August 7, 2015

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VALUATION WATCH: Overvalued stocks now make up 48.6% of our stocks

assigned a valuation and 17.32% of those equities are calculated to be
overvalued by 20% or more. Nine sectors are calculated to be
overvalued--with three at or near double digits.
MARKET OVERVIEW
Index

Started week

Friday PM

Change

Change %

ytd

DJIA

17696.74

17319.1

-377.64

-2.13%

-2.83%

NASDAQ

5134.34

5015.46

-118.88

-2.32%

6.11%

RUSSELL 2000

1238.32

1204.15

-34.17

-2.76%

-0.05%

S&P 500

2104.49

2070.69

-33.8

-1.61%

0.57%

Summary of VE Stock Universe

Stocks Undervalued

51.40%

Stocks Overvalued

48.60%

Stocks Undervalued by 20%

20.97%

Stocks Overvalued by 20%

17.32%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

-0.26%

-0.16%

5.34%

11.92% overvalued

1.96%

19.81

Auto-Tires-Trucks

-1.18%

-0.38%

-1.11%

5.36% undervalued

-6.78%

14.88

Basic Materials

0.84%

-0.56%

-12.43%

17.94% undervalued

-34.81%

20.94

Business Services

-1.14%

-1.07%

1.85%

7.44% overvalued

-0.19%

24.26

Computer and Technology

-0.66%

-1.50%

-1.47%

1.82% overvalued

-0.33%

29.13

Construction

-0.47%

-0.10%

1.89%

4.64% undervalued

1.73%

23.4

Consumer Discretionary

-0.93%

-0.84%

5.99%

4.83% overvalued

0.02%

28.38

Consumer Staples

-0.80%

-0.72%

0.05%

7.96% overvalued

2.14%

23.3

Finance

-0.72%

-0.72%

1.46%

2.67% overvalued

0.67%

17.41

Industrial Products

-0.29%

-1.71%

-2.99%

6.01% undervalued

-8.72%

19.52

Medical

-1.48%

-1.40%

13.70%

12.54% overvalued

16.84%

31.39

Multi-Sector Conglomerates

-0.51%

-1.21%

-2.34%

2.57% overvalued

-6.26%

21.48

Oils-Energy

0.74%

-3.26%

-14.35%

14.49% undervalued

-45.17%

23.67

Retail-Wholesale

-1.33%

-1.29%

-2.35%

3.23% overvalued

6.83%

25.67

Transportation

-0.44%

-1.43%

-4.34%

3.67% undervalued

-4.29%

17.25

Utilities

-1.07%

-1.34%

-4.69%

1.53% undervalued

-4.44%

21.85

ValuEngine Newsletters Latest Results

VE Newsletter

Current
Benchmark *
Month Total

Last Month
Total

Benchmark *

Since
Inception

Benchmark *

Forecast MNS

11.10

0.01

5.26

-1.25

142.00

31.59

Dividend Stock

-1.00

-0.42

0.57

2.21

7.42

35.83

Small Cap Stock

-1.09

0.17

-1.76

-1.38

35.74

55.04

View

-3.06

-0.36

-5.74

-0.73

119.74

86.09

*NOTE: Benchmark for Forecast MNS for last month and inception is the MLSAX Long/Short Fund.
Benchmark for Small Cap is the Russell 2000 Small Cap Index (RUT). Benchmark for current month
Forecast MNS and all other portfolios for all time frames is the S&P500.

Sector TalkAutos/Tires/Trucks
Below, we present the latest data on leading Autos/Tires/Trucks Sector stocks
from our Institutional software package (VEI). These results were filtered by market
price and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Autos/Tires/Trucks Sector Stocks--Short-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

AXL

AMER AXLE & MFG

20.55

-12.09%

15.84%

GT

GOODYEAR TIRE

30.74

24.63%

26.82%

PLOW

DOUGLAS DYNAMIC

22.82

0.12%

25.66%

LEA

LEAR CORPORATN

104.16

-11.76%

10.06%

TM

TOYOTA MOTOR CP

128.81

-1.02%

10.46%

Top-Five Autos/Tires/Trucks Sector Stocks--Long-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

AXL

AMER AXLE & MFG

20.55

-12.09%

15.84%

GT

GOODYEAR TIRE

30.74

24.63%

26.82%

PLOW

DOUGLAS DYNAMIC

22.82

0.12%

25.66%

LEA

LEAR CORPORATN

104.16

-11.76%

10.06%

TM

TOYOTA MOTOR CP

128.81

-1.02%

10.46%

Top-Five Autos/Tires/Trucks Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

LEA

LEAR CORPORATN

AXL

AMER AXLE & MFG

104.16

-11.76%

10.06%

20.55

-12.09%

15.84%

TM

TOYOTA MOTOR CP

128.81

-1.02%

10.46%

GM

GENERAL MOTORS

31.86

-8.12%

-4.61%

MGA

MAGNA INTL CL A

54.44

-6.00%

1.66%

Top-Five Autos/Tires/Trucks Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

TSLA

TESLA MOTORS

246.13

86.42%

-1.12%

REMY

REMY INTL INC

29.46

40.47%

37.73%

VC

VISTEON CORP

101.11

37.56%

1.51%

CTB

COOPER TIRE

35.6

27.34%

23.87%

GT

GOODYEAR TIRE

30.74

24.63%

26.82%

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we are offering a FREE DOWNLOAD of one of our Stock Reports
PepsiCo, Inc. (PEP) consists of: Frito-Lay Company, Pepsi-Cola Company, and
Tropicana Products. PepsiCo brands are among the best known and most respected
in the world and are available in countries and territories throughout the world.
PepsiCo's success is the result of superior products, high standards of performance,
distinctive competitive strategies and the high integrity of its people.
VALUENGINE RECOMMENDATION: ValuEngine continues its HOLD recommendation
on PEPSICO INC for 2015-08-06. Based on the information we have gathered and our
resulting research, we feel that PEPSICO INC has the probability to ROUGHLY MATCH
average market performance for the next year. The company exhibits ATTRACTIVE
Company Size but UNATTRACTIVE Book Market Ratio.
As a bonus to our Newsletter readers,
we are offering a FREE DOWNLOAD of one of our Stock Reports
Read our Complete Detailed Valuation Report on Pepsi HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

