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Steve Hach is the Senior Editor at ValuEngine.com, a Melbourne, Florida-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 8000 US, Canadian, and other foreign stocks. Hach utilizes ValuEngine's complex... More
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  • Budweiser Super Bowl Ad Falls Flat, Just Like Macro Beer Sales

    VALUATION WATCH: Overvalued stocks now make up 52.83% of our stocks assigned a valuation and 19.57% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued--with one at or near double digits.

    Not So Crafty
    --Budweiser Fumbles SuperBowl Commercial

    Anheuser-Busch (NYSE:BUD) is the leading global brewer and one of the world's top five consumer products companies. Their portfolio of well over 200 beer brands continues to forge strong connections with consumers. They invest the majority of their brand-building resources on their Focus Brands - those with the greatest growth potential such as global brands Budweiser, Stella Artois and Becks, alongside Leffe, Hoegaarden, Bud Light, Skol, Brahma, Antarctica, Quilmes, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Hasserder and Jupiler. In addition, the company owns a 50 percent equity interest in the operating subsidiary of Grupo Modelo, Mexico's leading brewer and owner of the global Corona brand.

    AB-InBev, like so many macro brewers, has been unable to address the problem of falling market share and popularity amongst young and old drinkers alike. Once a mainstay of the US market, AB-InBev's Budweiser is under assault from upstart craft brewers, whose segment keeps growing by leaps and bounds. In fact, in 2013 sales of craft beer exceeded those of Budweiser.

    In the past, BUD has responded by acquiring craft brewers and adding them to their stable of brands. However, this past weekend the company embarked on another path with its highly controversial Super Bowl commercial, "Brewed the Hard Way." The ad, replete with images of bearded, plaid-clad "hipster" craft-beer drinkers, essentially mocked both craft beer and craft- beer consumers.

    Reaction so far has been negative, with many analysts noting that AB's commercial even attacked a style of beer manufactured by its most recent craft acquisition, Elysian Brewing. This is doubly problematic given the fact that many craft drinkers refuse to indulge in a craft brewery's offerings--no matter how good in the past--once it is acquired by a large macro concern. Elysian Co-Founder Dick Cantwell noted that "it doesn't make our job any easier, and it certainly doesn't make me feel any better about a deal I didn't even want to happen. It's made a difficult situation even more painful."

    Judging from the SuperBowl ad, AB-InBev remains clueless as to how it should address the changing tastes and demographics of the US beer consumer. Making of fun of potential customers--as well as lost ones--has fallen flat, just like the sales of AB-InBevs flagship product.

    ValuEngine continues its HOLD recommendation on ANHEUSER-BUSCH InBev ADR for 2015-02-03. Based on the information we have gathered and our resulting research, we feel that ANHEUSER-BUSCH InBev ADR has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Price Sales Ratio.

    As a bonus to our Newsletter readers,
    we are offering a FREE DOWNLOAD of one of our Stock Reports

    Read our Complete Detailed Valuation Report on AB-InBev ADR HERE.

    Below is today's data on BUD:


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month125.870.26%
    3-Month125.950.32%
    6-Month126.500.75%
    1-Year129.423.08%
    2-Year143.5214.31%
    3-Year97.05-22.70%

     















    Valuation & Rankings
    Valuation4.46% overvaluedValuation Rank(?) 37
    1-M Forecast Return0.26%1-M Forecast Return Rank 70
    12-M Return33.12%Momentum Rank(?) 86
    Sharpe Ratio0.92Sharpe Ratio Rank(?) 93
    5-Y Avg Annual Return17.94%5-Y Avg Annual Rtn Rank 86
    Volatility19.40%Volatility Rank(?) 83
    Expected EPS Growth6.85%EPSGrowth Rank(?) 32
    Market Cap (billions)201.71Size Rank 100
    Trailing P/E Ratio23.21Trailing P/E Rank(?) 49
    Forward P/E Ratio21.72Forward P/E Ratio Rank 27
    PEG Ratio3.39PEG Ratio Rank 10
    Price/Sales4.31Price/Sales Rank(?) 22
    Market/Book3.52Market/Book Rank(?) 34
    Beta0.84Beta Rank 61
    Alpha0.15Alpha Rank 83

