February 24, 2017

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VALUATION WARNING: Overvalued stocks now make up 69.31% of our

stocks assigned a valuation and 34.19% of those equities are calculated to
be overvalued by 20% or more. Sixteen sectors are calculated to be
overvalued.

MARKET OVERVIEW

Index Started week Friday PM Change Change % ytd

DJIA 20663.43 20753.03 222.67 1.09% 5.01%
NASDAQ 5850.2 5820.77 65.48 1.14% 8.13%
RUSSELL 2000 1400.66 1390.61 5.03 0.36% 2.47%
S&P 500 2354.91 2357.79 21.57 0.93% 5.31%

Summary of VE Stock Universe

Stocks Undervalued 30.69%
Stocks Overvalued 69.31%
Stocks Undervalued by 20% 13.66%
Stocks Overvalued by 20% 34.19%
SECTOR OVERVIEW
Sector Change MTD YTD Valuation Last 12-M P/E
Return Ratio
Aerospace -0.33% 0.21% 2.45% 16.12% overvalued 36.41% 21.69
Auto-Tires-Trucks -1.42% 1.88% 3.81% 13.93% overvalued 41.63% 14.56
Basic Materials -0.84% 2.53% 10.80% 8.96% overvalued 77.63% 28.34
Business Services -0.49% 1.18% 2.75% 14.84% overvalued 21.67% 23.19
Computer and Technology -0.52% 2.55% 7.06% 17.50% overvalued 29.78% 31.18
Construction -0.82% 2.72% 4.46% 7.24% overvalued 38.52% 20.7
Consumer Discretionary -0.02% 1.55% 3.28% 8.33% overvalued 25.80% 24.88
Consumer Staples 0.04% 2.00% 3.42% 10.57% overvalued 19.90% 25.12
Finance 0.11% 3.26% 4.47% 19.55% overvalued 28.09% 18.85
Industrial Products -0.54% 0.70% 3.47% 20.02% overvalued 35.35% 23.81
Medical -0.24% 3.83% 8.30% 0.90% overvalued 13.28% 27.5
Multi-Sector Conglomerates 0.22% 3.00% 5.93% 19.24% overvalued 25.90% 20.11
Oils-Energy -0.33% -0.84% 1.80% 7.93% overvalued 52.43% 26.91
Retail-Wholesale -1.25% 2.81% 1.31% 2.09% overvalued 8.41% 23.27
Transportation -0.54% 1.26% 6.12% 14.18% overvalued 30.39% 19.09
Utilities -0.65% 1.76% 4.02% 13.81% overvalued 22.15% 23.97

Sector TalkAerospace
Below, we present the latest data on leading Aerospace Sector stocks from our
Professional Stock Analysis Service. We applied some basic liquidity criteria--share
price greater than $3 and average daily volume in excess of 100k shares. We have
been following the sector closely of late because it has been correlated so tightly to
overall equity price moves.

Top-Five Aerospace Sector Stocks--Short-Term Forecast Returns

Ticker Company Name Market Price Valuation Last 12-M Retrn
EGL ENGILITY HLDGS 30.62 9.20% 124.49%
ESL ESTERLINE TECHN 88.8 8.12% 59.40%
MOG.A MOOG INC A 66.27 16.97% 59.19%
SPR SPIRIT AEROSYS 59.91 13.24% 31.84%
BEAV B/E AEROSPACE 62.86 4.45% 46.73%
Top-Five Aerospace Sector Stocks--Long-Term Forecast Returns
Ticker Company Name Market Price Valuation Last 12-M Retrn
KTOS KRATOS DEFENSE 8.51 45.20% 170.16%
EGL ENGILITY HLDGS 30.62 9.20% 124.49%
KLXI KLX INC 49.76 N/A 77.52%
HII HUNTINGTON INGL 214.35 24.57% 61.31%
ESL ESTERLINE TECHN 88.8 8.12% 59.40%

Top-Five Aerospace Sector Stocks--Composite Score

Ticker Company Name Market Price Valuation Last 12-M Retrn
ESL ESTERLINE TECHN 88.8 8.12% 59.40%
BEAV B/E AEROSPACE 62.86 4.45% 46.73%
SPR SPIRIT AEROSYS 59.91 13.24% 31.84%
EGL ENGILITY HLDGS 30.62 9.20% 124.49%
MOG.A MOOG INC A 66.27 16.97% 59.19%

Top-Five Aerospace Sector Stocks--Most Overvalued

Ticker Company Name Market Price Valuation Last 12-M Retrn
KTOS KRATOS DEFENSE 8.51 45.20% 170.16%
LLL L3 TECHNOLOGIES 166.45 44.35% 41.30%
GD GENL DYNAMICS 188.3 39.21% 38.55%
RTN RAYTHEON CO 153.29 36.69% 22.42%
AIR AAR CORP 33.42 36.63% 59.22%

Find out what Wall Street Investment and Media Professionals already know,
ValuEngine offers sophisticated stock valuation and forecast research as well as a
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Free Download for Readers
As a bonus to our Free Weekly Newsletter subscribers,
we are offering a FREE DOWNLOAD of one of our Stock Reports
JCPenney (JCP) is one of America's leading retailers, operating department stores
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VALUENGINE RECOMMENDATION: ValuEngine continues its SELL recommendation on
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ValuEngine Forecast
Target Expected
Price* Return
1-Month 6.82 -0.61%
3-Month 6.63 -3.36%
6-Month 6.37 -7.17%
1-Year 6.36 -7.29%
2-Year 5.24 -23.57%
3-Year 3.57 -48.03%
 Valuation & Rankings
Valuation 55.33% Valuation Rank(?)
undervalued 97
1-M Forecast Return
1-M Forecast Return -0.61% 14
Rank
12-M Return -9.14% Momentum Rank(?) 18
Sharpe Ratio -0.69 Sharpe Ratio Rank(?) 11
5-Y Avg Annual Return 5-Y Avg Annual Rtn
-36.65% 16
Rank
Volatility 52.80% Volatility Rank(?) 32

Expected EPS Growth 1,125.00% EPS Growth Rank(?)

99
Market Cap (billions) 2.09 Size Rank 72
Trailing P/E Ratio 171.50 Trailing P/E Rank(?) 32
Forward P/E Ratio 14.00 Forward P/E Ratio Rank 68
PEG Ratio 0.15 PEG Ratio Rank 80

Price/Sales 0.17 Price/Sales Rank(?)

96
Market/Book 1.83 Market/Book Rank(?) 58
Beta 0.75 Beta Rank 54
Alpha -0.21 Alpha Rank 18

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