December 16, 2016

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VALUATION WARNING: Overvalued stocks now make up 65.89% of our

stocks assigned a valuation and 34.16% 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

19770.2

19866.41

96.21

0.49%

14.01%

NASDAQ

5428.22

5445.45

17.23

0.32%

8.75%

RUSSELL 2000

1387.78

1377.59

-10.19

-0.73%

21.28%

S&P 500

2258.83

2258.76

-0.07

0.00%

10.51%

Summary of VE Stock Universe

Stocks Undervalued

34.11%

Stocks Overvalued

65.89%

Stocks Undervalued by 20%

15.73%

Stocks Overvalued by 20%

34.16%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

0.19%

-0.79%

12.09%

16.18% overvalued

12.76%

19.66

Auto-Tires-Trucks

0.43%

2.30%

13.04%

8.90% overvalued

24.16%

14.84

Basic Materials

-0.79%

0.68%

53.60%

13.44% overvalued

64.67%

26.5

Business Services

0.48%

2.17%

26.14%

12.74% overvalued

5.98%

23.99

Computer and Technology

0.81%

1.99%

22.63%

12.87% overvalued

11.27%

29.82

Construction

-0.03%

1.90%

36.83%

14.00% overvalued

24.22%

20.35

Consumer Discretionary

-0.25%

2.00%

12.44%

7.46% overvalued

16.88%

24.07

Consumer Staples

0.17%

1.88%

9.67%

6.15% overvalued

9.23%

24

Finance

0.18%

2.56%

17.16%

16.67% overvalued

13.97%

18.13

Industrial Products

0.14%

2.27%

27.29%

22.08% overvalued

24.11%

25.15

Medical

0.52%

0.09%

0.66%

3.71% undervalued

-7.32%

27.91

Multi-Sector Conglomerates

-0.52%

2.40%

13.37%

21.01% overvalued

14.51%

19.23

Oils-Energy

0.05%

3.06%

30.49%

19.21% overvalued

28.84%

25.31

Retail-Wholesale

0.18%

1.74%

4.98%

10.37% overvalued

7.60%

23.78

Transportation

1.29%

2.88%

21.42%

17.68% overvalued

7.47%

18.76

Utilities

0.18%

1.86%

15.10%

9.41% overvalued

19.89%

21.89

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

WAIR

WESCO AIRCRAFT

15.35

-2.39%

25.92%

SPR

SPIRIT AEROSYS

59.08

7.38%

22.24%

BEAV

B/E AEROSPACE

59.93

7.57%

43.82%

HII

HUNTINGTON INGL

179.69

23.34%

41.53%

HEI.A

HEICO CORP-A

63.9

N/A

46.16%

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

ARTX

AROTECH CORP

3.8

44.20%

107.65%

KTOS

KRATOS DEFENSE

7.18

56.62%

82.70%

AIR

AAR CORP

37.15

62.97%

64.02%

CW

CURTISS WRIGHT

102.4

23.27%

53.22%

HEI

HEICO CORP

76.55

16.85%

54.30%

Top-Five Aerospace Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

SPR

SPIRIT AEROSYS

59.08

7.38%

22.24%

WAIR

WESCO AIRCRAFT

15.35

-2.39%

25.92%

BEAV

B/E AEROSPACE

59.93

7.57%

43.82%

HII

HUNTINGTON INGL

179.69

23.34%

41.53%

TGI

TRIUMPH GRP INC

27.05

-41.22%

-21.80%

Top-Five Aerospace Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

AIR

AAR CORP

37.15

62.97%

64.02%

KTOS

KRATOS DEFENSE

7.18

56.62%

82.70%

LLL

L-3 COMM HLDGS

158.08

49.50%

32.31%

ARTX

AROTECH CORP

3.8

44.20%

107.65%

LMT

LOCKHEED MARTIN

250.65

40.88%

16.67%

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
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ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

379.41

-0.77%

3-Month

376.05

-1.65%

6-Month

370.40

-3.13%

1-Year

347.08

-9.22%

2-Year

396.34

3.66%

3-Year

414.18

8.32%

Valuation & Rankings

Valuation

11.00% overvalued

Valuation Rank(?)

1-M Forecast Return

-0.77%

1-M Forecast Return Rank

11

12-M Return

-31.09%

Momentum Rank(?)

14

49

Sharpe Ratio

0.13

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

4.18%

5-Y Avg Annual Rtn Rank

Volatility

31.69%

Volatility Rank(?)

Expected EPS Growth

298.03%

EPS Growth Rank(?)

95

Market Cap (billions)

11.86

Size Rank

91

Trailing P/E Ratio

174.06

Trailing P/E Rank(?)

Forward P/E Ratio

43.73

Forward P/E Ratio Rank

PEG Ratio

0.58

PEG Ratio Rank

Price/Sales

3.07

Price/Sales Rank(?)

Market/Book

8.36

Market/Book Rank(?)

Beta

0.62

Beta Rank

Alpha

-0.41

Alpha Rank

61
62
52

33
9
57
34
16
60
11

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