August 12, 2016

VALUATION WATCH: Overvalued stocks now make up 48.24% of our stocks assigned a valuation and 15.78% of those equities are calculated to be overvalued by 20% or more. Eight sectors are calculated to be overvalued.

ValuEngine Index Overview

ValuEngine Market Overview

ValuEngine Sector Overview

Sector Talk--Consumer Staples

  Below, we present the latest data on Consumer Staples stocks from our Professional Stock Analysis Service    Top five lists are provided for each category.  We applied some basic liquidity criteria--share price greater than $3 and average daily volume in excess of 100k shares. 

Top-Five Consumer Staples Stocks--Short-Term Forecast Returns

Top-Five Consumer Staples Stocks--Long-Term Forecast Returns

Top-Five Consumer Staples Stocks--Composite Score

Top-Five Consumer Staples Stocks--Most Overvalued

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Cooper-Standard Holdings Inc. (CPS) operates as a supplier of systems and components for the automotive industry. Its products include sealing and trim, fuel and brake delivery, fluid transfer, thermal and emissions and anti-vibration systems. The company markets its products directly to automotive original equipment manufacturers, tier I and tier II suppliers, and non-automotive manufacturers. Cooper-Standard Holdings Inc. is headquartered in Novi, Michigan.

VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on COOPER-STANDARD for 2016-08-11. Based on the information we have gathered and our resulting research, we feel that COOPER-STANDARD has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Momentum.

Read our Complete Detailed Valuation Report on Cooper Standard HERE.

Valuation & Rankings
Valuation	15.20% overvalued	Valuation Rank(?)	21
1-M Forecast Return	1.12%	1-M Forecast Return Rank	99
12-M Return	52.37%	Momentum Rank(?)	91
Sharpe Ratio	0.60	Sharpe Ratio Rank(?)	86
5-Y Avg Annual Return	17.11%	5-Y Avg Annual Rtn Rank	89
Volatility	28.51%	Volatility Rank(?)	60
Expected EPS Growth	-1.00%	EPS Growth Rank(?)	22
Market Cap (billions)	1.64	Size Rank	72
Trailing P/E Ratio	8.97	Trailing P/E Rank(?)	93
Forward P/E Ratio	9.06	Forward P/E Ratio Rank	87
PEG Ratio	n/a	PEG Ratio Rank	n/a
Price/Sales	0.48	Price/Sales Rank(?)	83
Market/Book	3.59	Market/Book Rank(?)	33
Beta	0.68	Beta Rank	61
Alpha	0.29	Alpha Rank	89

What's Hot

Key Indices Set Simultaneous Records

We saw some great trading results this week, with major indices closing at all-time highs yesterday. The DOW, SP500, and NASDAQ all finished trading yesterday in record territory. That's the first time this has happened since the last day of 1999. Many equities are at or near their 52-week highs while far fewer are at or near their 52-week lows. And, analysts say the current trading levels resemble the boom year we had in 2013.

This shows how far we have come since that doom and gloom in the aftermath of that "Brexit" sell off in June. One hopes that investors were wary of calls for panic selling at that time, because we have made up all that ground and then some.

This is even more significant because it has occurred in the "dog-days" of Summer, when many have taken the advice to "sell in May and go away" in expectations of the oft-occuring Summer market doldrums. With low yields on bonds, equities remain the only game in town for those searching for yield. And the Fed has helped by keeping its hand off of rates--for now.

Meanwhile, our overvaluation figure has crept up a bit, but at 48% overvalued vs 52% undervalued it remains smack dab in the middle of "normal" range. Our models do not see signs of a market that is too hot-yet.

When Wall St traders and investors get back to work at the end of this month we could have prime conditions for another leg up and even more record-setting. Let's hope that works our the way it should and that the Fed keeps its foot off the brake for just a little bit longer.

We still want to see some employment growth and a fuller penetration of the recovery down into the labor markets and worker paychecks. We also would like to see some of the crazy uncertainty over the Fall election and the erratic personality of potential POTUS Donald J. Trump eliminated.

Meanwhile, let's remind ourselves of the bigger picture once again. In 2009, at the beginning of the Obama Administration, the common view in some circles was that the US economy was heading for a disaster/full on depression and investors were fools for staying in the market during the the full flower of the Bush economic disaster.

But, from that 666 SP500 inter-day low of March 9th of that year, we have seen an historic rally. The SP500 is up almost 220% since then with other indices showing similar gains. All those cries to "BUY GOLD BUY GUNS BUY SEEDS" were foolish.

Yet another reminder to never let political views and ideological shibboleths to get anywhere near your portfolio or your trading decisions. Slow and steady is still the best advice. Rational investing over time wins the race. Timing is a fool's game for most.

ValuEngineCapital Money Management Services

We are pleased to announce that ValuEngine Capital has begun trading for our clients. ValuEngine Capital, a registered investment advisory firm, offers our clients investment-management services based on industry-leading ValuEngine research. ValuEngine Capital melds the cutting-edge financial theory of ValuEngine's award-winning quantitative independent research with the best real-world Wall St. practices. ValuEngine Capital offers refined investment portfolios for investors of all risk-reward profiles.

ValuEngine Capital is offering several investment strategies to clients, including the the ValuEngine View Strategy and the ValuEngine Diversified Strategy

Professional Portfolio Management Services

ValuEngine View Strategy: The ValuEngine View Strategy is the product of a sophisticated stock valuation model that was first developed by ValuEngine's academic research team.

• It utilizes a three factor approach: fundamental variables such as a company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's future 12-month EPS, and the 30-year Treasury yield are all used to create a more accurate reflection of a company's fair value.

• A total of eleven additional firm specific variables are also used. The ValuEngine View portfolio is constructed by integrating both our Aggressive Growth—based on the Valuation Model--and Diversified Growth—based on the Forecast Model-- Portfolio Strategies.

• The ValuEngine View Strategy  is constructed by integrating this model along with some basic rules for market capitalization and industry diversification. The portfolio has 15 stocks and is rebalanced once each month.

Strategies To Suit All Investor Types

The ValuEngine Diversified Strategy: The ValuEngine Diversified Strategy invests in a variety of asset classes in order to provide investors with stable returns and a high- dividend yield coupled with significantly lower risk than single-asset products. 

• The ValuEngine Diversified Strategy may include ETFs focused on commodities, stock indices, REITS, bonds, emerging markets, and other suitable products.

• By reaping the benefits of diversification, the ValuEngine Diversified Strategy seeks to remain resilient during times of market volatility.

• The ValuEngine Diversified Strategy is designed for investors seeking management for their IRA and other retirement funds as well as those whose risk-profile is not suitable for our other strategies.

For more information, please contact us by email at info@ValuEngineCapital.com or by phone at (407) 308-5686.

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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