Intel Takes Lead On Dow Top-Stock List

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 Dow Jones Industrials. The companies listed below represent the top stocks within the index. They are presented below according to their one-month forecast gain.

We have very little turnover this time for our Dow top-ten list. Our only newcomer is IBM, which has replaced GE. Since the last time we presented the top Dow picks, Intel has moved up to become the overall top pick while Verizon maintains the second spot and Traveler's has declined to third. Johnson and Johnson and United Health Group have also improved while Cisco, McDonald's, Home Depot, and Pfizer have declined a few positions. Be advised that none of these stocks are currently rated higher than BUY--there are no STRONG BUY picks in this edition of our DOW top-ten.

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

1-M Forecast Retn

1-Yr Forecast Retn

P/E Ratio

Sector Name

July 7, 2016

INTC

INTEL CORP

34.83

3.99%

22.86%

0.94%

11.23%

13.88

Computer and Technology

TRV

VZ

VERIZON COMM

55.32

-0.27%

20.71%

0.93%

11.20%

14.08

Utilities

VZ

TRV

TRAVELERS COS

116.43

3.73%

10.27%

0.78%

9.41%

11.24

Finance

INTC

JNJ

JOHNSON & JOHNS

124.77

9.64%

26.95%

0.57%

6.84%

19.65

Medical

CSCO

CSCO

CISCO SYSTEMS

30.76

2.28%

9.04%

0.55%

6.54%

14.58

Computer and Technology

JNJ

IBM

INTL BUS MACH

161.83

-5.87%

1.74%

0.47%

5.63%

12.01

Computer and Technology

PFE

UNH

UNITEDHEALTH GP

141.68

6.62%

20.19%

0.43%

5.12%

20.77

Medical

MCD

MCD

MCDONALDS CORP

119.48

9.20%

24.41%

0.41%

4.92%

22.29

Retail-Wholesale

HD

HD

HOME DEPOT

136.31

1.97%

20.55%

0.37%

4.47%

23.38

Retail-Wholesale

UNH

PFE

PFIZER INC

36.85

14.80%

7.31%

0.35%

4.14%

15.23

Medical

GE

NOTE: New stocks are in BOLD.

Below is today's data on IBM (IBM):

IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure services and business process services. The Global Business Services segment offers professional services and application management services. The Software segment consists primarily of middleware and operating systems software. The Systems and Technology segment provides computing power and storage solutions; and semiconductor technology products and packaging solutions. The Global Financing segment invests in financing assets, leverages with debt and manages the associated risks. IBM is headquartered in Armonk, New York.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on INTL BUS MACH for 2016-07-27. Based on the information we have gathered and our resulting research, we feel that INTL BUS MACH has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

162.59 0.47%

3-Month

164.46 1.63%

6-Month

165.53 2.29%

1-Year

170.94 5.63%

2-Year

172.91 6.85%

3-Year

163.55 1.06%

Valuation & Rankings

Valuation

5.87% undervalued

Valuation Rank(?)

57

1-M Forecast Return

0.47%

1-M Forecast Return Rank

83

12-M Return

1.74%

Momentum Rank(?)

58

Sharpe Ratio

-0.14

Sharpe Ratio Rank(?)

45

5-Y Avg Annual Return

-2.45%

5-Y Avg Annual Rtn Rank

49

Volatility

17.53%

Volatility Rank(?)

80

Expected EPS Growth

0.82%

EPS Growth Rank(?)

24

Market Cap (billions)

160.37

Size Rank

100

Trailing P/E Ratio

12.01

Trailing P/E Rank(?)

85

Forward P/E Ratio

11.91

Forward P/E Ratio Rank

74

PEG Ratio

14.71

PEG Ratio Rank

2

Price/Sales

2.00

Price/Sales Rank(?)

45

Market/Book

10.09

Market/Book Rank(?)

13

Beta

0.73

Beta Rank

58

Alpha

-0.08

Alpha Rank

47

ValuEngine Market Overview

Summary of VE Stock Universe

Stocks Undervalued

54.39%

Stocks Overvalued

45.61%

Stocks Undervalued by 20%

23.26%

Stocks Overvalued by 20%

15.23%

ValuEngine Sector Overview

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Basic Materials

0.64%

8.17%

50.58%

16.68% overvalued

60.39%

30.76

Consumer Staples

-0.57%

1.92%

9.37%

5.97% overvalued

8.98%

24.21

Utilities

-0.35%

2.29%

13.25%

5.63% overvalued

11.50%

23.44

Multi-Sector Conglomerates

0.67%

2.87%

7.01%

4.13% overvalued

-5.69%

18.77

Industrial Products

0.00%

5.96%

11.62%

1.71% overvalued

5.50%

22.69

Aerospace

0.20%

3.86%

-2.37%

1.63% overvalued

-1.06%

19.69

Business Services

-0.31%

3.98%

14.73%

0.04% undervalued

-2.16%

23.93

Construction

0.02%

7.05%

27.66%

0.05% undervalued

9.72%

22.36

Computer and Technology

0.12%

5.33%

11.43%

0.64% undervalued

2.36%

30.21

Finance

0.09%

3.76%

5.05%

2.09% undervalued

0.36%

16.45

Consumer Discretionary

0.04%

4.42%

6.66%

3.10% undervalued

-3.08%

22.36

Oils-Energy

-0.75%

-1.15%

14.91%

5.68% undervalued

-14.09%

24.34

Medical

0.47%

6.09%

0.83%

8.49% undervalued

-19.30%

28.31

Retail-Wholesale

-0.47%

3.37%

0.03%

8.67% undervalued

-7.03%

22.35

Transportation

-0.24%

6.22%

7.13%

9.10% undervalued

-21.30%

14.13

Auto-Tires-Trucks

0.34%

7.55%

1.81%

13.80% undervalued

-3.84%

12.81

VALUATION WATCH: Overvalued stocks now make up 45.61% of our stocks assigned a valuation and 15.23% of those equities are calculated to be overvalued by 20% or more. Six sectors are calculated to be overvalued.

Disclosure: None.

Disclaimer: ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, ...

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