    ValuEngine Market Overview

     

     

     

     

     

    Summary of VE Stock Universe
    Stocks Undervalued52.83%
    Stocks Overvalued47.17%
    Stocks Undervalued by 20%19.57%
    Stocks Overvalued by 20%12.5%

     

    ValuEngine Sector Overview

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SectorChangeMTDYTDValuationLast 12-MReturnP/E Ratio
    Aerospace2.45%2.92%3.18%9.43% overvalued3.80%20.12
    Utilities1.94%3.70%1.28%4.21% overvalued12.59%22.97
    Medical0.62%1.31%3.19%3.67% overvalued5.43%31.90
    Consumer Staples0.89%1.75%1.07%1.22% overvalued9.25%24.09
    Multi-Sector Conglomerates1.18%2.41%2.32%0.98% overvalued8.86%19.01
    Computer and Technology1.23%1.92%0.89%0.82% overvalued-0.17%30.44
    Retail-Wholesale1.31%2.00%-1.71%0.41% overvalued9.05%26.71
    Finance1.13%2.07%-1.25%3.35% undervalued5.63%17.39
    Business Services1.72%2.76%-0.29%4.27% undervalued3.60%24.03
    Consumer Discretionary1.43%1.95%-0.95%4.49% undervalued-1.07%26.06
    Auto-Tires-Trucks2.02%3.21%1.09%7.14% undervalued1.75%14.69
    Industrial Products1.64%2.87%-1.35%8.54% undervalued-5.50%19.47
    Basic Materials1.11%2.05%1.29%9.46% undervalued-16.88%24.81
    Transportation1.08%2.01%-1.59%9.47% undervalued6.90%19.83
    Construction1.31%2.29%-1.27%12.75% undervalued-1.34%24.50
    Oils-Energy4.24%7.78%1.78%17.82% undervalued-27.70%19.09

    Tags: BUD
    Feb 04 5:10 PM | Link | Comment!
  • Chevron's Latest Data And Transportation Stocks Ranked And Rated

    Valuation Watch: Overvalued stocks now make up 44.17% of our stocks assigned a valuation and 13.93% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued--with three at or near double digits.

    ValuEngine Index Overview

     

     

     

     

     

    IndexWeek OpenFriday PMChange% ChangeYTD
    DJIA17668.1117323.37-344.74-1.95%-2.85%
    NASDAQ4752.364678.84-73.52-1.55%-1.00%
    RUSSELL 20001188.931175.88-13.05-1.10%-2.49%
    S&P 5002050.422010.16-40.26-1.96%-3.02%

     

    ValuEngine Market Overview

     

     

     

     

     

    Summary of VE Stock Universe
    Stocks Undervalued55.83%
    Stocks Overvalued44.17%
    Stocks Undervalued by 20%24.04%
    Stocks Overvalued by 20%13.93%

     

    ValuEngine Sector Overview

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SectorChangeMTDYTDValuationLast 12-MReturnP/E Ratio
    Aerospace0.49%1.24%1.24%11.49% overvalued-0.20%20.55
    Medical1.11%2.33%2.33%8.09% overvalued4.09%31.06
    Retail-Wholesale0.62%-2.15%-2.15%7.77% overvalued4.95%27.27
    Consumer Staples0.51%0.81%0.81%4.90% overvalued6.20%24.69
    Utilities0.76%-0.39%-0.39%3.13% overvalued11.05%22.42
    Multi-Sector Conglomerates0.50%0.68%0.68%0.73% overvalued2.10%20.27
    Computer and Technology0.61%-1.08%0.22%0.59% overvalued-2.86%30.24
    Consumer Discretionary0.72%-1.77%-1.77%0.57% undervalued-4.31%26.08
    Business Services0.78%-0.99%-0.99%2.90% undervalued0.87%24.51
    Finance0.49%-1.93%-1.93%3.32% undervalued3.83%17.36
    Transportation0.29%-1.96%-1.96%7.69% undervalued4.93%19.82
    Industrial Products0.87%-2.88%-2.88%10.57% undervalued-9.22%19.35
    Auto-Tires-Trucks0.39%-0.65%-0.65%11.11% undervalued-4.11%14.99
    Construction1.13%-2.31%-2.31%11.54% undervalued-5.23%23.83
    Basic Materials-0.41%-1.07%-1.09%12.08% undervalued-18.77%23.41
    Oils-Energy-0.44%-6.20%-6.20%25.46% undervalued-31.68%18.92

