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ValuEngine Weekly, December 3, 2010

|Includes:BJRI, BKS, CHUX, CVS, DPZ, EBAY, IACIV, JACK, M, NFLX, Northrop Grumman Corporation (NOC), NSIT, RVI, SVU, TGT, TLB, WMT

 

 

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December 3, 2010
The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to investing and the tools available from ValuEngine. In today's fast-moving and globalized financial markets, it is easy to get overloaded with information. The winners will adopt an objective, scientific, independent and unemotional approach to investing. If you are not yet a member of ValuEngine's stock analysis service, sign up now for a two-week free trial at www.valuengine.com!
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Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE Bonus for Readers
--Free Individual Stock Report for Weekly Newsletter Subscribers

 As a bonus to our Free Weekly Newsletter subscribers, we are now offering a FREE DOWNLOAD of one of our $ 25.00 Detailed Valuation Reports.  

  This week's free download is our report on Northrop Grumman Corporation (NYSE:NOC).  ValuEngine has issued a STRONG BUY recommendation for Northrop Grumman. Based on the information we have gathered and our resulting research, we feel that Northrop Grumman has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and P/E ratio.

   Based on available data as of Dec. 03, 2010, we believe that NOC should be trading at $68.46. This makes NOC 6.47% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For NOC, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $6.06, forecasted EPS for the next four quarters of $6.45, and correlations to the 30- year Treasury bond yield of 4.27%.

   Northrop Grumman Corporation is a high technology company providing innovative solutions in systems integration, defense electronics and information technology for its U.S. and international military, government and commercial customers, as a prime contractor, principal subcontractor, team member or preferred supplier.

  Subscribers can check out the latest figures on NOC from our models HERE.

Weekly Subscribers can download a FREE Detailed Valuation Report on Northrop Grumman HERE.

If you have not subscribed and want to be able to receive a FREE $ 25.00 Detailed Valuation Report, you can subscribe to our Free Weekly Newsletter HERE.

ValuEngine Index Overview
Index
Week Open
Thurs. Close
Change
% Change
YTD
DJIA
11083.75 11362.4 278.65 2.51% 8.72%
NASDAQ
2522.24 2579.35 57.11 2.26% 13.69%
RUSSELL 2000
732.71 751.2 18.49 2.52% 18.17%
S&P 500
1189.08 1221.53 32.45 2.73% 9.23%
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ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
44.18%
Stocks Overvalued
55.82%
Stocks Undervalued by 20%
20.88%
Stocks Overvalued by 20%
24.76%
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ValuEngine Sector Overview
Sector
Change
MTD
YTD
Valuation
Last 12-MReturn
P/E Ratio
Basic Materials 1.32% 1.39% 28.99% 23.68% overvalued 59.52% 35.33
Oils-Energy 1.51% 1.59% 15.08% 22.48% overvalued 44.15% 43.85
Multi-Sector Conglomerates 0.99% 1.02% 22.14% 11.95% overvalued 32.59% 33.31
Auto-Tires-Trucks 1.76% 1.87% 48.12% 10.08% overvalued 53.23% 36.03
Transportation 0.98% 1.03% 23.13% 7.77% overvalued 28.40% 40.05
Industrial Products 1.29% 1.37% 22.84% 6.78% overvalued 29.28% 28.09
Retail-Wholesale 0.31% 0.39% 17.70% 6.31% overvalued 59.94% 26.40
Aerospace 0.70% 0.74% 18.66% 4.88% overvalued 31.51% 19.67
Utilities 0.33% 0.38% 5.22% 4.06% overvalued 14.80% 27.83
Computer and Technology 1.13% 1.21% 25.65% 3.83% overvalued 33.49% 41.33
Consumer Staples 0.46% 0.53% 8.37% 3.46% overvalued 17.80% 22.10
Business Services 1.25% 1.39% 10.35% 2.84% overvalued 22.07% 30.27
Finance 1.19% 1.25% 15.82% 2.75% overvalued 15.63% 29.91
Consumer Discretionary 0.45% 0.52% 19.80% 0.56% overvalued 27.36% 31.07
Construction 2.75% 2.91% 6.41% 2.44% undervalued 9.27% 38.56
Medical 0.35% 0.41% 12.08% 6.29% undervalued 16.42% 33.78
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  Sector Talk--Retail-Wholesale

   Below, we present various top-five lists for the Retail-Wholesale Sector from our Institutional software package (Pending:VEI).  These results were filtered by market price and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Retail-Wholesale Stocks--Short-Term Forecast Returns

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
SVU SUPERVALU INC 8.66 -37.06 -37.97
AHONY AHOLD N V ADR 12.33 -59.26 -8.94
NSIT INSIGHT ENTRPRS 12.93 -21.79 21.29
WMT WAL-MART STORES 54.75 3.19 2.59
JACK JACK IN THE BOX 20.62 -33.25 8.7
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Top-Five Retail-Wholesale Stocks--Long-Term Forecast Returns

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
AHONY AHOLD N V ADR 12.33 -59.26 -8.94
WMT WAL-MART STORES 54.75 3.19 2.59
EBAY EBAY INC 29.91 5.07 25.88
TGT TARGET CORP 59.65 -5.3 27.02
CVS CVS CAREMARK CP 31.98 -6.02 3.9
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Top-Five Retail-Wholesale Stocks--Composite Score

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
M MACYS INC 25.54 -9.99 58.34
DPZ DOMINOS PIZZA 14.87 -25.77 90.89
TLB TALBOTS INC 11.43 -39.57 69.33
AHONY AHOLD N V ADR 12.33 -59.26 -8.94
RVI RETAIL VENTURES 16.48 -21.96 111.01
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Top-Five Retail-Wholesale Stocks--Most Overvalued

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
BKS BARNES & NOBLE 13.06 99.09 -40.61
BJRI BJ'S RESTAURANT 38.1 87.32 111.9
CHUX OCHARLEYS INC 7.06 86.65 3.07
NFLX NETFLIX INC 193.42 75.58 227.83
IACI IAC/INTERACTIV 29.35 75.36 52.71
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  Subscribers can check out the latest valuation, forecast, and ratings figures on the Retail-Wholesale Sector from our Models HERE.

Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

 

What's Hot
-- Suttmeier to Appear at Florida Investment Conference

   With all of the recent market uncertainties, making the correct stock decisions can be daunting.   ValuEngine Chief Market Strategist Richard Suttmeier will be appearing at the AAII Orlando Chapter meeting on January 19, 2011.  We invite all VE clients in Florida to attend.  At the meeting, Suttmeier will discuss the following topics:

  • How ValuEngine.com can help investors adapt to volatile and risky market conditions
  • How to implement a hedge fund-type strategy for your own stock investment portfolio
  • How ValuEngine’s research helped me call both the top and the bottom of the market over the past five years


   This meeting will take place at the University Club of Winter Park, 841 N. Park Ave. Winter Park, FL 32789.  It starts at 6:30pm.  Again, all VE clients are invited.  We place a special call out to those seeking individual investment advice, assistance, and portfolio management.

 

 An archive of this weekly newsletter is available here.

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Disclosure: no positions
Stocks: NOC, SVU, NSIT, WMT, JACK, EBAY, TGT, CVS, M, DPZ, TLB, RVI, BKS, BJRI, CHUX, NFLX, IACIV