Big Lots, Dollar General, Costco, Remain Buy Rated
The headliner this week just as it was three months ago is Dollar General
Fundamentally, the stock market remains under a ValuEngine valuation warning with 74.6% of all stocks overvalued, and with 38.0% overvalued by 20% or more. We show 15 of 16 sectors overvalued, 13 by double-digit percentages, with four overvalued by more than 20%. The retail-wholesale sector is overvalued by 19.3%.
Seven of the nine discount retailers rose by 1.7% to 14.9% since the end of May with two declining by 2.6% and 8.6%. Eight of nine are overvalued but by 18.8% or less. At the end of May all nine stocks were above their 200-day SMAs and today two are below on the risk of a reversion to the mean.
Reading the Table
OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
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.
Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.
Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.
Value Level: 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 should be a magnet during the time frame noted.
Risky Level: Price at which to enter a GTC limit order to sell on strength.