ValuEngine Weekly: Materials Stocks, JCPenney, Apple, and ValuEngine Capital

8/20/2019 ValuEngine Weekly: Materials Stocks, JCPenney, Apple, and ValuEngine Capital

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January 29, 2016

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VALUATION WATCH: Overvalued stocks now make up 25!" o# our stocksass$%ned a valuat$on and &55" o# t'ose e(u$t$es are calculated to )eovervalued )* 2+" or more ,ero sectors are calculated to )e overvalued

MARKET OVERVIEW

Inde- .tarted week /r$da* 01 C'an%e C'an%e " *td

3IA %&(&")& %&*)+"+ 254+ 676" 8!24"

NA.A9 )+,)"+ )+,,".( 274 ++7" 867"

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SECTOR OVERVIEW

.ector C'an%e 1T >T Valuat$on Last 6281

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;at$oAerospace ".+/ -"**/ -"**/ %%"+*/ undervalued -%+"++/ %("*.

Auto8T$res8Trucks -"*./ -%."/ -%."/ .)"+./ undervalued -.%"*./ %",(

@as$c 1ater$als "../ -%")/ -%"&/ .*"))/ undervalued -.(",/ .%"&

@us$ness .erv$ces "+./ -,"*./ -,"*./ %"+,/ undervalued -%.",./ .%"

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

Construct$on "/ -%")%/ -%")%/ ..".)/ undervalued -%+")/ %,"

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

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

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

Industr$al 0roducts -"%(/ -"%%/ -"%%/ %)"*&/ undervalued -%)"&&/ %&"+,

1ed$cal -%"&/ -%*"++/ -%*"++/ %("+)/ undervalued -%(".%/ .+"*&

1ult$8.ector Con%lomerates "%(/ -"(*/ -"(*/ %%"((/ undervalued -%(",&/ %+"*%

O$ls8


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Top8/$ve @as$c 1ater$als .ector .tocks88Lon%8Term /orecast ;eturns

T$cker Compan* Name 1arket 0r$ce Valuat$on Last 6281 ;etrn

CAL1 012-31I4E 56678 )("% ,"+/ *)"(+/

O1< 63E91 :;6TEI4 ."%. -%*"/ (.",)/C.V 01;;I19E 8V08-1 .."+ -%+"%/ )",+/

H (&"+, )"+*/ %."*/

LANC 214018TE; 06264 %%&"(* **"%&/ .+"&+/

.T, 0648TE221T4 >;7 %)*")+ .+"+%/ .",(/

CL 026;6? 06 %.+"( .+"*%/ %+"&/

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To .$%n Up #or a/;


4/7

$ree %o&nloa' (or Rea'er" (s a 0onus to our Free Weekly #ewsletter su0scri0ers,

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

%&enney '%&( is one of )merica*s leading retailers, operating department stores

throughout the +nited States and &uerto ico, as well as one of the largest appareland home furnishing sites on the nternet, .cp#com, and the nation*s largest generalmerchandise catalog business# Through these integrated channels, %&enney offers a

wide array of national, private and e/clusive brands#

0alu1ngine continues its 245 recommendation on &16617 '%( 6% for 8"!9-"!-8:#Based on the information we have gathered and our resulting research, we feel that

&16617 '%( 6% has the probability to +;247 M)T%2 average market

performance for the ne/t year# The company e/hibits )TT)%T01 &rice Sales atiobut +6)TT)%T01 &1 atio#

.ead our 1omplete etailed Valuation .eport on 21Penney H


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Valuat$on = ;ank$n%s

aluation ""#($- un.ervalue. aluation Ran/02 ?#:> billion, which was below

consensus estimates--$>9#9 billion# 1arnings per share increased to $3#8:share upfrom the $3#"9share posted last year--and they beat estimates of $3#83share here#6et income also increased, to $!:#39 billion--a boost of almost 8=#

2owever, while these numbers represent growth, they do not show the sort ofe/plosive climb analysts and investors have grown to e/pect from )pple# )nd once

you dig into the numbers, there is reason for concern# The all important i&honenumbers were similarly disappointing, with the sales growth essentially flat--growthwas less than !=# Mac computer and i&ad sales provided no solace, and were down

year-over-year#

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/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#


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Chile the company reported higher sales to %hina than elsewhere, thosenumbers were also down when compared to the past fiscal year# )pple noted that

sales were harmed in foreign markets--which are hugely important to the company--

due to the stronger +S dollar#

4uca Maestri, )pple %D, noted that Erecord sales and strong margins droveall-time records for net income and 1&S in spite of a very difficult macroeconomicenvironment#E Tim %ook, the %1, also noted the tough global environment and said

earnings were impacted by Ee/treme conditions unlike anything we*ve e/periencedbefore .ust about anywhere we look#E

The shares declined in aftermarket trading last night, and they are now downeven more# )s e/pected, the relatively bad news from )pple hurt the market as those

results, along with bad reports from Boeing, served to further fuel doubts about thehealth of the global economy#

f course, this stock is a powerhouse# They retain a massive cash reserve on

their balance sheet# )nd a EbadE )pple is still a huge company with oversiFedrevenues# But, if he e/plosive growth phase is over, then investors will need to ad.usttheir e/pectations# egardless, it will take a while for changes in guidance, analysts

estimates, and share price fluctuations to work their way through our systems#

ValuEn#ne Ca#tal I" o& Autotra'#n Our

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0alu1ngine 0iew StrategyG The 0alu1ngine 0iew Strategy is the product of asophisticated stock valuation model that was first developed by0alu1ngine*s academic research team# t utiliFes a three factor approachG

fundamental variables such as a company*s trailing !8-month 1arnings-&er-


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Share '1&S(, the analyst consensus estimate of the company*s future !8-month 1&S, and the 3"-year Treasury yield are all used to create a moreaccurate reflection of a company*s fair value# ) total of eleven additional

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ValuEngine Weekly: Materials Stocks, JCPenney, Apple, and ValuEngine Capital