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August 12, 2016

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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,
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VALUATION WATCH: Overvalued stocks now make up 48.24% of our


stocks assigned a valuation and 15.78% 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

18541.89

18572.29

30.40

0.16%

6.58%

NASDAQ

5223.54

5223.58

0.04

0.00%

4.32%

RUSSELL 2000

1231.32

1230.86

-0.46

-0.04%

8.36%

S&P 500

2183.76

2183.36

-0.40

-0.02%

6.82%

Summary of VE Stock Universe


Stocks Undervalued

51.76%

Stocks Overvalued

48.24%

Stocks Undervalued by 20%

21.50%

Stocks Overvalued by 20%

15.78%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

0.70%

1.27%

-1.43%

2.44% overvalued

-3.36%

19.33

Auto-Tires-Trucks

0.36%

2.70%

4.63%

8.86% undervalued

-3.50%

16.04

Basic Materials

0.20%

1.17%

54.21%

13.26% overvalued

61.05%

33.25

Business Services

0.31%

-0.32%

13.68%

2.93% undervalued

-2.62%

24.53

Computer and Technology

0.36%

0.98%

13.34%

0.22% overvalued

3.40%

30

Construction

-0.08%

0.11%

29.41%

0.98% undervalued

5.39%

21.23

Consumer Discretionary

0.61%

1.10%

8.35%

0.78% undervalued

-2.45%

23.61

Consumer Staples

0.31%

0.49%

9.71%

9.64% overvalued

7.79%

24.19

Finance

0.08%

1.22%

6.32%

0.37% undervalued

1.05%

16.28

Industrial Products

0.35%

2.01%

15.74%

7.07% overvalued

4.30%

22.98

Medical

0.14%

-0.66%

0.90%

9.00% undervalued

-16.87%

27.39

Multi-Sector Conglomerates

0.37%

1.50%

8.89%

10.44% overvalued

6.76%

20.62

Oils-Energy

0.93%

1.18%

15.47%

1.37% overvalued

-12.26%

24.55

Retail-Wholesale

1.25%

1.17%

2.30%

7.46% undervalued

-5.32%

22.23

Transportation

0.70%

0.10%

10.96%

5.75% undervalued

-19.83%

15.89

Utilities

0.18%

-1.58%

12.28%

4.32% overvalued

11.02%

22.38

Sector TalkConsumer Staples


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


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

OME

OMEGA PROTEIN

24.5

-5.83%

47.68%

TRNC

TRONC INC

15.17

N/A

25.48%

MDP

MEREDITH CORP

53.48

-9.05%

19.59%

TSN

TYSON FOODS A

74.57

9.10%

77.76%

HRL

HORMEL FOODS CP

36.43

-40.86%

20.51%

Top-Five Consumer Staples Sector Stocks--Long-Term Forecast Returns


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

OME

OMEGA PROTEIN

24.5

-5.83%

47.68%

TRNC

TRONC INC

15.17

N/A

25.48%

MDP

MEREDITH CORP

53.48

-9.05%

19.59%

TSN

TYSON FOODS A

74.57

9.10%

77.76%

HRL

HORMEL FOODS CP

36.43

-40.86%

20.51%

Top-Five Consumer Staples Sector Stocks--Composite Score


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

HRL

HORMEL FOODS CP

36.43

-40.86%

20.51%

RAI

REYNOLDS AMER

50.1

-40.32%

16.16%

DF

DEAN FOODS CO

17.53

-24.18%

4.53%

OME

OMEGA PROTEIN

24.5

-5.83%

47.68%

MDP

MEREDITH CORP

53.48

-9.05%

19.59%

Top-Five Consumer Staples Sector Stocks--Most Overvalued


Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

GCI

GANNETT CO INC

11.64

276.53%

-9.77%

SNMX

SENOMYX INC

3.74

102.95%

-49.73%

COT

COTT CORP QUE

16.99

77.81%

53.62%

ENR

ENERGIZER HLDGS

50.46

59.70%

22.12%

SNAK

INVENTURE FOODS

9.41

43.24%

6.81%

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.

