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Steve Hach
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Steve Hach is the Senior Editor at ValuEngine.com, a Newtown, Pennsylvania-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 7000 US, Japanese, and Canadian, and other foreign stocks. Hach utilizes... More
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  • 3M Boosts Profits, ValuEngine Still Rates It A HOLD
    MMMh...

    --3M Boosts Profits, ValuEngine Still Rates it a HOLD

    3M Company is a diversified technology company with leading positions in consumer and office; display and graphics; electronics and telecommunications; health care; industrial; safety, security and protection services; transportation and other businesses. They are an integrated enterprise characterized by substantial intercompany cooperation in research, manufacturing and marketing of products.

    3M is another earnings week success story. The company posted excellent numbers today and provided a nice beat with Q3 profits up almost six percent. CEO Inge Thulin noted that much of the good news was based on US sales, where a strong economy helped product lines related to auto, aircraft, and electronic manufacturing. She also noted a boost from the sale of the company's protective dust and respiratory masks.

    ValuEngine continues its HOLD recommendation on 3M CO for 2014-10-22. Based on the information we have gathered and our resulting research, we feel that 3M 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.

    Below is today's data on MMM:


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month138.63-0.23%
    3-Month138.25-0.51%
    6-Month138.33-0.45%
    1-Year135.17-2.72%
    2-Year149.357.49%
    3-Year118.59-14.65%

     















    Valuation & Rankings
    Valuation11.89% overvaluedValuation Rank(?) 24
    1-M Forecast Return-0.23%1-M Forecast Return Rank 33
    12-M Return12.24%Momentum Rank(?) 74
    Sharpe Ratio0.76Sharpe Ratio Rank(?) 89
    5-Y Avg Annual Return13.04%5-Y Avg Annual Rtn Rank 77
    Volatility17.24%Volatility Rank(?) 87
    Expected EPS Growth9.07%EPSGrowth Rank(?) 32
    Market Cap (billions)90.91Size Rank 100
    Trailing P/E Ratio19.09Trailing P/E Rank(?) 59
    Forward P/E Ratio17.50Forward P/E Ratio Rank 35
    PEG Ratio2.11PEG Ratio Rank 16
    Price/Sales2.89Price/Sales Rank(?) 32
    Market/Book10.31Market/Book Rank(?) 12
    Beta1.11Beta Rank 46
    Alpha-0.01Alpha Rank 65

    ValuEngine Market Overview

     

     

     

     

     

    Summary of VE Stock Universe
    Stocks Undervalued51.97%
    Stocks Overvalued48.03%
    Stocks Undervalued by 20%18.59%
    Stocks Overvalued by 20%13.29%

     

    ValuEngine Sector Overview

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SectorChangeMTDYTDValuationLast 12-MReturnP/E Ratio
    Consumer Staples-1.24%-0.01%-0.15%6.73% overvalued5.66%23.05
    Multi-Sector Conglomerates-0.77%-2.63%-3.00%6.18% overvalued0.40%21.18
    Retail-Wholesale-1.18%-0.63%-7.39%4.67% overvalued-3.77%23.54
    Medical-0.68%-0.06%8.36%4.49% overvalued12.33%29.61
    Consumer Discretionary-0.64%-1.37%-6.12%4.40% overvalued-1.14%26.91
    Finance-0.62%-0.22%1.77%4.26% overvalued3.15%17.20
    Transportation-1.16%-1.88%3.22%4.25% overvalued11.25%19.04
    Utilities-0.95%-0.16%5.08%3.64% overvalued4.17%21.03
    Aerospace-0.80%-4.08%-5.24%2.58% overvalued12.22%20.61
    Computer and Technology-1.45%-4.40%-1.82%1.84% overvalued0.40%30.18
    Business Services-0.64%0.03%-1.85%0.24% overvalued2.05%24.23
    Industrial Products-0.98%-1.90%-6.13%2.05% undervalued-0.01%22.02
    Auto-Tires-Trucks-1.11%-4.27%-5.66%3.70% undervalued-4.29%15.71
    Construction-0.98%-0.17%-3.97%6.41% undervalued-0.08%23.85
    Oils-Energy-2.14%-9.74%3.53%9.09% undervalued-8.20%24.16
    Basic Materials-1.61%-3.95%-4.59%9.23% undervalued-7.07%25.02

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: MMM
    Oct 23 2:03 PM | Link | Comment!
  • Boeing Posts Great Numbers, Rides Efficient New Passenger Jet Boom

    VALUATION WATCH IS OFF: Undervalued stocks now make up 54.32% of our stocks assigned a valuation and 18.5% of those equities are calculated to be undervalued by 20% or more. Seven sectors are calculated to be undervalued--two by double digits.

