valuengine weekly: business services stocks,coca-cola, and market valuation

8/20/2019 ValuEngine Weekly: Business Services Stocks,Coca-Cola, and Market Valuation

1/10

October 2, 2015

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VALUATION WATCH: Overvalued stocks now make up 36!6" o# ourstocks ass$%ned a valuat$on and &'((" o# t)ose e*u$t$es are calculated to+e overvalued +, '-" or more T)ree sectors are calculated to +eovervalued

MARKET OVERVIEW

Inde. /tarted week 0r$da, 12 C)an%e C)an%e " ,td

4IA %&%"(& %&()*"+ 5'(6 5-&" 563"

NA/A7 *&&,"& *&,(",) 5&'8 5-'9" 5&(9"

U//;LL '--- %%(%")+ %.." 5''(9 5'-&" 59("

/


2/10

SECTOR OVERVIEW

/ector C)an%e 2T =T Valuat$on Last &'52

eturn

1>;

at$oAerospace -"%/ -",/ -,"../ ("(,/ overvalued -%")*/ %&"+

Auto5T$res5Trucks -"%/ "(/ -.".,/ %*"./ undervalued -%"/ %*"+

?as$c 2ater$als -"&/ "(./ -(")./ (")+/ undervalued -%"),/ (%"%

?us$ness /erv$ces "(%/ "(+/ -"*/ "*(/ undervalued -(".*/ (("%*

Computer and Tec)nolo%, -"&*/ -",+/ -&"/ +"%/ undervalued -&"*+/ (+"&&

Construct$on -"%*/ -"./ -,"&/ %%"%&/ undervalued -*".&/ %."+

Consumer $scret$onar, -"%)/ -"%/ -%")/ +"*/ undervalued -*"%)/ (*".&

Consumer /taples -"./ -"*/ -&"/ ("(&/ undervalued -")*/ ("%(

0$nance -"/ "(/ -(")/ "*+/ undervalued -",)/ %&")

Industr$al 1roducts -"*(/ -"+/ -%(".,/ %&"(./ undervalued -%,".%/ %+"

2ed$cal -"./ -"(/ %"*/ ".)/ undervalued ("/ ()"),

2ult$5/ector Con%lomerates -",/ -"%/ -%"((/ )"%*/ undervalued -&".)/ ("&)

O$ls5;ner%, "(&/ "./ -(,"+(/ (%"&+/ undervalued -,".+/ (".

eta$l5W)olesale -"*+/ -"*/ -.")./ &".(/ undervalued -*"(,/ (%".+

Transportat$on -"+/ -"(+/ -%&"*%/ %&"**/ undervalued -%,",)/ %*"++

Ut$l$t$es -"*./ -"*,/ -%"(*/ ,"%(/ undervalued -)"%*/ ("&,

Sector Talk—Bus!ess Ser"cesBelow, we present the latest data on leading Business Services Sector stocks

from our 1ro#ess$onal /tock Anal,s$s /erv$ce These results were filtered by marketprice and volume--no results below 3$/share or less than !!k shares/day volume"

Top50$ve ?us$ness /erv$ces /ector /tocks55/)ort5Term 0orecast eturns

T$cker Compan, Name 2arket 1r$ce Valuat$on Last &'52 etrn

CV@ 012VE3456 0137 ( -,"%/ (."+/

V;C VE0T386 I20 ((") 29: %"&/

WU WE6TE32 82I12 %)"(% -("%(/ %",/

A/@N 12 :66I42;E2T &",. -%,"&*/ &"()/

??/I


3/10

Top50$ve ?us$ness /erv$ces /ector /tocks55Lon%5Term 0orecast eturns

T$cker Compan, Name 2arket 1r$ce Valuat$on Last &'52 etrn

CV@ 012VE3456 0137 ( -,"%/ (."+/

V;C VE0T386 I20 ((") 29: %"&/WU WE6TE32 82I12 %)"(% -("%(/ %",/

A/@N 12 :66I42;E2T &",. -%,"&*/ &"()/

??/I


4/10

#ree $o%!loa& 'or Rea&ers (s a 0onus to our Free Weekly #ewsletter su0scri0ers,

we are offering a F.EE $W#&$( of one of our Stock .eports

The #oca-#ola #ompany %&' is the world(s largest beverage company and is the

leading producer and marketer of soft drinks" )long with #oca-#ola, recogni*ed asthe world(s best-known brand, The #oca-#ola #ompany markets four of the world(stop five soft drink brands, including diet #oke, +anta and Sprite" Through the world(s

largest distribution system, consumers in nearly !! countries enoy The #oca-#ola#ompany(s products at a rate of more than billion servings each day"

.alungine continues its 0&12 recommendation on #) #&1) #& for !-!-!"Based on the information we have gathered and our resulting research, we feel that#) #&1) #& has the probability to 4&56017 8)T#0 average market

performance for the ne9t year" The company e9hibits )TT4)#T:. #ompany Si*e but5;)TT4)#T:. Book 8arket 4atio"

.ead our 1omplete etailed Valuation .eport on 1oca"1ola H;;

http://www.valuengine.com/download/report/TMP_VE_KO_20151002059735.pdfhttp://www.valuengine.com/images/newsletter/weekly/151002KOchart.ashxhttp://www.valuengine.com/download/report/TMP_VE_KO_20151002059735.pdf


5/10

ValuEngine Forecast

Target"?@ -!"!A

!-onth !"> !">CA

"-onth !"?3 "3A

1-#ear 3>"33 -"?A

$-#ear "! !"CA

!-#ear "C ?"@?A

Valuation % Ran&ingsValuation !"3!A undervalued Valuation Ran& D' 33

1- Forecast Return -!"!A 1- Forecast Return Ran& 3

1$- Return -@"?!A o'entu' Ran& D'

(har)e Ratio !"! (har)e Ratio Ran& D' C!

*-# +vg +nnual Return @"C3A *-# +vg +nnual Rtn Ran& @C

Volatility 3"@CA Volatility Ran& D' C@

E)ecte E.( /rowth -!">CA E.( /rowth Ran& D'

ar&et Ca) 0billions ?"33 (i2e Ran& !!

3railing .4E Ratio >" 3railing .4E Ran& D' ?

Forwar .4E Ratio >"@ Forwar .4E Ratio Ran& ?

.E/ Ratio n/a .E/ Ratio Ran& n/a

.rice4(ales 3"C .rice4(ales Ran& D' 3

ar&et45oo& @C"!? ar&et45oo& Ran& D'

5eta !"3 5eta Ran& @@

+l)ha -!"! +l)ha Ran& C

http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/charts/pricerating_jpg/KO.jpghttp://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#http://www.valuengine.com/ve/ValuationSummary#


6/10

W(at)s *ot

Valuato!s $"e A+a! $ue To C(!aCo--o&tes Worres

.alungine tracks more than ?!!! 5S eEuities, )24s, and foreign stock whichtrade on 5S e9changes as well as F!!! #anadian eEuities" Ghen


7/10

:n addition, we now have the recent +&8# decision to leave short-term rates

unchanged to consider" +ed officials noted that turmoil in #hina and other emergingmarkets may have a negative spillover effect for the underlying 5S economy" :ndeed,as we have noted lately, news from companies such as #aterpillar indicates a global

slow down" )nything dealing with global commodities and construction can play arole"

)nd, to throw in random events, seemingly unrelated, you had the bone-headed greed of a pharma #& and the shady practices of an auto giant causingturmoil in bio-tech and the auto industry and more selling"

But, as always, we note a stronger 5S economy, with the labor situationimproving by the day, some upward wage pressures, continued recovery for housing,

a strong rental market, decent auto sales--but probably ;&T for .G movingforwardJ-- etc" 5S eEuities remain standing as the last bastion of decent yield forscared investors the world over"

Ghat we fear more now is some sort of shut down scare--or actual shut down--or perhaps additional austerity measures from misguided right-wing politicians inGashington 2#" &r, a +ed that raises rates not in relation to its twin-mandate--control

inflation and ensure full employment--but as some sort of sop to some bankers, whowant a rate increase for their own needs, or to Hsend a messageH that rates can beraised merely because the economy is strong enough to absorb an increase"

This is not what the +ed is supposed to be about" )nd hitting the brakes rightnow, in the face of the #hinese issues and other emerging market concerns vis-a-vis

commodities and such, makes no sense" Today's weaker than expected jobs report

should also help the Fed make the right decision in the short term--eg, do NOT raise

rates.

Ge believe the market slide will be temporary, driven by events over seas, notany sort of underlying weakness in the 5S economy" But, we live in an ever-more

interdependent world" &ne cannot ignore events overseas" But, one also shouldreali*e that our models see a buying opportunity here" That does not mean things

cannot decline further, ust that from their perspective eEuities are far cheaper thanthey were over much of the past three years"


8/10

The chart below tracks the valuation metrics from Kanuary !" :t shows levels in

e9cess of !A"

This chart shows overall universe over valuation in e9cess of !A vs the SI< !! fromKanuary !3

http://www.valuengine.com/images/newsletter/weekly/150929medtermval.pnghttp://www.valuengine.com/images/newsletter/weekly/150929shrtvalchrt.png


9/10

This chart shows overall universe under and over valuation in e9cess of !A vs the SI<!! from 8arch !!?=

NOT;: T$me /cale Compressed 1r$or to '-&&

VE Stock A!al.ss 'or I!&"&ual I!"estors

:t can be tough to deal with today(s markets" .olatility creates HnoiseH thatmakes it hard to find the real investment opportunities out there" The financial media,

the internet, and ust about anybody with an opinion can make finding the rightstocks a daunting task" Save time by narrowing your search to the specific high-Euality eEuities that can really boost your portfolio(s performance with ValuEngine6s(toc& +nalysis (ervice7

&ur VE (toc& +nalysis (ervice for Iniviual Investors gives you access to thepower of .alungine right on our website" :t includes everything you need to make

the . Stock valuation 8odels work for you and substantially increase your chancesof success in the market" Gebsite access includes our )dvanced Screening tools,2etailed Stock .aluation and +orecast data on more than ?!!! 5S and #anadianeEuities, and


10/10

Save time and avoid hype" 2o your own research" 6et timely, accurate, and

obective stock analysis on over ?!!! 5S and #anadian companies updated everytrading day" Sign up for ValuEngine8s (toc& +nalysis (ervice and bring the power of.alungine--a +orbes and )):: research-award winner, to your portfolio" )ct now and

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ValuEnginecom is an independent research provider, producing 0uy2hold2sell recommendations, target price, and valuations on over 3,444

5S and 1anadian e6uities every trading day
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valuengine weekly: business services stocks,coca-cola, and market valuation

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