December 1, 2016

VALUATION WATCH: Overvalued stocks now make up 63.25% of our stocks assigned a valuation and 31.98% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued.

If you cannot display this bulletin properly, GO HERE

Ch-Ch-Ch-Changes

--Big Turnover For ValuEngine SP500 Top Stock List As HP Enterprise Takes Number One

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.

This week, we find a great deal of turnover since the last time we looked at the SP500 back in October. We have 80% turnover, with a new member and leader in Hewlett Packard Enterprise. The only stocks left from the last time we published our top-ten list are Applied Materials--which declined from second to fourth--and LAM Research--which maintained its position in seventh.

Other newcomers include Navient Corp, Urban Outfitters, TIme Warner, Scripps Networks, Exelon Corp, Qualcomm, and Best Buy. Those new companies have replaced Michael Kors, Tyson Foods, CBS, KLA Tencor, United Rentals, Broadcom, Zimmer Biomet, and International Paper.

While we have a tech-heavy list yet again, we also see that Retail and Consumer Discretionary firms are making a strong showing this month. In addition, the first four firms are ranked STRONG BUY while the remainder are BUY-rated 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, Hewlett Packard Enterprise Company (HPE).

Hewlett Packard Enterprise Company was spun-off from the Hewlett-Packard Company in November 2015. The company operates in four segments: Enterprise Services, Enterprise Group, Software and Financial Services. The Enterprise Group is the company's largest revenue contributor, accounting for more than half of total revenues. This segment offers servers, management software, converged infrastructure solutions and technology services; hybrid cloud solutions, business critical systems and storage products. The Software segment offers software to capture, store, explore, analyze, protect and share information and insights within and outside organizations; enterprise security, application delivery management, IT operations management software products. The Enterprise Services segment offers consulting, outsourcing and support services across infrastructure, applications and business process domains; application and business services. The company is headquartered in Palo Alto, California.

ValuEngine continues its STRONG BUY recommendation on Hewlett Packard Enterprise for 2016-11-30. Based on the information we have gathered and our resulting research, we feel that Hewlett Packard Enterprise 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 Hewlett Packard Enterprise (HPE) from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	102.19	0.32%
3-Month	101.74	-0.12%
6-Month	100.51	-1.33%
1-Year	105.78	3.84%
2-Year	95.06	-6.68%
3-Year	72.29	-29.03%

Valuation & Rankings
Valuation	18.08% undervalued	Valuation Rank(?)	83
1-M Forecast Return	0.32%	1-M Forecast Return Rank	74
12-M Return	0.84%	Momentum Rank(?)	45
Sharpe Ratio	0.67	Sharpe Ratio Rank(?)	87
5-Y Avg Annual Return	13.89%	5-Y Avg Annual Rtn Rank	84
Volatility	20.70%	Volatility Rank(?)	70
Expected EPS Growth	7.76%	EPS Growth Rank(?)	38
Market Cap (billions)	17.25	Size Rank	94
Trailing P/E Ratio	12.88	Trailing P/E Rank(?)	84
Forward P/E Ratio	11.96	Forward P/E Ratio Rank	75
PEG Ratio	1.66	PEG Ratio Rank	30
Price/Sales	2.27	Price/Sales Rank(?)	43
Market/Book	1.77	Market/Book Rank(?)	57
Beta	1.26	Beta Rank	29
Alpha	-0.02	Alpha Rank	42

DOWNLOAD A FREE SAMPLE OF OUR HEWLETT PACKARD ENTERPRISE (HPE) REPORT BY CLICKING HERE

ValuEngine Market Overview

ValuEngine Sector Overview