    Boeing Going Boing?

    --Boeing Posts Great Numbers, Rides Efficient New Passenger Jet Boom

    The Boeing Company (NYSE:BA) is one of the world's major aerospace firms. The company operates in three principal segments: commercial airplanes; military aircraft and missiles; and space and communications.

    As the latest round of earnings progresses this week, Boeing has posted some great numbers. The company reported a profit of @ $1.36 billion or $1.86/share--and increase over last year's Q3 figure of $1.51/share. The company reported a 17% increase in earnings for Q3. And, better yet, the company also reported a record backlog of orders thus indicating that the good numbers may be an ongoing trend.

    The Wall Street Journal notes that Boeing is boosting its sales thanks to high demand from China as well as an overall move towards newer, more fuel-efficient aircraft designed to mitigate the impact of higher fuel costs. However, all the news isn't golden for the company. US budget cuts at the Pentagon will trim some of the company's defense business. In 2003, defense spending accounted for 56% of Boeing's sales vs. 38% in 2013. They are lacking a big cash-cow military fighter aircraft at the moment--they lost that battle with Lockheed when the DoD decided to go with the F-35.

    ValuEngine continues its BUY recommendation on BOEING CO for 2014-10-21. Based on the information we have gathered and our resulting research, we feel that BOEING CO has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.

    Below is today's data on BA:


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month127.690.45%
    3-Month128.901.40%
    6-Month130.352.54%
    1-Year133.955.37%
    2-Year133.545.05%
    3-Year116.62-8.26%

     















    Valuation & Rankings
    Valuation4.20% undervaluedValuation Rank(?) 60
    1-M Forecast Return0.45%1-M Forecast Return Rank 82
    12-M Return4.65%Momentum Rank(?) 61
    Sharpe Ratio0.77Sharpe Ratio Rank(?) 90
    5-Y Avg Annual Return17.11%5-Y Avg Annual Rtn Rank 85
    Volatility22.13%Volatility Rank(?) 78
    Expected EPS Growth3.48%EPSGrowth Rank(?) 21
    Market Cap (billions)92.70Size Rank 100
    Trailing P/E Ratio15.81Trailing P/E Rank(?) 72
    Forward P/E Ratio15.28Forward P/E Ratio Rank 50
    PEG Ratio4.54PEG Ratio Rank 5
    Price/Sales1.05Price/Sales Rank(?) 66
    Market/Book15.35Market/Book Rank(?) 7
    Beta1.12Beta Rank 45
    Alpha-0.10Alpha Rank 51

    ValuEngine Market Overview

     

     

     

     

     

    Summary of VE Stock Universe
    Stocks Undervalued49.79%
    Stocks Overvalued50.21%
    Stocks Undervalued by 20%17.35%
    Stocks Overvalued by 20%13.82%

     