What's Hot
Key Indices Set Simultaneous Records
We saw some great trading results this week, with major indices closing at alltime highs yesterday. The DOW, SP500, and NASDAQ all finished trading yesterday in
record territory. That's the first time this has happened since the last day of 1999. Many
equities are at or near their 52-week highs while far fewer are at or near their 52-week
lows. And, analysts say the current trading levels resemble the boom year we had in
2013.
This shows how far we have come since that doom and gloom in the aftermath
of that "Brexit" sell off in June. One hopes that investors were wary of calls for panic
selling at that time, because we have made up all that ground and then some.
This is even more significant because it has occurred in the "dog-days" of
Summer, when many have taken the advice to "sell in May and go away" in
expectations of the oft-occuring Summer market doldrums. With low yields on bonds,
equities remain the only game in town for those searching for yield. And the Fed has
helped by keeping its hand off of rates--for now.
Meanwhile, our overvaluation figure has crept up a bit, but at 48% overvalued
vs 52% undervalued it remains smack dab in the middle of "normal" range. Our
models do not see signs of a market that is too hot-yet.
When Wall St traders and investors get back to work at the end of this month
we could have prime conditions for another leg up and even more record-setting.
Let's hope that works our the way it should and that the Fed keeps its foot off the
brake for just a little bit longer.
We still want to see some employment growth and a fuller penetration of the
recovery down into the labor markets and worker paychecks. We also would like to
see some of the crazy uncertainty over the Fall election and the erratic personality of
potential POTUS Donald J. Trump eliminated.

Meanwhile, let's remind ourselves of the bigger picture once again. In 2009, at
the beginning of the Obama Administration, the common view in some circles was
that the US economy was heading for a disaster/full on depression and investors were
fools for staying in the market during the the full flower of the Bush economic disaster.
But, from that 666 SP500 inter-day low of March 9th of that year, we have seen
an historic rally. The SP500 is up almost 220% since then with other indices showing
similar gains. All those cries to "BUY GOLD BUY GUNS BUY SEEDS" were foolish.
This is yet another reminder to never let political views and ideological
shibboleths to get anywhere near your portfolio or your trading decisions. Slow and
steady is still the best advice. Rational investing over time wins the race. Timing is a
fool's game for most.

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
Cooper-Standard Holdings Inc. (CPS) operates as a supplier of systems and
components for the automotive industry. Its products include sealing and trim, fuel
and brake delivery, fluid transfer, thermal and emissions and anti-vibration systems.
The company markets its products directly to automotive original equipment
manufacturers, tier I and tier II suppliers, and non-automotive manufacturers. CooperStandard Holdings Inc. is headquartered in Novi, Michigan.
VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY
recommendation on COOPER-STANDARD for 2016-08-11. Based on the information
we have gathered and our resulting research, we feel that COOPER-STANDARD has
the probability to OUTPERFORM average market performance for the next year. The
company exhibits ATTRACTIVE P/E Ratio and Momentum.
Read our Complete Detailed Valuation Report on Cooper Standard HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

96.65

1.12%

3-Month

100.15

4.78%

6-Month

103.80

8.60%

1-Year

108.42

13.44%

2-Year

120.85

26.44%

3-Year

121.02

26.61%

Valuation & Rankings


Valuation

15.20% overvalued

Valuation Rank(?)

1-M Forecast Return

1.12%

1-M Forecast Return Rank

12-M Return

52.37%

Momentum Rank(?)

Sharpe Ratio

0.60

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

17.11%

5-Y Avg Annual Rtn Rank

Volatility

28.51%

Volatility Rank(?)

Expected EPS Growth

-1.00%

EPS Growth Rank(?)

Market Cap (billions)

1.64

Size Rank

Trailing P/E Ratio

8.97

Trailing P/E Rank(?)

Forward P/E Ratio

9.06

Forward P/E Ratio Rank

PEG Ratio

n/a

PEG Ratio Rank

Price/Sales

0.48

Price/Sales Rank(?)

Market/Book

3.59

Market/Book Rank(?)

Beta

0.68

Beta Rank

Alpha

0.29

Alpha Rank

21
99
91
86
89
60
22
72
93
87
n/a
83
33
61
89

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