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Applied Materials Continues To Dominate NASDAQ 100

|Includes: Applied Materials, Inc. (AMAT), AMGN, AVGO, CA, CSCO, EBAY, FB, INTC, LRCX, NTES

VALUATION WATCH: Overvalued stocks now make up 47.45% of our stocks assigned a valuation and 15.32% of those equities are calculated to be overvalued by 20% or more. Eight sectors are calculated to be overvalued.

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Apply Yourself --ValuEngine: Applied Materials Still Tops NASDAQ

ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities. When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient--an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.

We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.

We can use our data to track individual stocks, industries, sectors, and indices. For today's bulletin, we present key metrics for the top picks in the NASDAQ 100. The companies listed below represent the top-ten BUY and STRONG BUY stocks within the index. They are presented below according to their one-month forecast target prices.

As we also saw in our last report in August. we see very little turnover here. Once again, we have only two new companies in out top-ten list--Amgen and Ebay. The newcomers replaced MicroChip Technology (NASDAQ:MCHP) and Texas Instruments (NYSE:TXN). Applied Materials is once again number one. Netease has moved up three spots to takeover the number two position. Cisco is also up from eighth-to-sixth. LAM Research, Broadcom, Facebook, and CA Inc have all declined a few spots this month. As is always the case, this tech-heavy index features a top-ten list dominated by computer and technology firms.

 

 

 

 

 

 

 

 

 

 

 

Ticker Company Name Market Price Valuation Last 12-M Retrn 1-M Forecast Retn 1-Yr Forecast Retn P/E Ratio Sector 8-11-2016 Leaders
AMAT APPLD MATLS INC 29.84 -21.18% 85.51% 1.21% 14.62% 21.47 Computer and Technology AMAT
NTES NETEASE INC 211.97 2.93% 90.65% 1.03% 12.32% 18.72 Computer and Technology LRCX
LRCX LAM RESEARCH 93.32 2.70% 28.24% 0.86% 10.25% 14.67 Computer and Technology AVGO
INTC INTEL CORP 35.89 8.64% 25.75% 0.67% 8.06% 14.26 Computer and Technology INTC
AVGO BROADCOM LTD 176.42 4.89% 40.05% 0.67% 8.05% 19.67 Computer and Technology NTES
CSCO CISCO SYSTEMS 31.44 4.16% 21.48% 0.66% 7.91% 14.62 Computer and Technology FB
FB FACEBOOK INC-A 126.12 -12.28% 41.03% 0.61% 7.37% 52.26 Computer and Technology MCHP
AMGN AMGEN INC 170.06 -8.56% 12.04% 0.55% 6.56% 15.33 Medical CSCO
EBAY eBAY INC 32.16 -8.18% 18.63% 0.51% 6.08% 20.31 Retail-Wholesale CA
CA CA INC 33.91 17.49% 24.26% 0.47% 5.63% 14.89 Computer and Technology TXN

NOTE: New stocks are in BOLD

Below is today's data on eBAY (NASDAQ:EBAY):

eBay is one of the world's largest online trading communities. eBay creates a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses. eBay enables trade on a local, national and international basis with local sites in numerous markets in the United States and country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on EBAY INC for 2016-08-31. Based on the information we have gathered and our resulting research, we feel that EBAY INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Momentum.


 






ValuEngine Forecast
  Target
Price*
Expected
Return
1-Month 32.32 0.51%
3-Month 32.33 0.54%
6-Month 32.30 0.43%
1-Year 34.12 6.08%
2-Year 30.07 -6.51%
3-Year 28.32 -11.94%

 















Valuation & Rankings
Valuation 8.18% undervalued Valuation Rank(?) 63
1-M Forecast Return 0.51% 1-M Forecast Return Rank 85
12-M Return 18.63% Momentum Rank(?) 74
Sharpe Ratio -0.02 Sharpe Ratio Rank(?) 50
5-Y Avg Annual Return -1.00% 5-Y Avg Annual Rtn Rank 50
Volatility 42.43% Volatility Rank(?) 43
Expected EPS Growth 6.32% EPSGrowth Rank(?) 36
Market Cap (billions) 39.95 Size Rank 98
Trailing P/E Ratio 20.31 Trailing P/E Rank(?) 60
Forward P/E Ratio 19.10 Forward P/E Ratio Rank 37
PEG Ratio 3.22 PEG Ratio Rank 15
Price/Sales 4.55 Price/Sales Rank(?) 22
Market/Book 21.12 Market/Book Rank(?) 7
Beta 0.99 Beta Rank 46
Alpha 0.07 Alpha Rank 72
ValuEngine Market Overview

 

 

 

 

 

Summary of VE Stock Universe
Stocks Undervalued 52.55%
Stocks Overvalued 47.45%
Stocks Undervalued by 20% 22.16%
Stocks Overvalued by 20% 15.32%

 

ValuEngine Sector Overview

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Multi-Sector Conglomerates 0.03% 2.04% 9.54% 12.82% overvalued 5.08% 20.67
Consumer Staples -0.52% 1.23% 10.41% 9.36% overvalued 14.05% 23.92
Industrial Products -0.31% 3.08% 16.36% 6.74% overvalued 9.20% 23.09
Basic Materials -0.99% -0.91% 45.22% 3.81% overvalued 52.53% 31.58
Computer and Technology 0.04% 3.50% 15.39% 2.06% overvalued 8.51% 29.13
Aerospace -0.22% 1.23% 0.60% 1.94% overvalued -0.02% 21.20
Utilities -0.41% -2.67% 10.90% 1.19% overvalued 13.85% 21.95
Finance 0.38% 2.82% 7.32% 0.88% overvalued 5.29% 16.32
Oils-Energy -0.26% 2.76% 16.31% 0.67% undervalued -11.00% 25.18
Construction 0.43% 1.31% 30.61% 1.41% undervalued 12.27% 21.15
Transportation 0.49% 0.23% 11.20% 2.01% undervalued -14.57% 14.58
Consumer Discretionary 0.01% 1.58% 9.05% 2.20% undervalued 0.01% 24.04
Business Services 0.35% 1.54% 9.35% 5.40% undervalued 1.10% 24.74
Auto-Tires-Trucks 0.34% 2.17% 4.84% 8.10% undervalued 4.10% 16.48
Retail-Wholesale -0.32% 1.64% 2.11% 9.70% undervalued -3.43% 23.23
Medical 0.04% -0.59% 0.66% 10.81% undervalued -13.90% 27.65

ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.