    ValuEngine Sector Overview

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SectorChangeMTDYTDValuationLast 12-MReturnP/E Ratio
    Consumer Staples0.89%1.16%1.11%5.20% overvalued3.27%23.33
    Multi-Sector Conglomerates1.33%-1.86%-2.28%3.99% overvalued-1.32%20.94
    Retail-Wholesale1.46%0.52%-6.43%3.28% overvalued-4.70%23.32
    Medical1.45%0.62%9.08%2.83% overvalued11.05%29.17
    Finance0.79%0.35%2.26%2.68% overvalued2.21%17.04
    Utilities0.78%0.76%6.00%2.61% overvalued3.51%20.84
    Consumer Discretionary1.02%-0.78%-6.01%2.47% overvalued-1.46%26.53
    Transportation2.35%-0.81%4.22%0.97% overvalued7.56%18.51
    Aerospace0.75%-3.32%-4.62%0.46% overvalued10.68%20.33
    Computer and Technology1.47%-3.13%-0.68%0.33% undervalued-0.99%30.09
    Business Services1.80%0.65%-1.38%1.93% undervalued0.40%23.81
    Industrial Products1.57%-1.16%-5.59%4.41% undervalued-1.99%21.50
    Auto-Tires-Trucks1.81%-3.32%-4.80%6.16% undervalued-5.98%15.40
    Construction1.42%0.76%-3.10%8.26% undervalued-1.43%23.46
    Basic Materials1.18%-2.50%-3.10%10.38% undervalued-7.81%24.72
    Oils-Energy1.56%-7.93%5.37%11.57% undervalued-9.74%23.64

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Oct 22 12:50 PM | Link | Comment!
  • Is Smaller Really Better? --Tech Giant Hewlett-Packard Announces Split Of Company

    VALUATION WATCH IS OFF: Overvalued stocks now make up 51% of our stocks assigned a valuation and 14.66% of those equities are calculated to be overvalued by 20% or more. Eleven sectors are calculated to be overvalued.

    Is Smaller Really Better?

    --Tech Giant Hewlett-Packard Announces Split of Compay

    Hewlett Packard (NYSE:HPQ) is one of the leading global providers of computing and imaging solutions and services for business and home. The company is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services. Its major businesses include Imaging and Printing Systems, Computing Systems and Information Technology Services.

    In effort to improve its competitive position, the company announced yesterday that it would split itself into two entities. One side, HP Incorporated, will focus on the current HP's computer and printer operations. The other side, to be known as Hewlett-Packard Enterprise, will focus on services sold to large enterprises such as software, consulting, storage, and servers. The issue doesn't seem to be the printers and such, the enterprise portion of the business is what seems to be holding the company back--of course, one can recall a few real issues on that consumer side--HP touchpad tablet debacle? Anyone? Anyone?

    CEO Meg Whitman voiced the usual justifications for executives searching for solutions via such plans: the move will make the company "nimble," more able to recognize and exploit opportunities, etc. But, as the Wall Street Journal notes today, Whitman's new enterprise company will be cut off from the ample resources the computer and printer business currently provides. How does one exploit opportunities and buy up promising new technology, talent, and ideas if one is strapped for ready cash when some big tech players are sitting on billions?

    So far, the market has blessed the move. HP shares jumped almost 5% on the news of the split in yesterday's trading.

    Meanwhile, ValuEngine continues its HOLD recommendation on Hewlett Packard for 2014-10-06. Based on the information we have gathered and our resulting research, we feel that Hewlett Packard has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Earnings Growth Rate.

    Below is today's data on HPQ:


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month36.920.14%
    3-Month37.190.86%
    6-Month37.732.32%
    1-Year37.491.67%
    2-Year46.3725.77%
    3-Year16.72-54.64%

     















    Valuation & Rankings
    Valuation33.02% overvaluedValuation Rank(?) 8
    1-M Forecast Return0.14%1-M Forecast Return Rank 61
    12-M Return76.16%Momentum Rank(?) 95
    Sharpe Ratio-0.16Sharpe Ratio Rank(?) 33
    5-Y Avg Annual Return-5.72%5-Y Avg Annual Rtn Rank 36
    Volatility34.66%Volatility Rank(?) 56
    Expected EPS Growth5.75%EPSGrowth Rank(?) 24
    Market Cap (billions)69.00Size Rank 99
    Trailing P/E Ratio9.93Trailing P/E Rank(?) 94
    Forward P/E Ratio9.39Forward P/E Ratio Rank 87
    PEG Ratio1.73PEG Ratio Rank 19
    Price/Sales0.62Price/Sales Rank(?) 80
    Market/Book2.39Market/Book Rank(?) 46
    Beta1.53Beta Rank 25
    Alpha0.28Alpha Rank 89

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: HPQ, technology
    Oct 07 2:52 PM | Link | Comment!
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