You are on page 1of 7

December 30, 2016

If you no longer wish to receive this free newsletter, CLICK HERE to unsubscribe
The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to
investing and the tools available from In today's fast-moving and globalized financial markets, it is easy to
get overloaded with information. The winners will adopt an objective, scientific, independent and
unemotional approach to investing. If you are not yet a member of ValuEngine's stock analysis service,
sign up now for a two-week free trial at www.valuengine.com!

VALUATION WARNING: Overvalued stocks now make up 65.54% of our


stocks assigned a valuation and 33.52% of those equities are calculated to
be overvalued by 20% or more. Fifteen sectors are calculated to be
overvalued.
MARKET OVERVIEW
Index

Started week

Friday AM

Change

Change %

ytd

DJIA

19943.46

19819.78

-123.68

-0.62%

13.74%

NASDAQ

5470.76

5432.09

-38.67

-0.71%

8.48%

RUSSELL 2000

1371.59

1363.18

-8.41

-0.61%

20.01%

S&P 500

2266.23

2249.26

-16.97

-0.75%

10.05%

Summary of VE Stock Universe


Stocks Undervalued

34.46%

Stocks Overvalued

65.54%

Stocks Undervalued by 20%

15.66%

Stocks Overvalued by 20%

33.52%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

0.49%

0.00%

12.75%

15.52% overvalued

13.39%

19.74

Auto-Tires-Trucks

-0.11%

0.69%

11.59%

7.80% overvalued

20.80%

14.73

Basic Materials

1.00%

1.37%

54.23%

16.05% overvalued

66.94%

27.9

Business Services

0.40%

2.24%

23.73%

12.11% overvalued

6.64%

24.11

Computer and Technology

0.13%

2.15%

22.88%

11.97% overvalued

9.58%

29.68

Construction

0.01%

1.75%

36.86%

11.61% overvalued

21.34%

20.5

Consumer Discretionary

0.16%

2.26%

12.38%

5.92% overvalued

14.10%

23.55

Consumer Staples

0.45%

3.01%

10.67%

6.69% overvalued

8.72%

24.19

Finance

0.13%

3.05%

17.86%

17.48% overvalued

12.44%

18.22

Industrial Products

0.02%

2.46%

27.80%

20.79% overvalued

21.55%

23.82

Medical

-0.05%

-0.36%

-0.73%

5.23% undervalued

-12.26%

27.83

Multi-Sector Conglomerates

0.53%

2.61%

13.77%

22.16% overvalued

11.41%

20.08

Oils-Energy

-0.07%

4.14%

32.84%

20.32% overvalued

25.60%

25.97

Retail-Wholesale

-0.06%

0.03%

3.50%

5.91% overvalued

5.13%

23.33

Transportation

0.00%

1.71%

19.03%

15.66% overvalued

7.84%

19.38

Utilities

0.39%

3.03%

16.26%

10.24% overvalued

16.39%

22.19

Sector TalkOils/Energy
Below, we present the latest data on leading Oils/Energy Sector stocks from our
Professional Stock Analysis Service. We applied some basic liquidity criteria--share
price greater than $3 and average daily volume in excess of 100k shares. We have
been following the sector closely of late because it has been correlated so tightly to
overall equity price moves.

