At www.ValuEngine.com we show nine Buy rated stocks in the S&P 500 that ended last week trading below $10 per share. Five of these are in the Computer & Technology sector which is 11.6% overvalued. Three are in the Utilities sector which is 11.3% overvalued. One is in the Medical sector which is 10.5% overvalued.
All nine stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
BSX – has been below $10 since the week of October 31, 2009.
FTR – has been below $10 since the week of October 18, 2008.
LSI – has been below $10 since the week of April 28, 2007.
MWW – was a $54 stock in February 2007 and has been below $10 since the week of April 14, 2012.
S – was a $23 stock in June 2007 and has been below $10 since the week of February 23, 2008.
TLAB– has been below $10 since the week of September 29, 2007.
WFR – was a $96 stock in December 2007 and has been below $10 since the week of June 11, 2011.
WIN – has been below $10 since the week of November 3, 2012.
XRX – has been below $10 since the week of August 6, 2011.
Reading the Table
OV/UN Valued – The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. The most undervalued stock in today’s table is MWW by 65.1%. The most overvalued stock is Sprint by 35.8%.
VE Rating – A “1-Engine” rating is a Strong Sell, a “2-Engine” rating is a Sell, a “3-Engine” rating is a Hold, a “4-Engine” rating is a Buy and a “5-Engine” rating is a Strong Buy. WIN is rated Strong Buy with the other eight rated Buy.
Last 12-Month Return (%) – Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage over the past twelve months! The biggest gainer over the last 12 months is Sprint by 126.2%. The biggest loser is MWW down 50.7%.
Forecast 1-Year Return – Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. The range of expectations is between a gain of 4.4% and a gain of 12.6%.
P/E Ratios – The 12 month trailing P/E ratios – XRX has a single-digit P/E ratio.
Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that acts as a magnet during the time frame noted.
Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.
Where to Buy and Where to Sell
A “Value Level” is a price at which buyers should add to positions on market price weakness. A “Risky Level” is a price at which sellers should reduce holdings on market price gains. A “Pivot” is a support or resistance (Value Level or Risky Level) that was violated in its time horizon, acting as a magnet during the remainder of that time horizon. These levels are calculated in weekly (W), monthly (M), quarterly (Q), semiannual (S) and annual (A) time horizons, based on the past nine closes in each time horizon. My theory is that the closes over a nine-year period are the summation of all bullish and bearish events for that market or specific stock. These levels are the most important element of my Buy and Trade Strategy.
Buy and Trade Guidelines
Investors should consider entering good until cancelled (GTC) orders to buy weakness to a value level, or to sell strength to a risky level.