December 4, 2015

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VALUATION WATCH: Overvalued stocks now make up 48.51% of our

stocks assigned a valuation and 17.39% 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 PM

Change

Change %

ytd

DJIA

17802.84

17708.2

-94.64

-0.53%

-0.64%

NASDAQ

5139.58

5099.52

-40.06

-0.78%

7.89%

RUSSELL 2000

1202.77

1176.5

-26.27

-2.18%

-2.34%

S&P 500

2090.95

2072.73

-18.22

-0.87%

0.67%

Summary of VE Stock Universe

Stocks Undervalued

51.49%

Stocks Overvalued

48.51%

Stocks Undervalued by 20%

23.40%

Stocks Overvalued by 20%

17.39%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

-0.57%

-0.99%

2.16%

2.56% overvalued

-2.07%

20.15

Auto-Tires-Trucks

-1.30%

-2.56%

-6.26%

8.13% undervalued

-8.85%

13.4

Basic Materials

-0.36%

-0.48%

-18.06%

12.58% undervalued

-23.95%

23.13

Business Services

-1.31%

-1.04%

2.63%

6.06% overvalued

-4.45%

24.68

Computer and Technology

-1.08%

-0.95%

2.56%

5.00% overvalued

-0.39%

28.59

Construction

-1.08%

-1.58%

1.74%

1.16% overvalued

-3.45%

20.98

Consumer Discretionary

-1.35%

-1.22%

-0.17%

1.47% undervalued

-5.04%

25.55

Consumer Staples

-0.48%

-0.54%

6.56%

6.95% overvalued

-0.37%

23.76

Finance

-0.98%

-1.30%

1.77%

2.33% overvalued

-3.14%

16.32

Industrial Products

-1.05%

-1.59%

-7.02%

1.08% undervalued

-9.35%

18.8

Medical

-2.09%

-2.06%

3.16%

3.80% overvalued

1.59%

27.74

Multi-Sector Conglomerates

-0.80%

-1.25%

-9.61%

4.75% overvalued

-10.46%

17.63

Oils-Energy

-0.73%

-2.96%

-24.52%

8.58% undervalued

-38.35%

23.49

Retail-Wholesale

-1.53%

-1.65%

-8.33%

5.72% undervalued

-8.50%

22.76

Transportation

-1.36%

-2.40%

-14.87%

10.75% undervalued

-21.63%

13.7

Utilities

-0.69%

-1.27%

-6.84%

2.49% undervalued

-9.14%

21.97

Sector TalkTransportation
Below, we present the latest data on leading Transportation Sector stocks from
our Professional Stock Analysis Service. These results were filtered by market price
and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Transportation Sector Stocks--Short-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

TNK

TEEKAY TANKERS

7.23

-22.78%

57.52%

DHT

DHT HOLDINGS

7.8

-13.25%

27.24%

NNA

NAVIOS MARI ACQ

3.44

-10.99%

18.62%

ASC

ARDMORE SHIPPIN

12.44

N/A

29.18%

VLRS

CONTROLADORA VL

17.5

N/A

117.39%

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

TNK

TEEKAY TANKERS

7.23

-22.78%

57.52%

DHT

DHT HOLDINGS

7.8

-13.25%

27.24%

NNA

NAVIOS MARI ACQ

3.44

-10.99%

18.62%

ASC

ARDMORE SHIPPIN

12.44

N/A

29.18%

VLRS

CONTROLADORA VL

17.5

N/A

117.39%

Top-Five Transportation Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

TNK

TEEKAY TANKERS

7.23

-22.78%

57.52%

JBLU

JETBLUE AIRWAYS

24.7

-9.80%

66.67%

ALK

ALASKA AIR GRP

80.55

-7.37%

41.91%

DAL

DELTA AIR LINES

48.22

-11.90%

7.75%

ALGT

ALLEGIANT TRAVL

173.07

-20.31%

23.28%

Top-Five Transportation Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

YRCW

YRC WORLDWD INC

15.68

300.00%

-34.53%

TDW

TIDEWATER INC

8.94

62.67%

-72.88%

LFL

LATAM AIRLINES

5.37

43.70%

-54.26%

ATSG

AIR TRANSPT SVC

9.4

34.31%

17.65%

HTLD

HEARTLAND EXP

17.81

28.76%

-32.26%

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we are offering a FREE DOWNLOAD of one of our Stock Reports
General Electric Company (GE) operates as a technology and financial
services company. Its segments include Energy Infrastructure, Aviation, Healthcare,
Transportation, Home & Business Solutions and GE Capital. The company's Energy
Infrastructure segment offers wind turbines; gas and steam turbines and generators.
Its Aviation segment offers jet engines, turboprop and turbo shaft engines, aerospace
systems and equipment. Its Healthcare segment provides medical imaging and
information technologies, medical diagnostics, patient monitoring systems. Its
Transportation segment provides drive technology solutions to various industries. Its
Home and Business Solutions segment provides home appliances; lighting products,
plant automation, hardware, software, and embedded computing systems. Its GE
Capital segment offers commercial loans and leases, fleet management, financial
programs, credit cards, personal loans and other financial services. General Electric
Company is headquartered in Fairfield, Connecticut.
ValuEngine continues its HOLD recommendation on GENL ELECTRIC for 2015-1203. Based on the information we have gathered and our resulting research, we feel
that GENL ELECTRIC has the probability to ROUGHLY MATCH average market
performance for the next year. The company exhibits ATTRACTIVE Company Size but
UNATTRACTIVE Book Market Ratio.
Read our Complete Detailed Valuation Report on General Electric HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