99.21

0.06%

3-Month

100.42

1.29%

6-Month

102.29

3.17%

1-Year

99.90

0.76%

2-Year

116.76

17.76%

3-Year

96.29

-2.88%

Valuation & Rankings

Valuation

17.01% overvalued

Valuation Rank(?)

1-M Forecast Return

0.06%

1-M Forecast Return Rank

12-M Return

9.55%

Momentum Rank(?)

Sharpe Ratio

0.70

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

7.90%

5-Y Avg Annual Rtn Rank

Volatility

11.34%

Volatility Rank(?)

Expected EPS Growth

3.19%

EPS Growth Rank(?)

Market Cap (billions)

148.39

Size Rank

Trailing P/E Ratio

21.55

Trailing P/E Rank(?)

Forward P/E Ratio

20.89

Forward P/E Ratio Rank

PEG Ratio

6.76

PEG Ratio Rank

Price/Sales

2.27

Price/Sales Rank(?)

Market/Book

9.01

Market/Book Rank(?)

Beta

0.41

Beta Rank

Alpha

0.05

Alpha Rank

21
55
70
86
69
89
29
100
54
29
5
41
14
69
75

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ValuEngine Signs New Distribution Deal With

ResearchPool

Today, UK-based financial technology start-up ResearchPool Limited

welcomed US-based stock valuation and forecasting service ValuEngine to its
innovative online financial research and market-commentary aggregation platform.
ValuEngine brings coverage of more than 4,300 US stocks, including ADRs and
foreign stocks that trade on US markets, to the platform. This extends the
ResearchPool coverage to the US-based NYSE, NASDAQ and OTC markets.
ValuEngine specializes in fundamentals-driven quant-based research. Their stock
rating and forecast reports incorporate outputs from all of their proprietary models.
These reports include a valuation overview, BUY/HOLD/SELL rating, fair-value
assessment, return forecasts, market ratio-based valuations, comparable stock
analysis, and complete company financials.
These reports will be available on a pay-as-you-go basis via ResearchPools
user-friendly, secure online check-out process. In addition, a subscription service for
industry professionals will also be available later this summer.
James Woodley, Co-Founder and Director of ResearchPool, noted that
Making ValuEngines Rating and Forecast Reports on US Equities available to
professional and retail investors is an important step for ResearchPool as we strive to
provide the most comprehensive and easily-accessible research and market

commentary in Europe. ResearchPool customers will benefit from easy access to

ValuEngines objective and timely stock reports. ResearchPool now features highquality coverage from 23 different research providers. With the addition of
ValuEngine, our stock coverage includes more than 5,200 companies whose shares
trade on 42 markets.
ValuEngine CEO Paul Henneman stated that ResearchPool is an innovative
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European investors. We are excited to join with ResearchPool as their platform reflects
our own commitment to provide timely, accurate, and objective financial research
to investors across the globe.

Apple Shares Enter Correction Territory

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.
It is rare to talk poorly of Apple shares, in fact, most of our discussions of the
company are typically of the "fanboy" variety. We know about the category-leading
products--indeed, Apple invented many of the categories! We know about the
massive market cap--and the stock's resultant ability to move whole indices, the
design wizards led by Jony Ive, the "can do no wrong" juggernaut of Cupertino,
untouched by rumours of Asian sweatshops, bad wifi antennae, bendable cases, etc.
And yet here we are: over the past few weeks the stock has shed lots of value,
and is now down more than 10% since it released quarterly earnings in July. It is now
pretty much flat for 2015. Sales of the "killer app" for Apple, as it were, the iPhone-responsible for more than 60% of the company's revenue, have not been quite as
impressive as investors have come to expect.
In addition, the jury is still out on the company's latest "must have" product-- that
consumers did not even know they needed to have until Apple made it--the Apple
Watch. Without mega growth in iPhones and a success with the Apple Watch, it is
pretty much a given that the company will not be able to keep up its impressive
record of growth and dominance.

As we have noted in the past, Apple simply cannot continue to perform as it

has because it is now far too large. The numbers just don't make sense when they get
so big. How much cash can they keep on hand? How much of the market can they
dominate in the face of cheaper Android phones, and--GASP-- a resurgent Microsoft
with its latest OS release Windows 10?
But, shares are not quite as expensive as they were the last time we saw a dip
like this. They certainly have more room to fall but the company remains the one, the
only, Apple after all. This may be just a temporary glitch. In the past, the stock has
shed 10% or more on numerous occasions only to come roaring back stronger than
ever--the last time this happened, in 2012, the shares lost almost half their value only
to come back 200%.
In addition, the company retains ample cash reserves to support the stock via a
buy back program if they so desire. And, that new model iPhone is coming soon. If
users leapfrog the iPhone 6 models for the newest and best smart phone from
Cupertino, then the stock may shake off this correction and soar yet again.

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 our website for more information and a free trial

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