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June 16, 2016


VALUATION WATCH: Overvalued stocks now make up 40.23% of our stocks assigned a valuation and 13.55% of those equities are calculated to be overvalued by 20% or more. Six sectors are calculated to be overvalued.

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Indexing

--ValuEngine: Traveler's Retains Spot As Top DOW Stock

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.

Once again, Traveler's and Verizon retain their top positions. Traveler's Insurance is the sole STRONG BUY here-- as it has been for months now. Since the last time we presented the top Dow picks, Home Depot continues to climb up the list and Cisco Systems has also moved up one spot. United Health Care, McDonald's, and Johnson and Johnson have declined. Our three newcomers this month are Intel, Visa, and Nike. Pfizer, Microsoft, and JPMorgan Chase have fallen out of the top-ten list.

Ticker
Company Name
Market Price
Valuation
Last 12-M Retrn
1-M Forecast Retn
1-Yr Forecast Retn
P/E Ratio
Sector Name
March 25, 2016
TRV
TRAVELERS COS
111.81
-2.19%
13.18%
1.15%
13.87%
10.62
Finance
TRV
VZ
VERIZON COMM
52.84
1.58%
12.43%
0.92%
11.06%
13.29
Utilities
VZ
INTC
INTEL CORP
31.61
-1.63%
0.70%
0.65%
7.75%
12.87
Computer and Technology
JNJ
V
VISA INC-A
78.17
-75.00%
14.00%
0.63%
7.52%
29.13
Business Services
JPM
HD
HOME DEPOT
126.53
-12.78%
15.02%
0.61%
7.35%
22.01
Retail-Wholesale
UNH
JNJ
JOHNSON & JOHNS
116.41
8.62%
19.41%
0.60%
7.22%
18.50
Medical
HD
CSCO
CISCO SYSTEMS
28.65
-1.06%
0.60%
0.57%
6.86%
13.64
Computer and Technology
MCD
UNH
UNITEDHEALTH GP
137.26
1.82%
15.36%
0.48%
5.71%
20.59
Medical
CSCO
NKE
NIKE INC-B
54.31
-46.86%
5.10%
0.45%
5.35%
25.26
Consumer Discretionary
PFE
MCD
MCDONALDS CORP
122.25
15.03%
29.64%
0.43%
5.12%
23.26
Retail-Wholesale
MSFT

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.

Below is today's data on Visa (V):

VISA operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on VISA INC-A for 2016-06-15. Based on the information we have gathered and our resulting research, we feel that VISA INC-A has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.

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


ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
78.66 0.63%
3-Month
77.32 -1.09%
6-Month
74.07 -5.24%
1-Year
84.05 7.52%
2-Year
50.29 -35.67%
3-Year
24.88 -68.17%

Valuation & Rankings
Valuation
75.00% undervalued
Valuation Rank(?)
98
1-M Forecast Return
0.63%
1-M Forecast Return Rank
89
12-M Return
14.00%
Momentum Rank(?)
82
Sharpe Ratio
1.65
Sharpe Ratio Rank(?)
100
5-Y Avg Annual Return
27.20%
5-Y Avg Annual Rtn Rank
96
Volatility
16.44%
Volatility Rank(?)
82
Expected EPS Growth
1,203.35%
EPS Growth Rank(?)
100
Market Cap (billions)
237.64
Size Rank
100
Trailing P/E Ratio
29.13
Trailing P/E Rank(?)
45
Forward P/E Ratio
2.24
Forward P/E Ratio Rank
99
PEG Ratio
0.02
PEG Ratio Rank
93
Price/Sales
16.64
Price/Sales Rank(?)
7
Market/Book
39.87
Market/Book Rank(?)
3
Beta
0.81
Beta Rank
55
Alpha
0.14
Alpha Rank
83

DOWNLOAD A FREE SAMPLE OF OUR VISA (V) REPORT BY CLICKING HERE


 

 

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued
59.77%
Stocks Overvalued
40.23%
Stocks Undervalued by 20%
26.23%
Stocks Overvalued by 20%
13.55%

ValuEngine Sector Overview

Sector
Change
MTD
YTD
Valuation
Last 12-MReturn
P/E Ratio
1.27%
3.83%
34.02%
9.17% overvalued
20.22%
28.82
0.33%
-0.22%
4.44%
7.25% overvalued
3.63%
23.39
-0.02%
-0.36%
5.83%
4.85% overvalued
3.39%
23.19
-0.03%
-1.03%
3.51%
1.94% overvalued
-9.25%
17.79
-0.46%
-0.19%
10.22%
1.58% overvalued
-31.76%
22.55
0.13%
-0.27%
5.15%
0.21% overvalued
-10.14%
21.45
0.18%
-2.39%
-4.10%
1.50% undervalued
-4.74%
18.55
0.23%
-0.57%
6.30%
2.76% undervalued
-10.59%
27.45
0.49%
-0.73%
1.82%
3.95% undervalued
-12.49%
22.80
0.13%
-0.52%
10.63%
4.25% undervalued
-10.90%
22.63
0.17%
-2.04%
0.39%
5.13% undervalued
-5.80%
15.66
-0.02%
-2.32%
18.00%
7.11% undervalued
-5.55%
20.37
-0.02%
-1.32%
-6.50%
9.71% undervalued
-23.59%
26.62
-0.02%
-1.84%
0.44%
10.32% undervalued
-27.91%
13.27
0.66%
-3.04%
-3.32%
11.15% undervalued
-18.19%
11.75
0.86%
-1.07%
-4.76%
12.65% undervalued
-14.50%
21.82

 

ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day. 
Visit www.ValuEngine.com for more information

 

 
 
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