, and mortgage banking products and services that include checking and savings accounts, mortgages, home equity and business loans, and investments. JPMorgan Chase & Co. is headquartered in New York.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on JPMORGAN CHASE for 2016-05-24. Based on the information we have gathered and our resulting research, we feel that JPMORGAN CHASE has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.

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

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	64.88	0.52%
3-Month	66.62	3.23%
6-Month	68.80	6.59%
1-Year	68.56	6.23%
2-Year	78.81	22.11%
3-Year	80.53	24.78%

Valuation & Rankings
Valuation	8.53% overvalued	Valuation Rank(?)	29
1-M Forecast Return	0.52%	1-M Forecast Return Rank	85
12-M Return	-2.90%	Momentum Rank(?)	63
Sharpe Ratio	0.24	Sharpe Ratio Rank(?)	74
5-Y Avg Annual Return	6.51%	5-Y Avg Annual Rtn Rank	75
Volatility	27.23%	Volatility Rank(?)	63
Expected EPS Growth	7.67%	EPS Growth Rank(?)	39
Market Cap (billions)	241.26	Size Rank	100
Trailing P/E Ratio	11.70	Trailing P/E Rank(?)	85
Forward P/E Ratio	10.87	Forward P/E Ratio Rank	77
PEG Ratio	1.52	PEG Ratio Rank	31
Price/Sales	2.40	Price/Sales Rank(?)	37
Market/Book	1.23	Market/Book Rank(?)	68
Beta	1.69	Beta Rank	17
Alpha	0.02	Alpha Rank	69

DOWNLOAD A FREE SAMPLE OF OUR JPMORGAN CHASE (JPM) REPORT BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview