The ValuEngine valuation warning continues with 77.5% of all stocks being overvalued, 43.1 by 20% or more. 15 of 16 sectors are overvalued 13 by double-digit percentages, nine by more than 21%.
The finance sector is 19.5% overvalued with an equal-weight rating. 80.9% of the 3061 stocks in this sector have hold ratings.
The medical sector is 21.3% overvalued with an equal-weight rating. 58.5% of the 791 stocks in this sector have hold ratings.
The computer and technology sector is 24.8% overvalued with an overweight rating. Of the 1160 stocks in this sector 47.5% have buy or strong buy ratings.
The construction sector is 14.7% overvalued with an underweight rating. Of the 160 stocks in this sector 56.3% have sell or strong sell ratings.
The retail-wholesale sector is 25.9% overvalued with an overweight rating. Of the 351 stocks in this sector 80.3% have buy or strong buy ratings.
The transportation sector is 24.4% overvalued with an 'avoid-source of funds' rating. Of the 178 stocks in this sector 74.7% have sell or strong sell ratings.
The utilities sector is 9.8% overvalued with an overweight rating. Of the 212 stocks in this sector 90.1% have buy or strong buy ratings.
Three of the 12 stocks in today's table have buy ratings; eight have hold ratings, and one has a sell rating. Two stocks are undervalued by 4.1% and 12.9%, 10 stocks are overvalued by 9.5% to 39.7%. One stock is down 23.9% over the last 12 months, two are up by just 3.5% and 4.1%, eight are up by 18.0% to 46.9% and one is up a mammoth 144.9%. Two stocks are below their 200-day simple moving average with 10 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.
Chipotle Mexican Grill
Fifth Third Bank
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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