October 14, 2016

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VALUATION WATCH: Overvalued stocks now make up 47.09% of our

stocks assigned a valuation and 16.25% of those equities are calculated to
be overvalued by 20% or more. Eight sectors are calculated to be
overvalued.
MARKET OVERVIEW
Index

Started week

Friday AM

Change

Change %

ytd

DJIA

18135.85

18071.48

-64.37

-0.35%

3.71%

NASDAQ

5213.69

5233.92

20.23

0.39%

4.52%

RUSSELL 2000

1212.42

1210.36

-2.06

-0.17%

6.56%

S&P 500

2138.31

2131.59

-6.72

-0.31%

4.29%

Summary of VE Stock Universe

Stocks Undervalued

52.91%

Stocks Overvalued

47.09%

Stocks Undervalued by 20%

21.51%

Stocks Overvalued by 20%

16.25%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

-0.34%

-0.43%

2.50%

0.53% undervalued

4.26%

17.87

Auto-Tires-Trucks

-0.05%

-1.11%

6.61%

6.23% undervalued

9.20%

15.02

Basic Materials

-0.03%

-0.75%

45.57%

4.06% overvalued

49.18%

28.28

Business Services

-0.33%

-2.06%

12.32%

1.44% undervalued

-2.80%

24.33

Computer and Technology

-0.41%

-2.68%

15.18%

2.93% overvalued

4.91%

29.37

Construction

-0.87%

-1.85%

29.67%

5.62% undervalued

10.26%

19.8

Consumer Discretionary

-0.20%

-1.74%

7.82%

2.78% undervalued

0.40%

23.99

Consumer Staples

-0.60%

-2.30%

8.43%

0.96% overvalued

8.67%

24.56

Finance

-0.25%

-0.70%

6.48%

0.46% overvalued

2.69%

16.54

Industrial Products

-0.41%

-2.55%

15.68%

5.02% overvalued

11.03%

23.17

Medical

0.39%

-1.77%

1.06%

5.77% undervalued

-7.56%

26.09

Multi-Sector Conglomerates

-0.02%

-0.34%

7.32%

2.66% overvalued

-1.59%

20.94

Oils-Energy

0.36%

4.19%

37.25%

5.36% overvalued

-6.28%

26.71

Retail-Wholesale

-0.32%

-0.86%

-0.25%

6.00% undervalued

-4.29%

22

Transportation

0.17%

-0.44%

10.57%

2.80% undervalued

-12.39%

16.58

Utilities

-0.19%

-1.06%

9.98%

4.80% overvalued

10.90%

22.06

Sector TalkFinance
Below, we present the latest data on leading Finance 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 Finance Sector Stocks--Short-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

BDORY

BANCO DO BRASIL

8.94

N/A

110.35%

GGAL

GRUPO GALIC ADR

31.94

N/A

53.85%

CSAL

COMMUNICTNS S&L

30.14

N/A

47.82%

WRLD

WORLD ACCEPTANC

50.25

35.36%

62.04%

CANN

GENL CANNABIS

4.43

N/A

421.18%

Top-Five Finance Sector Stocks--Long-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

BDORY

BANCO DO BRASIL

8.94

N/A

110.35%

GGAL

GRUPO GALIC ADR

31.94

N/A

53.85%

CSAL

COMMUNICTNS S&L

30.14

N/A

47.82%

WRLD

WORLD ACCEPTANC

50.25

35.36%

62.04%

CANN

GENL CANNABIS

4.43

N/A

421.18%

Top-Five Finance Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

SNH

SENIOR HOUSING

21.66

-4.46%

29.16%

BNS

BANK OF NOVA SC

53.72

-3.71%

14.84%

BAP

CREDICORP LTD

151.67

-0.73%

31.89%

GOV

GOVT PPTYS INCM

20.78

-11.85%

16.87%

LXP

LEXINGTON PPTY

10.08

-6.75%

14.81%

Top-Five Finance Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

OCN

OCWEN FINL CORP

4.2

300.00%

-47.89%

OZM

OCH-ZIFF CAPTL

3.48

281.43%

-53.41%

TBBK

BANCORP BNK/THE

6.94

139.09%

-0.43%

CUZ

COUSIN PROP INC

8.03

85.14%

-19.30%

BSBR

BANCO SANT-ADS

7.87

62.22%

122.32%

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.

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ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

18.23

1.15%

3-Month

18.42

2.22%

6-Month

18.44

2.34%

1-Year

20.50

13.78%

2-Year

17.78

-1.35%

3-Year

14.68

-18.51%

Valuation & Rankings

Valuation

11.23% undervalued

Valuation Rank(?)

1-M Forecast Return

1.15%

1-M Forecast Return Rank

12-M Return

18.09%

Momentum Rank(?)

Sharpe Ratio

0.25

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

19.06%

5-Y Avg Annual Rtn Rank

Volatility

76.45%

Volatility Rank(?)

Expected EPS Growth

28.12%

EPS Growth Rank(?)

Market Cap (billions)

2.14

Size Rank

Trailing P/E Ratio

9.39

Trailing P/E Rank(?)

Forward P/E Ratio

7.33

Forward P/E Ratio Rank

PEG Ratio

0.33

PEG Ratio Rank

69
99
76
64
87
21
63
75
92
93
67

Price/Sales

2.30

Price/Sales Rank(?)

Market/Book

1.60

Market/Book Rank(?)

Beta

1.89

Beta Rank

13

Alpha

-0.32

Alpha Rank

17

42
60

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