Stock Fair Value Report – August
Overvaluation pressures continued moving forward predominately in LargeCap stocks gaining 7.9 points, followed by SmallCap gaining 4.9 points, while MidCap remained nearly flat. The movements are interesting because there is a move to higher valuations in Buy classified stocks and Hold stocks while Sell stocks are exhibiting a move back to relative fair value. This is the preferred direction for all groups, but there are a handful of sectors and industry groups that are extremely overvalued. See the full report at: Client Service > World Markets > Americas > USA Stock Fair Value Report
USA Stock Considerations
Are the recent trade disputes the reason USA markets are “disappointing” investors? Why are investors saying they are disappointed? We are not sure really. As of Friday the total market is up 6.2% this year which is not far off of the long term average and very close to our estimate for 2018. Are the disappointments more in terms of what people thought could be obtained in 2018? This appears more likely. See the full report in Client Service > World Markets > Americas > USA Stock Consideration Report
Stock Fair Value Changes
40 stocks fair value changed, 60% moved up, 43% due to revenue ratings, 55% due to earnings ratings, 2% due to dividend rating change.
Stock Consideration Change Report
31% of the market is now in Sell Territory, 14 stocks have returned to fair value range. Goodyear Tire earns a Buy consideration while Google earns a Sell consideration.
Stock Fair Value Changes
Sherman-Williams advances $8/share in fair value to $416.