30.07

0.12%

3-Month

30.48

1.49%

6-Month

31.81

5.92%

1-Year

30.48

1.49%

2-Year

37.62

25.28%

3-Year

41.00

36.52%

Valuation & Rankings

Valuation

34.84% overvalued

Valuation Rank(?)

1-M Forecast Return

0.12%

1-M Forecast Return Rank

12-M Return

13.84%

Momentum Rank(?)

Sharpe Ratio

0.65

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

12.75%

5-Y Avg Annual Rtn Rank

Volatility

19.65%

Volatility Rank(?)

Expected EPS Growth

3.64%

EPS Growth Rank(?)

Market Cap (billions)

302.02

Size Rank

Trailing P/E Ratio

20.48

Trailing P/E Rank(?)

Forward P/E Ratio

19.76

Forward P/E Ratio Rank

PEG Ratio

5.63

PEG Ratio Rank

Price/Sales

2.22

Price/Sales Rank(?)

Market/Book

6.75

Market/Book Rank(?)

Beta

1.27

Beta Rank

Alpha

0.11

Alpha Rank

9
60
80
87
82
75
29
100
56
29
6
40
17
29
78

What's Hot--Sears Posts Poor Results

Sears Holdings Corporation (SHLD), the parent of Kmart and Sears, Roebuck
and Co., is the leading home appliance retailer in North America and is a retail sales
leader in tools, lawn and garden, home electronics, and automotive repair and
maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and
a broad apparel offering, including such well-known labels as Lands' End, Jaclyn
Smith and Joe Boxer, as well as the Apostrophe and Covington brands.
Yesterday, Sears reported Q3 earnings results for 2015 and they were not good.
Sears reported a loss of $454 million, or $4.26 a share, compared with a loss of $548
million, or $5.15, a year earlier. Adjusted for significant items, Sears would have

reported a net loss attributable to Holdings' shareholders of $305 million ($2.86 loss per
diluted share) for the quarter compared to a net loss attributable to Holdings'
shareholders of $288 million ($2.71 loss per diluted share) in the prior year quarter.
Kmart and Sears Domestic comparable store sales declined 7.5% and 9.6%,
respectively, in the third quarter of 2015 with more than half of the decline coming
from declines in apparel and consumer electronics. Revenues decreased
approximately $1.5 billion to $5.8 billion for the quarter ended October 31, 2015,
compared to revenues of $7.2 billion for the quarter ended November 1, 2014.
Edward S. Lampert, Holdings' Chairman and Chief Executive Officer, said
We remain focused on restoring Sears Holdings to profitability by
concentrating on our best stores, rewarding our best members and pursuing
our best categories through innovative solutions to product and service
offerings. Through deliberate strategic actions, notably with respect to our
promotional design and marketing spend, we have made meaningful
progress in our transformation and reported a fifth consecutive quarter of
improved year-over-year results. As expected, the results of these actions
have led to comparable store sales declines despite an increase in
profitability. At the same time, we recognize a lot of work remains and we
have brought in a number of experienced leaders to drive our business
forward with a plan to win as a member-centric integrated retailer. As we
head into the fourth quarter, we have intensified our focus on our product
offerings and promotions in order to enhance member engagement and
provide our members with the best experience possible throughout the
holiday shopping season.
We have been down on this stock for a very long time. For the most part, we
have had it ranked a SELL or STRONG SELL since January, 2014. It's tough to get a
sense of what this means for retail in general given the fact that Sears has been in
trouble for a very long time now. They have been unable to make the transition
necessary to compete with the Amazons and Targets and Wal-Marts of the world and
it is tough to figure out why customers would seek them out.
They have yet to recover from the self-inflicted disaster caused by the reign of
CEO and hedge-fund guru Lampert. Since Lampert took over in 2005, the trend is
clear, and it is not pretty. So, we find little here to use as an evaluation of the
broaderretail sector, the US economy in general, consumer confidence and
spending, the overall holiday shopping potential, etc.

If anything, we think is yet another case of a so-called financial "genius" getting

in over his head and attempting to apply ideological solutions some place they don't
belong--and wrecking a storied company in the process. Like JCPenney, this
company is struggling, and we don't see the end game or the recovery coming
anytime soon.
ValuEngine continues its STRONG SELL recommendation on SEARS HLDG CP for
2015-12-03. Based on the information we have gathered and our resulting research,
we feel that SEARS HLDG CP has the probability to UNDERPERFORM average market
performance for the next year. The company exhibits UNATTRACTIVE P/E Ratio and
Earnings Growth Rate.

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