January 29, 2016

VALUATION WATCH: Overvalued stocks now make up 25.8% of our stocks assigned a valuation and 7.55% of those equities are calculated to be overvalued by 20% or more. Zero sectors are calculated to be overvalued.

ValuEngine Index Overview

ValuEngine Market Overview

ValuEngine Sector Overview

Sector Talk--Basic Materials

  Below, we present the latest data on Basic Materials 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 Basic Materials Stocks--Short-Term Forecast Returns

Top-Five Basic Materials Stocks--Long-Term Forecast Returns

Top-Five Basic Materials Stocks--Composite Score

Top-Five Basic Materials Stocks--Most Overvalued

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JCPenney (JCP) is one of America's leading retailers, operating department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands.

ValuEngine continues its HOLD recommendation on PENNEY (JC) INC for 2016-01-28. Based on the information we have gathered and our resulting research, we feel that PENNEY (JC) INC has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Price Sales Ratio but UNATTRACTIVE P/E Ratio.

Read our Complete Detailed Valuation Report on JCPenney HERE.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	6.80	-0.29%
3-Month	6.62	-2.97%
6-Month	6.42	-5.84%
1-Year	6.58	-3.48%
2-Year	4.74	-30.52%
3-Year	2.80	-58.95%

Valuation & Rankings
Valuation	66.48% undervalued	Valuation Rank(?)	94
1-M Forecast Return	-0.29%	1-M Forecast Return Rank	29
12-M Return	-8.58%	Momentum Rank(?)	62
Sharpe Ratio	-0.64	Sharpe Ratio Rank(?)	21
5-Y Avg Annual Return	-31.59%	5-Y Avg Annual Rtn Rank	23
Volatility	49.63%	Volatility Rank(?)	35
Expected EPS Growth	73.64%	EPS Growth Rank(?)	83
Market Cap (billions)	2.08	Size Rank	77
Trailing P/E Ratio	n/a	Trailing P/E Rank(?)	15
Forward P/E Ratio	n/a	Forward P/E Ratio Rank	n/a
PEG Ratio	0.07	PEG Ratio Rank	86
Price/Sales	0.17	Price/Sales Rank(?)	93
Market/Book	1.34	Market/Book Rank(?)	60
Beta	1.20	Beta Rank	32
Alpha	0.04	Alpha Rank	71

What's Hot

Apple Posts Disappointing Results

Apple Inc. (AAPL) is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.

Apple posted disappointing results this past Tuesday, and the market reacted in a negative fashion. The company posted revenues of $75.87 billion, which was below consensus estimates--$76.6 billion. Earnings per share increased to $3.28/share up from the $3.06/share posted last year--and they beat estimates of $3.23/share here. Net income also increased, to $18.36 billion--a boost of almost 2%.

However, while these numbers represent growth, they do not show the sort of explosive climb analysts and investors have grown to expect from Apple. And once you dig into the numbers, there is reason for concern. The all important iPhone numbers were similarly disappointing, with the sales growth essentially flat--growth was less than 1%. Mac computer and iPad sales provided no solace, and were down year-over-year.

While the company reported higher sales to China than elsewhere, those numbers were also down when compared to the past fiscal year. Apple noted that sales were harmed in foreign markets--which are hugely important to the company--due to the stronger US dollar.

Luca Maestri, Apple CFO, noted that "record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment." Tim Cook, the CEO, also noted the tough global environment and said earnings were impacted by "extreme conditions unlike anything we've experienced before just about anywhere we look."

The shares declined in aftermarket trading last night, and they are now down even more. As expected, the relatively bad news from Apple hurt the market as those results, along with bad reports from Boeing, served to further fuel doubts about the health of the global economy.

Of course, this stock is a powerhouse. They retain a massive cash reserve on their balance sheet. And a "bad" Apple is still a huge company with oversized revenues. But, if he explosive growth phase is over, then investors will need to adjust their expectations. Regardless, it will take a while for changes in guidance, analysts estimates, and share price fluctuations to work their way through our systems.

ValuEngine Capital Is Now Autotrading Our Strategies

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 two investment strategies to clients, the ValuEngine View Strategy and the ValuEngine Market Neutral Strategy.

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. Automatically Trade Our Portfolio Strategies ValuEngine Market Neutral Strategy: The ValuEngine Market Neutral Strategy is the product of ValuEngine's Forecast Model. This model was developed by a team of PhD's and is based on the cutting edge economic theories of Wall Street professionals and Ivy League academics. We carefully examine dozens of fundamental and technical factors for over 8,000 individual stocks, synthesize the data, and then come up with a sector-diverse list of our best and worst forecast 1-month return stocks. Short and long-term historic factors in the VE Forecast model's calculation include past-valuation levels of the stock and its recent price-momentum factor relative to other stocks. The ValuEngine Market Neutral Strategy utilizes Forecast Model outputs along with market capitalization, price, and sector diversification rules to construct a monthly portfolio made up of 16 stocks for both the long and short sides.

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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