Top-Five Oils/Energy Sector Stocks--Short-Term Forecast Returns


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

UPLMQ

ULTRA PETRO CP

7.07

N/A

172.97%

GMLP

GOLAR LNG PARTN

23.74

1.73%

80.81%

NGL

NGL ENERGY PART

20.95

-13.82%

98.02%

SXCP

SUNCOKE ENERGY

19.75

29.94%

189.59%

ARLP

ALLIANCE RES

21.95

21.37%

64.17%

Top-Five Oils/Energy Sector Stocks--Long-Term Forecast Returns


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

SD

SANDRIDGE ENRGY

23.67

N/A

12050.92%

ARCH

ARCH COAL INC

78.13

N/A

8373.97%

BAS

BASIC EGY SVCS

35.39

N/A

1120.34%

REN

RESOLUTE ENERGY

40.31

-64.59%

958.98%

CWEI

WILLIAMS(C)ENGY

122.87

300.00%

319.21%

Top-Five Oils/Energy Sector Stocks--Composite Score


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

NGL

NGL ENERGY PART

20.95

-13.82%

98.02%

BWP

BOARDWALK PIPLN

17.57

-20.36%

41.35%

GMLP

GOLAR LNG PARTN

23.74

1.73%

80.81%

DPM

DCP MIDSTREAM

38.36

-6.19%

59.70%

OKS

ONEOK PARTNERS

43.74

-0.60%

53.91%

Top-Five Oils/Energy Sector Stocks--Most Overvalued


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

RIG

TRANSOCEAN LTD

14.71

300.00%

15.74%

ATW

ATWOOD OCEANICS

13.07

300.00%

25.31%

CWEI

WILLIAMS(C)ENGY

122.87

300.00%

319.21%

WG

WILLBROS GROUP

3.12

300.00%

15.56%

PACD

PACIFIC DRILLNG

4.13

300.00%

-54.11%

Find out what Wall Street Investment and Media Professionals already know,
ValuEngine offers sophisticated stock valuation and forecast research as well as a
variety of portfolio screening and creation tools.

Free Download for Readers


As a bonus to our Free Weekly Newsletter subscribers,
we are offering a FREE DOWNLOAD of one of our Stock Reports
Wal-Mart Stores, Inc. (WMT) is the world's largest retailer. They are engaged in the
operation of mass merchandising stores, which serve their customers primarily through
the operation of three segments, which are the Wal-Mart Stores segment, the SAM'S
Club segment and the International segment.
VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on
WAL-MART STORES for 2016-12-29. Based on the information we have gathered and
our resulting research, we feel that WAL-MART STORES has the probability to
OUTPERFORM average market performance for the next year. The company exhibits
ATTRACTIVE Company Size and Price Sales Ratio.
You can download a free copy of detailed report on Wal-Mart Stores, Inc. (WMT)
from the link below.
Read our Complete Detailed Valuation Report on Wal-Mart (WMT) HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

69.57

0.45%

3-Month

70.07

1.17%

6-Month

70.57

1.89%

1-Year

73.02

5.42%

2-Year

74.06

6.94%

3-Year

76.12

9.90%

Valuation & Rankings


Valuation

9.48% overvalued

Valuation Rank(?)

1-M Forecast Return

0.45%

1-M Forecast Return Rank

12-M Return

12.42%

Momentum Rank(?)

Sharpe Ratio

0.22

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

3.58%

5-Y Avg Annual Rtn Rank

Volatility

16.08%

Volatility Rank(?)

Expected EPS Growth

-2.62%

EPS Growth Rank(?)

Market Cap (billions)

223.24

Size Rank

Trailing P/E Ratio

15.54

Trailing P/E Rank(?)

Forward P/E Ratio

15.96

Forward P/E Ratio Rank

51
82
57
66
61
79
18
100
77
56

PEG Ratio

n/a

PEG Ratio Rank

Price/Sales

0.46

Price/Sales Rank(?)

Market/Book

3.56

Market/Book Rank(?)

Beta

0.12

Beta Rank

76

Alpha

0.17

Alpha Rank

78

n/a
85
34

ValuEngineCapital Money Management Services


We are pleased to announce that ValuEngine Capital has begun trading for
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 awardwinning 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
Growthbased on the Valuation Model--and Diversified Growthbased 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.

Please contact us if you would like to put the power of ValuEngine to work
for you at the new full-service money management firm-ValuEngine Capital
For more information, please contact ValuEngine Capital by email at
info@ValuEngineCapital.com or by phone at (407) 308-5686.
Or, sign up online with the easy-to-use portal HERE:

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 and a free trial.

You might also like