    ValuEngine Newsletters Latest Results

     

     

     

     

     

    VE NewsletterCurrent ResultsBenchmark*Last Month TotalBenchmark*Since InceptionBenchmark*
    Forecast MNS3.84-1.0112.545.0986.4929.54
    Dividend Stock-2.20-1.35-4.40-2.9214.1830.74
    Small Cap Stock-0.28-2.13-0.63-0.0923.7451.41
    View-2.96-0.373.032.50119.8282.18

    *NOTE: Benchmark for Forecast MNS for last month and inception is the MLSAX Long/Short Fund. Benchmark for Small Cap is the Russell 2000 Small Cap Index (RUT). Benchmark for current month Forecast MNS and VE View and VE Dividend for all timeframes is the S&P500.

    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

    Chevron (NYSE:CVX) is the fifth-largest integrated energy company in the world. Headquartered in San Ramon, California, and conducting business in approximately 180 countries, this highly competitive corporation is engaged in every aspect of the oil and natural gas industry, including exploration and production; refining, marketing and transportation; chemicals manufacturing and sales; and power generation.

    (click to enlarge)

    ValuEngine continues its HOLD recommendation on CHEVRON CORP for 2015-01-29. Based on the information we have gathered and our resulting research, we feel that CHEVRON CORP 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 Chevron:


     

     

     

     

     

     

    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month103.510.49%
    3-Month105.062.00%
    6-Month105.222.16%
    1-Year109.115.94%
    2-Year100.76-2.17%
    3-Year105.612.53%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Valuation & Rankings
    Valuation6.84% undervaluedValuation Rank(?) 58
    1-M Forecast Return0.49%1-M Forecast Return Rank 84
    12-M Return-11.21%Momentum Rank(?) 38
    Sharpe Ratio0.40Sharpe Ratio Rank(?) 72
    5-Y Avg Annual Return7.53%5-Y Avg Annual Rtn Rank 64
    Volatility19.04%Volatility Rank(?) 84
    Expected EPS Growth-60.14%EPSGrowth Rank(?) 5
    Market Cap (billions)195.59Size Rank 100
    Trailing P/E Ratio10.34Trailing P/E Rank(?) 90
    Forward P/E Ratio25.94Forward P/E Ratio Rank 18
    PEG Ration/aPEG Ratio Rank n/a
    Price/Sales0.88Price/Sales Rank(?) 71
    Market/Book1.28Market/Book Rank(?) 68
    Beta1.14Beta Rank 44
    Alpha-0.23Alpha Rank 33

    As a bonus to our Newsletter readers,
    we are offering a FREE DOWNLOAD of one of our Stock Reports

    Read our Complete Detailed Valuation Report on Chevron HERE.

    Sector Talk--Transportation

    Below, we present the latest data on Transportation stocks from our Institutional software package (Pending:VEI). 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.

    Please Click Here to Download a FREE Demo of ValuEngine's Professional VEI Software Package.

