July 1, 2016

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VALUATION WATCH: Overvalued stocks now make up 40.70% of our

stocks assigned a valuation and 14.47% of those equities are calculated to
be overvalued by 20% or more. Five sectors are calculated to be
overvalued.
MARKET OVERVIEW
Index

Started week

Friday AM

Change

Change %

ytd

DJIA

17355.21

17936

580.79

3.35%

2.93%

NASDAQ

4664.43

4844.18

179.75

3.85%

-3.26%

RUSSELL 2000

1123.81

1151.92

28.11

2.50%

1.41%

S&P 500

2031.45

2100.16

68.71

3.38%

2.75%

Summary of VE Stock Universe

Stocks Undervalued

59.30%

Stocks Overvalued

40.70%

Stocks Undervalued by 20%

27.90%

Stocks Overvalued by 20%

14.47%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

1.34%

-4.47%

-5.96%

2.91% undervalued

-2.27%

19.53

Auto-Tires-Trucks

1.29%

-6.23%

-6.30%

14.13% undervalued

-15.58%

11.42

Basic Materials

1.60%

3.75%

34.63%

9.72% overvalued

27.05%

29.49

Business Services

1.90%

-1.53%

8.98%

5.96% undervalued

-10.91%

22.71

Computer and Technology

1.27%

-2.52%

3.18%

4.10% undervalued

-8.73%

27.36

Construction

1.32%

-2.62%

16.90%

6.03% undervalued

-2.85%

20.67

Consumer Discretionary

1.50%

-1.98%

0.63%

5.60% undervalued

-10.54%

22.16

Consumer Staples

1.21%

0.65%

5.28%

10.19% overvalued

5.32%

24.15

Finance

1.35%

-2.49%

-0.16%

5.24% undervalued

-4.20%

15.83

Industrial Products

1.43%

-1.66%

3.86%

0.60% undervalued

-7.99%

21.41

Medical

1.46%

-1.90%

-7.44%

11.68% undervalued

-23.96%

26.93

Multi-Sector Conglomerates

0.84%

-1.95%

2.51%

0.92% overvalued

-6.78%

17.79

Oils-Energy

2.42%

2.20%

13.44%

1.56% overvalued

-27.48%

22.52

Retail-Wholesale

1.95%

-0.85%

-4.44%

12.40% undervalued

-14.75%

22.1

Transportation

1.63%

-4.25%

-2.01%

10.60% undervalued

-27.09%

13.04

Utilities

1.56%

1.42%

7.26%

8.42% overvalued

9.29%

24.12

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

USCR

US CONCRETE INC

THO

THOR INDS INC

60.91

3.02%

60.75%

64.74

-9.41%

15.03%

PGEM

PLY GEM HOLDING

14.57

2.42%

23.58%

DHI

D R HORTON INC

31.48

-1.54%

15.06%

DY

DYCOM INDS

89.76

-5.31%

52.52%

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

USCR

US CONCRETE INC

60.91

3.02%

60.75%

THO

THOR INDS INC

64.74

-9.41%

15.03%

PGEM

PLY GEM HOLDING

14.57

2.42%

23.58%

DHI

D R HORTON INC

31.48

-1.54%

15.06%

DY

DYCOM INDS

89.76

-5.31%

52.52%

Top-Five Construction Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

THO

THOR INDS INC

64.74

-9.41%

15.03%

DHI

D R HORTON INC

31.48

-1.54%

15.06%

DY

DYCOM INDS

89.76

-5.31%

52.52%

PHM

PULTE GROUP ONC

19.49

-13.60%

-3.28%

HW

HEADWATERS INC

17.94

-17.15%

-1.54%

Top-Five Construction Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

IBP

INSTALLED BUILD

36.29

44.28%

48.24%

TPC

TUTOR PERINI CP

23.55

34.61%

9.13%

BLD

TOPBUILD CORP

36.2

23.75%

N/A

UFPI

UNIVL FST PRODS

92.69

18.99%

78.15%

MTZ

MASTEC INC

22.32

13.29%

12.33%

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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
HP Inc.(HPQ) is the surviving entity following the November 2015 split of HewlettPackard Company into publicly traded entities - Hewlett Packard Enterprise
Company and HP Inc. The company's focus will be on the PC and printing products
and services. HP Inc. is headquartered in Palo Alto, California.
ValuEngine continues its HOLD recommendation on HP INC for 2016-06-30.
Based on the information we have gathered and our resulting research, we feel that
HP INC has the probability to ROUGHLY MATCH average market performance for the
next year. The company exhibits ATTRACTIVE P/E Ratio but UNATTRACTIVE Earnings
Growth Rate.
Read our Complete Detailed Valuation Report on HP Inc. HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

12.53

-0.17%

3-Month

12.65

0.80%

6-Month

12.96

3.26%

1-Year

12.30

-2.01%

2-Year

14.27

13.71%

3-Year

14.11

12.45%

Valuation & Rankings

Valuation

8.13% undervalued

Valuation Rank(?)

1-M Forecast Return

-0.17%

1-M Forecast Return Rank

56
37

12-M Return

-58.18%

Momentum Rank(?)

Sharpe Ratio

-0.42

Sharpe Ratio Rank(?)

28

5-Y Avg Annual Return

-20.55%

5-Y Avg Annual Rtn Rank

28

Volatility

49.49%

Volatility Rank(?)

Expected EPS Growth

-33.38%

EPS Growth Rank(?)

Market Cap (billions)

22.93

Size Rank

Trailing P/E Ratio

5.15

Trailing P/E Rank(?)

98

Forward P/E Ratio

7.73

Forward P/E Ratio Rank

90

PEG Ratio

n/a

PEG Ratio Rank

Price/Sales

0.31

Price/Sales Rank(?)

Market/Book

n/a

Market/Book Rank(?)

Beta

1.82

Beta Rank

Alpha

-0.91

Alpha Rank

10

37
8
95

n/a
89
n/a
14
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