EDITOR’S NOTE: We will be on a limited publication schedule later this month. Bulletins will be reduced the weeks of August 20-24 (we will publish M-W) and September 3-7 (we will publish W-F). There will be no bulletins the week of August 27-31. We will return to our normal publication schedule the week of September 10th.
This week, we provide top-five ranked VE data for our Business Services Sector stocks. We take a look at our latest data on John Deere $DE and provide a free download link for our stock report on the company.
VALUATION WATCH: Overvalued stocks now make up 50.09% of our stocks assigned a valuation and 20.27% of those equities are calculated to be overvalued by 20% or more. Eleven sectors are calculated to be overvalued.
ValuEngine Index Overview
| Index | Week Open | Friday PM | Change | % Change | YTD |
| DJIA | 25327.19 | 25683.97 | 356.78 | 1.41% | 3.90% |
| NASDAQ | 7848.00 | 7818.44 | -29.56 | -0.38% | 13.26% |
| RUSSELL 2000 | 1686.81 | 1692.22 | 5.41 | 0.32% | 10.21% |
| S&P 500 | 2835.46 | 2851.46 | 16.00 | 0.56% | 6.65% |
ValuEngine Market Overview
| Summary of VE Stock Universe | |
| Stocks Undervalued | 50.09% |
| Stocks Overvalued | 49.91% |
| Stocks Undervalued by 20% | 20.51% |
| Stocks Overvalued by 20% | 20.27% |
ValuEngine Sector Overview
| Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio |
| Computer and Technology | 0.48% | 1.08% | 7.38% | 13.65% overvalued | 26.28% | 31.61 |
| Aerospace | 0.54% | -1.49% | 6.97% | 13.15% overvalued | 18.17% | 26.45 |
| Medical | 0.82% | -0.05% | 14.57% | 11.00% overvalued | 42.76% | 29.82 |
| Retail-Wholesale | -0.08% | -0.63% | 5.06% | 9.55% overvalued | 29.37% | 24.63 |
| Business Services | 0.71% | 0.81% | 10.86% | 9.00% overvalued | 22.58% | 24.74 |
| Multi-Sector Conglomerates | 0.54% | -2.00% | -2.96% | 6.81% overvalued | 6.35% | 20.18 |
| Consumer Staples | 0.56% | -1.13% | -1.74% | 5.46% overvalued | 10.25% | 24.57 |
| Consumer Discretionary | 0.35% | -0.23% | 2.92% | 5.17% overvalued | 17.71% | 26.86 |
| Utilities | 1.15% | 1.45% | -3.18% | 4.96% overvalued | -3.47% | 19.94 |
| Finance | 0.62% | 0.02% | 2.39% | 2.97% overvalued | 7.74% | 17.92 |
| Auto-Tires-Trucks | 0.61% | -1.10% | -3.82% | 2.26% overvalued | 3.97% | 12.67 |
| Transportation | 0.62% | -1.39% | -1.60% | 0.49% undervalued | 13.01% | 18.69 |
| Industrial Products | 0.66% | -0.97% | 2.64% | 0.67% undervalued | 17.74% | 24.31 |
| Construction | 1.16% | -2.19% | -0.41% | 5.90% undervalued | 15.28% | 20.95 |
| Basic Materials | 0.28% | -4.81% | 0.48% | 13.79% undervalued | -3.62% | 19.86 |
| Oils-Energy | 0.62% | -3.42% | 4.90% | 15.37% undervalued | 18.96% | 23.05 |
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Sector Talk–Business Services
Below, we present the latest data on Business Services stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category. We applied some basic liquidity criteria–share price greater than $3 and average daily volume in excess of 100k shares.
