October 20, 2016

VALUATION WATCH: Overvalued stocks now make up 48% of our stocks assigned a valuation and 16.43% of those equities are calculated to be overvalued by 20% or more. Nine sectors are calculated to be overvalued.

Editor's Note: Starting Thursday, October 27th, we will be on a limited publication schedule. There will be no Daily or Weekly Newsletters. We will resume our normal publcaiton schedule on Wednesday, November 2nd.

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--Kors Returns To Number One SP500 Stock For ValuEngine

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 S&P 500. The companies listed below represent the top-ten BUY/STRONG BUY stocks within the index. They are presented below according to their one-month forecast target prices.

In our last edition. Micahel Kors was finally dethroned as our top-ranked SP500 stock. But, the reign of new leader CBS at the top of our chart did not last long. Today's query of our systems shows that Kors is back at number one while CBS has fallen to the number four spot.

This week, we find that KLA Tencor also declined to make room for Kors' return to the premier spot. We also see that Applied Materials, Tyson Foods, UTD Rentals, and Zimmer Biomet managed to move up a few spots. Turnover was relatively light, with newcomers LAM Research, Broadcom, and International Paper just managing to creep into the top ten.

Scripps Networks, Global Payments, and Entergy have fallen out of our op-stick list. Our list is dominated by tech and consumer discretionary firms this month. And, each company in our top-ten list is ranked STRONG BUY or BUY this time around.

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 one of our SP500 top-ten newcomers, International Paper Co. (IP).

International Paper Co. (IP) is a global paper and forest products company that is complemented by an extensive distribution system. The company produces printing and writing papers, pulp, tissue, paperboard and packaging and wood products. The company also manufacture specialty chemicals and specialty panels and laminated products. Its primary markets and manufacturing and distribution operations are in the United States, Europe and the Pacific Rim.

ValuEngine continues its BUY recommendation on INTL PAPER for 2016-10-19. Based on the information we have gathered and our resulting research, we feel that INTL PAPER 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 International Paper Co. (IP) from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	48.72	0.90%
3-Month	49.03	1.56%
6-Month	49.13	1.76%
1-Year	53.50	10.81%
2-Year	46.94	-2.78%
3-Year	40.60	-15.91%

Valuation & Rankings
Valuation	9.09% undervalued	Valuation Rank(?)	66
1-M Forecast Return	0.90%	1-M Forecast Return Rank	96
12-M Return	16.31%	Momentum Rank(?)	74
Sharpe Ratio	0.64	Sharpe Ratio Rank(?)	82
5-Y Avg Annual Return	14.49%	5-Y Avg Annual Rtn Rank	80
Volatility	22.50%	Volatility Rank(?)	68
Expected EPS Growth	20.74%	EPS Growth Rank(?)	57
Market Cap (billions)	20.45	Size Rank	95
Trailing P/E Ratio	13.72	Trailing P/E Rank(?)	81
Forward P/E Ratio	11.36	Forward P/E Ratio Rank	76
PEG Ratio	0.66	PEG Ratio Rank	53
Price/Sales	0.95	Price/Sales Rank(?)	68
Market/Book	30.12	Market/Book Rank(?)	5
Beta	1.56	Beta Rank	19
Alpha	0.05	Alpha Rank	66

DOWNLOAD A FREE SAMPLE OF OUR INTERNATIONAL PAPER (IP) REPORT BY CLICKING HERE

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