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

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    TNKTEEKAY TANKERS5.47-45.8356.73
    GBXGREENBRIER COS53.81-18.0350.35
    TRNTRINITY INDS IN27.07-39.18-5.51
    AALAMER AIRLINES52.244.1258.4
    ARIIAMER RAILCAR52.19-14.9310.5

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

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    TNKTEEKAY TANKERS5.47-45.8356.73
    GBXGREENBRIER COS53.81-18.0350.35
    TRNTRINITY INDS IN27.07-39.18-5.51
    AALAMER AIRLINES52.244.1258.4
    ARIIAMER RAILCAR52.19-14.9310.5

    Top-Five Transportation Stocks--Composite Score

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    AALAMER AIRLINES52.244.1258.4
    RYAAYRYANAIR HLDGS68.27-16.5142.26
    GBXGREENBRIER COS53.81-18.0350.35
    TRNTRINITY INDS IN27.07-39.18-5.51
    TNKTEEKAY TANKERS5.47-45.8356.73

    Top-Five Transportation Stocks--Most Overvalued

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    YRCWYRC WORLDWD INC15.94300-27.18
    XPOXPO LOGISTICS38.2554.9447.34
    RLGTRADIANT LOGIST4.9353.7974.82
    HAHAWAIIAN HLDGS26.6243.67162.27
    JBLUJETBLUE AIRWAYS17.1638.9101.82
    Feb 02 12:51 PM | Link | Comment!
  • Apple Posts Most Profitable Quarter In History

    VALUATION WATCH: Overvalued stocks now make up 53.66% of our stocks assigned a valuation and 14.73% of those equities are calculated to be overvalued by 20% or more. Eight sectors are calculated to be overvalued--with three at or near double digits.

    Kiss the Cook
    --Apple Posts Most Profitable Quarter in History

    Apple Inc. is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.

    There were a lot of questions about Apple's future following the death of founder and CEO Steve Jobs, but replacement Tim Cook did a lot to bury doubts once and for all with the most recent earnings report. Apple posted the greatest profit of any company in history yesterday. The Company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarter's revenue.

    The tech juggernaut's profit of $18 billion dollars handily beat the @ $16 billion prior record posted by Exxon/Mobil back in 2012. The latest iPhones led to the staggering number, with 74.5 MILLION of the devices sold for the quarter. The company's cash reserves now approach $180 BILLION. That's enough cash to buy major competitors outright--if they wanted.

    Buyers purchased large quantities of the bigger, more expensive, and more profitable iPhone 6 Plus, and that really boosted the company's bottom line. Sales of iPads were less impressive, but that didn't matter due to the huge demand for the latest iPhone models during the Christmas season. Analysts note that the phones were also wildly popular in China, a fact which bodes well for the future. Since the death of Steve Jobs, Cook has essentially increased quarterly profits 300%. He has also helped the company by getting rid of management figures who were apostles of Jobs, but perhaps not as effective as they should have been.

    ValuEngine continues its BUY recommendation on APPLE INC for 2015-01-27. Based on the information we have gathered and our resulting research, we feel that APPLE INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.

    As a bonus to our Newsletter readers,
    we are offering a FREE DOWNLOAD of one of our Stock Reports

    Read our Complete Detailed Valuation Report on Apple HERE.

    Below is today's data on AAPL:


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month109.720.53%
    3-Month110.671.40%
    6-Month111.862.49%
    1-Year116.146.42%
    2-Year132.1821.11%
    3-Year69.42-36.39%

     















    Valuation & Rankings
    Valuation8.21% overvaluedValuation Rank(?) 32
    1-M Forecast Return0.53%1-M Forecast Return Rank 86
    12-M Return38.78%Momentum Rank(?) 89
    Sharpe Ratio1.04Sharpe Ratio Rank(?) 96
    5-Y Avg Annual Return25.98%5-Y Avg Annual Rtn Rank 93
    Volatility25.02%Volatility Rank(?) 72
    Expected EPS Growth17.53%EPSGrowth Rank(?) 52
    Market Cap (billions)640.09Size Rank 100
    Trailing P/E Ratio15.68Trailing P/E Rank(?) 73
    Forward P/E Ratio13.34Forward P/E Ratio Rank 67
    PEG Ratio0.89PEG Ratio Rank 47
    Price/Sales3.50Price/Sales Rank(?) 27
    Market/Book6.23Market/Book Rank(?) 20
    Beta0.89Beta Rank 58
    Alpha0.22Alpha Rank 88

    Jan 28 3:27 PM | Link | Comment!
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