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Cnstruction Firms Rated and a Market Neutral Portfolio Example

|Includes:AWI, CBI, KBR, LPX, MasTec, Inc. (MTZ), NCS, ORN, PRIM, RPM, RYN, SHW, THO, TXI

MARKET OVERVIEW

 

 

Index

started week

Wednesday Close

3 day change

3 day change %

ytd

DJIA

12166.32

11780.9

-385.42

-3.17%

2.51%

NASDAQ

2683.38

2621.65

-61.73

-2.30%

-1.26%

RUSSELL 2000

746.48

718.86

-27.62

-3.70%

-7.15%

S&P 500

1253.21

1229.1

-24.11

-1.92%

-1.74%

 

 

Summary of VE Stock Universe

Stocks Undervalued

80.49%

Stocks Overvalued

19.51%

Stocks Undervalued by 20%

44.79%

Stocks Overvalued by 20%

5.79%

 

SECTOR OVERVIEW

 

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Aerospace

-3.13%

1.51%

4.99%

16.43% undervalued

1.09%

17.66

Auto-Tires-Trucks

-5.36%

-0.33%

-29.03%

20.30% undervalued

6.30%

21.67

Basic Materials

-5.26%

1.51%

-19.52%

18.41% undervalued

-6.71%

28.03

Business Services

-3.62%

1.30%

-6.48%

17.20% undervalued

-1.91%

21.44

Computer and Technology

-3.90%

-0.15%

-8.03%

18.22% undervalued

1.70%

34.55

Construction

-4.62%

0.97%

-23.92%

25.11% undervalued

-16.94%

32.13

Consumer Discretionary

-4.26%

0.03%

-11.87%

18.78% undervalued

-4.40%

30.82

Consumer Staples

-3.59%

-0.27%

-15.04%

12.12% undervalued

-6.20%

17.63

Finance

-4.30%

0.28%

-9.70%

17.79% undervalued

-6.64%

18.56

Industrial Products

-4.52%

0.70%

-15.81%

15.30% undervalued

-2.96%

20.45

Medical

-3.39%

1.11%

-5.54%

23.65% undervalued

-2.99%

25.91

Multi-Sector Conglomerates

-3.83%

0.18%

-13.13%

12.88% undervalued

-4.76%

20.84

Oils-Energy

-4.57%

1.01%

-16.79%

16.57% undervalued

5.94%

33.09

Retail-Wholesale

-3.36%

0.82%

-1.88%

13.27% undervalued

9.00%

23.44

Transportation

-3.84%

-0.05%

-15.44%

15.31% undervalued

-9.18%

25.96

Utilities

-3.09%

0.49%

6.38%

7.51% undervalued

1.31%

20.74

Sector Talk—Construction

Below, we present the latest data on leading Construction Sector Stocks 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 Construction Sector Stocks--Short-Term Forecast Returns

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

MTZ

MASTEC INC

15.97

-21.54

9.68

TXI

TEXAS INDS

27.34

-13.55

-29.26

THO

THOR INDS INC

25.26

-34.88

-22.18

LPX

LOUISIANA PAC

6.43

-45.43

-22.34

KBR

KBR INC

26.46

-14.11

-1.96


Top-Five Construction Staples Stocks--Long-Term Forecast Returns

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

LPX

LOUISIANA PAC

6.43

-45.43

-22.34

TXI

TEXAS INDS

27.34

-13.55

-29.26

MTZ

MASTEC INC

15.97

-21.54

9.68

AWI

ARMSTRONG WORLD

38.37

-22.6

8.85

RYN

RAYONIER INC

40.72

-13.08

18.72


Top-Five Construction Staples Stocks--Composite Score

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

MTZ

MASTEC INC

15.97

-21.54

9.68

CBI

CHICAGO BRIDGE

36.53

-16.3

31.54

AWI

ARMSTRONG WORLD

38.37

-22.6

8.85

RYN

RAYONIER INC

40.72

-13.08

18.72

KBR

KBR INC

26.46

-14.11

-1.96


Top-Five Construction Staples Stocks--Most Overvalued

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

ORN

ORION MARINE GP

5.97

110.23

-57.33

PRIM

PRIMORIS SERVCS

14.59

21.71

77.71

SHW

SHERWIN WILLIAM

84.95

10.92

18.3

NCS

NCI BLDG SYSTEM

8.66

5.6

-16.33

RPM

RPM INTL INC

22.66

0.99

8.94


What's Hot-The Diversified Growth Strategy

ValuEngine has created and tracked a variety of investment portfolio strategies which reflect varying investment objectives. Known as "benchmark portfolio strategies," these strategies provide an excellent starting point for using ValuEngine's cutting-edge research to select a basket of stocks.

These strategies feature stocks selected according to specific criteria designed to meet the overall strategy goals for return and risk. All selections are based on calculations made by ValuEngine's proprietary stock valuation and forecast models as well as additional fundamental data-market capitalization, e/p ratio, momentum, dividend schedules - where applicable, as well as other factors.


 

Market Volatility has been the story of late, with wild swings on an almost daily basis.  It is tough to maintain a long-only orientation in such an environment and picking and choosing winners among sectors and industry groups is doubly difficult as investors get whipsawed.  We offer market neutral flavors of most of our Benchmark Portfolio Strategies via our Institutional software package (VEI). 