Top-Five Business Services Stocks–Short-Term Forecast Returns
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| RCM | R1 RCM INC | 8.75 | 147.97% | 171.74% |
| TISI | TEAM INC | 24.25 | 45.87% | 118.47% |
| GDOT | GREEN DOT CP-A | 84.75 | 49.01% | 80.51% |
| SPSC | SPS COMMERCE | 93.72 | 34.83% | 60.04% |
| RHI | ROBT HALF INTL | 78.09 | 47.26% | 78.12% |
Top-Five Business Services Stocks–Momentum
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| GDS | GDS HOLDINGS | 30.94 | N/A | 238.88% |
| SSTI | SHOTSPOTTER INC | 39.14 | N/A | 223.20% |
| NEWA | NEWATER TECHNLG | 25.06 | N/A | 172.69% |
| RCM | R1 RCM INC | 8.75 | 147.97% | 171.74% |
| NSP | INSPERITY INC | 112.1 | 10.30% | 170.28% |
Top-Five Business Services Stocks–Composite Score
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| FCN | FTI CONSULTING | 77.1 | 12.39% | 135.42% |
| MA | MASTERCARD INC | 203.6 | 12.09% | 53.81% |
| CPRT | COPART INC | 60.82 | 6.34% | 88.71% |
| WEX | WEX INC | 182.44 | 10.38% | 75.83% |
| SPGI | S&P GLOBAL INC | 202.69 | 9.58% | 33.11% |
Top-Five Business Services Stocks–Most Overvalued
| Ticker | Name | Mkt Price | Valuation (%) | Last 12-M Return (%) |
| RCM | R1 RCM INC | 8.75 | 147.97% | 171.74% |
| GDOT | GREEN DOT CP-A | 84.75 | 49.01% | 80.51% |
| RHI | ROBT HALF INTL | 78.09 | 47.26% | 78.12% |
| WNS | WNS HLDGS-ADR | 51.45 | 46.15% | 46.79% |
| TISI | TEAM INC | 24.25 | 45.87% | 118.47% |
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
John Deere Company (DE) is an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment. John Deere has developed a strategy to grow and sustain its successful global business. John Deere has capitalized on the opportunities presented by increasing population, prosperity, and urbanization. Today, broad trends based on population and income growth, especially in developing nations, are driving agricultural output and infrastructure investment. Further, technological advances and agricultural mechanization are expanding existing markets and opening new ones.
VALUENGINE RECOMMENDATION: ValuEngine continues its HOLD recommendation on DEERE & CO for 2018-08-16. Based on the information we have gathered and our resulting research, we feel that DEERE & CO has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.
You can download a free copy of detailed report on John Deere Company (DE) from the link below.
Read our Complete Rating and Forecast Report HERE.
| ValuEngine Forecast | ||
| Target Price* | Expected Return | |
|---|---|---|
| 1-Month | 136.93 | -0.31% |
| 3-Month | 134.75 | -1.89% |
| 6-Month | 132.88 | -3.26% |
| 1-Year | 132.30 | -3.67% |
| 2-Year | 129.89 | -5.43% |
| 3-Year | 131.60 | -4.19% |
| Valuation & Rankings | |||
| Valuation | 9.28% undervalued | Valuation Rank(?) | 68 |
| 1-M Forecast Return | -0.31% | 1-M Forecast Return Rank | 26 |
| 12-M Return | 8.47% | Momentum Rank(?) | 55 |
| Sharpe Ratio | 0.56 | Sharpe Ratio Rank(?) | 80 |
| 5-Y Avg Annual Return | 11.11% | 5-Y Avg Annual Rtn Rank | 77 |
| Volatility | 19.82% | Volatility Rank(?) | 68 |
| Expected EPS Growth | 25.26% | EPS Growth Rank(?) | 60 |
| Market Cap (billions) | 46.63 | Size Rank | 98 |
| Trailing P/E Ratio | 15.63 | Trailing P/E Rank(?) | 73 |
| Forward P/E Ratio | 12.48 | Forward P/E Ratio Rank | 66 |
| PEG Ratio | 0.62 | PEG Ratio Rank | 54 |
| Price/Sales | 1.39 | Price/Sales Rank(?) | 60 |
| Market/Book | 8.42 | Market/Book Rank(?) | 18 |
| Beta | 0.89 | Beta Rank | 42 |
| Alpha | 0.01 | Alpha Rank | 65 |
ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
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Steve Hach
Senior Editor
ValuEngine.com
