American Express Is New Top Dow Stock

ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities.  When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient–an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.

We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.

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.

Since we last presented the top Dow picks in January, we see little change. Our turnover is only ten percent. We see Merck this month in ninth spot and it has replaced Verizon in our top-ten list.

We do see some change however, with American Express taking over the top spot from JPMorgan Chase. American Express moved up from fourth position to first while JPMorgan Chase fell from first to third. Other declining stocks include IBM and United Health.

The only other stock–besides our leader–to improve its position this month was Intel Corp.

Companies that held their positions this month are Goldman Sachs, Apple, Cisco Systems, and Traveler’s.

We have no STRONG BUY-rated stocks in the DOW right now. Our entire top-ten list consists of BUY-rated equities with the exception of MRK and TRV.

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

1-M Forecast Retn

1-Yr Forecast Retn

P/E Ratio

Sector Name

Jan. 12th, 2016

AXP

AMER EXPRESS CO

79.86

2.01%

43.56%

0.90%

10.81%

14.13

Finance

JPM

GS

GOLDMAN SACHS

251.73

28.20%

69.18%

0.89%

10.63%

14.69

Finance

GS

JPM

JPMORGAN CHASE

91.06

31.19%

55.47%

0.76%

9.05%

14.55

Finance

IBM

IBM

INTL BUS MACH

181.15

25.03%

35.42%

0.63%

7.56%

13.32

Computer and Technology

AXP

INTC

INTEL CORP

36.07

5.34%

22.90%

0.59%

7.12%

13.08

Computer and Technology

UNH

AAPL

APPLE INC

137.11

24.18%

41.53%

0.58%

6.92%

16.35

Computer and Technology

AAPL

CSCO

CISCO SYSTEMS

34.09

14.70%

28.01%

0.47%

5.69%

15.78

Computer and Technology

CSCO

UNH

UNITEDHEALTH GP

160.57

7.56%

32.41%

0.39%

4.66%

19.65

Medical

VZ

MRK

MERCK & CO INC

65.29

22.43%

28.60%

0.31%

3.72%

17.38

Medical

INTC

TRV

TRAVELERS COS

121.9

16.48%

11.48%

0.27%

3.30%

11.98

Finance

TRV

NOTE: New stocks are in BOLD.

Below is today’s data on American Express (AXP):

American Express Company (AXP) is primarily engaged in the business of providing travel related services, financial advisory services and international banking services throughout the world. American Express Travel Related Services Company, Inc. provides a variety of products and services, including, global network services, the American Express Card, the Optima Card and other consumer and corporate lending products, stored value products, and several others.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on American Express for 2017-02-22. Based on the information we have gathered and our resulting research, we feel that American Express has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.

You can download a free copy of detailed report on American Express (AXP) from the link below.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

80.58 0.90%

3-Month

80.49 0.79%

6-Month

81.33 1.84%

1-Year

88.49 10.81%

2-Year

77.26 -3.26%

3-Year

73.55 -7.90%

Valuation & Rankings

Valuation

2.01% overvalued

Valuation Rank(?)

67

1-M Forecast Return

0.90%

1-M Forecast Return Rank

96

12-M Return

43.56%

Momentum Rank(?)

72

Sharpe Ratio

0.41

Sharpe Ratio Rank(?)

74

5-Y Avg Annual Return

8.42%

5-Y Avg Annual Rtn Rank

69

Volatility

20.57%

Volatility Rank(?)

70

Expected EPS Growth

1.53%

EPS Growth Rank(?)

23

Market Cap (billions)

81.70

Size Rank

99

Trailing P/E Ratio

14.13

Trailing P/E Rank(?)

82

Forward P/E Ratio

13.92

Forward P/E Ratio Rank

68

PEG Ratio

9.21

PEG Ratio Rank

4

Price/Sales

2.42

Price/Sales Rank(?)

43

Market/Book

38.90

Market/Book Rank(?)

4

Beta

1.24

Beta Rank

28

Alpha

0.16

Alpha Rank

71

VALUATION WARNING: Overvalued stocks now make up 69.77% of our stocks assigned a valuation and 34.68% of those equities are calculated to be overvalued by 20% or more. Sixteen sectors are calculated to be overvalued.

Disclaimer: ValuEngine.com is an independent research ...

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