One of our most successful market neutral strategy portfolios is based on our Diversified Growth Strategy.  This Portfolio consists of 16 stocks--one from each sector, both long and short.   The stocks selected as longs have the highest forecast return for their sector--and vice versa for the shorts.  In addition, some basic size and liquidity criteria are also applied to limit the initial basket.

  Below, we provide a sample portfolio from our software:

VE Diversified Growth MNS Portfolio Longs 

 

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

Forecast 1-Month Retn(%)

Forecast 1-Yr Retn(%)

P/E Ratio

Sector

AVAV

AEROVIRONMENT

31.34

-13.71

32.63

3.1

22.65

20.57

AEROSPACE

WPRT

WESTPORT INNOV

26.96

48.82

50.45

7.74

27.18

   

N/A

AUTO-TIRES-TRUCKS

VALE

VALE RIO DO-ADR

25.18

-32.23

-19.6

2.07

5.93

5.14

BASIC MATERIALS

RPXC

RPX CORP

13.84

-23.65

   

N/A

2.34

7.9

24.3

BUSINESS SERVICES

ROVI

ROVI CORP

28.23

-50.29

-46.46

2.62

11.32

15.12

COMPUTER AND TECHNOLOGY

MTZ

MASTEC INC

15.97

-21.54

9.68

2.03

4.43

11.89

CONSTRUCTION

MAT

MATTEL INC

28.01

-30.73

25.72

6.32

27.48

13.54

CONSUMER DISCRETIONARY

JOBS

51JOBS INC-ADR

44.04

-36.25

-8.63

3.74

33.76

23.28

CONSUMER STAPLES

FAF

FIRST AMER FINL

11.4

-28.76

-17.21

1.93

8

9.72

FINANCE

AVY

AVERY DENNISON

25.43

-35.16

-30.06

0.47

0.74

9.55

INDUSTRIAL PRODUCTS

AMRN

AMARIN CORP PLC

7.57

-75

152.33

3.65

12.92

3.13

MEDICAL

MIC

MACQUARIE INFRA

26.91

26.42

38.57

4.74

3.34

21.56

MULTI-SECTOR CONGLOMERATES

SD

SANDRIDGE ENRGY

7.22

-52.49

39.92

2.03

15.6

   

N/A

OILS-ENERGY

GMCR

GREEN MTN COFFE

67.02

-38.51

95.96

2

9.45

39.56

RETAIL-WHOLESALE

NAT

NORDIC AMERICAN

13.79

-44.32

-45.9

9.46

23.24

   

N/A

TRANSPORTATION

CLNE

CLEAN EGY FUELS

11.08

-23.24

-24.11

5.15

25.06

   

N/A

UTILITIES


VE Diversified Growth MNS Portfolio Shorts
 

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

Forecast 1-Month Retn(%)

Forecast 1-Yr Retn(%)

P/E Ratio

Sector

AXL

AMER AXLE & MFG

8.47

-57.43

-19.02

-4.38

-27.59

4.12

AUTO-TIRES-TRUCKS

FRFHF

FAIRFAX FIN LTD

415.15

300

2.25

-4.07

-30.33

   

N/A

FINANCE

DAL

DELTA AIR LINES

8

-35.23

-42.28

-3.43

-24.72

7.05

TRANSPORTATION

PHM

PULTE GROUP ONC

5.54

-66.84

-28.52

-3.32

-19.26

   

N/A

CONSTRUCTION

BYD

BOYD GAMING CP

6.42

48.2

-38.03

-2.8

-16.68

756.63

CONSUMER DISCRETIONARY

VCI

VALASSIS COMMS

19.94

-40.82

-37.71

-2.59

-12.03

8.23

INDUSTRIAL PRODUCTS

ELN

ELAN CP PLC ADR

10.93

-20.95

103.16

-2.29

-14.24

   

N/A

MEDICAL

WPO

WASHINGTON POST

334.18

133.75

-12.4

-2.11

-18.66

15.44

CONSUMER STAPLES

CPN

CALPINE CORP

14.97

14.76

18.06

-2.09

-13.09

179.64

UTILITIES

BEAV

BE AEROSPACE

38.54

-0.24

5.21

-1.71

-11.05

18.21

AEROSPACE

WDC

WESTERN DIGITAL

26.01

21.77

-24.76

-1.64

-5.1

9.41

COMPUTER AND TECHNOLOGY

NG

NOVAGOLD RSRCS

8.84

-13.99

-38.05

-0.96

3.27

   

N/A

BASIC MATERIALS

CLGX

CORELOGIC INC

13.51

-13.78

-25.07

-0.78

-1.5

18.41

BUSINESS SERVICES

TSL

TRINA SOLAR LTD

7.39

-48.17

-74.07

-0.64

-3.34

3.08

OILS-ENERGY

ITT

ITT CORP

19.02

-67.45

-19.06

-0.58

-11.55

4.07

MULTI-SECTOR CONGLOMERATES

ARO

AEROPOSTALE INC

16.39

56.19

-32.99

-0.54

-4.04

13.11

RETAIL-WHOLESALE

 


 

Stocks: MTZ, TXI, THO, LPX, KBR, AWI, RYN, CBI, ORN, PRIM, SHW, NCS, RPM