The ValuEngine valuation warning continues with 78.4% of all stocks being overvalued, 46.9% by 20% or more. Also, 15 of 16 sectors are overvalued, all by double-digit percentages, 11 by 21% to 27.4%.
The aerospace sector is 23.3% overvalued with an underweight rating. 67.6% of the 74 stocks in this sector have sell or strong sell ratings.
The industrial products sector is 22.9% overvalued with an underweight rating. 42.1% of the 347 stocks in this sector have sell or strong cell ratings.
The medical sector is 22.0% overvalued with an equal-weight rating. 59.2% of the 784 stocks in this sector have hold ratings.
The retail-wholesale sector is 27.4% overvalued with an overweight rating. 81.7% of the 349 stocks in this sector have buy or strong buy ratings.
The transportation sector is 26.1% overvalued with an 'avoid-source of funds rating. 75.6% of the 176 stocks in this sector have sell or strong cell ratings.
The utilities sector is 11.2% overvalued with an overweight rating. 90.1% of the 212 stocks in this sector have buy or strong buy ratings.
Four of the nine stocks in today's table have buy ratings, three have hold ratings and two have sell ratings. One is undervalued by 24% and three are overvalued by 26.8% to 29.8%. Only two stocks are below their 200-day SMAs with seven above which reflects the risk of reversion to the mean.
Reading the Table
OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.
Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.
Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.
Value Level: Price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.
Risky Level: Price at which to enter a GTC limit order to sell on strength.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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