DOW Top-Ten List Remains Static

We track 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.

When we look at our DOW top-ten list lately, two things are true; we typically see very little turnover, and Verizon is number one. This month is no different. Since we last presented the top Dow picks on September 8th, we have just one new company in our list, and VZ remains ensconced in the first spot.

JPMorgan Chase is our sole newcomer this month, DuPont has held its ninth spot. United Technologies has fallen out of the top ten. Intel, Traveler's, Johnson and Johnson, and Merck have moved up a few spots. At the same time, Cisco, United Health, and IBM have declined to make room for the climbers.

Also, be advised that we have no STRONG BUY-rated stocks in the DOW right now. JPMorgan Chase, United Health, DuPont, and IBM are NOT ranked BUY, they are all currently rated as HOLDs by our models.

NOTE: New stocks are in BOLD.

Below is today's data on Merck (MRK):

Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service.

RECOMMENDATION: ValuEngine continues its BUY recommendation on MERCK & CO INC for 2016-10-12. Based on the information we have gathered and our resulting research, we feel that MERCK & CO INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.
 

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We are an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day. 

VALUATION WATCH: Overvalued stocks now make up 47.11% of our stocks assigned a valuation and 15.38% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued.