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"Top Short” Alcoa Corporation (AA) is the Most Expensive Stock in the Russell 1000

Jun 18, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions 
 

 

  • With the recent rally in US stocks over the last couple of weeks, we think it makes sense to look at “expensive” stocks relative to historic levels to identify stocks that may be poised to downturn amid overdone buying.  
     
  • In this analysis, we are looking at the most expensive stocks in the Russell 1000 based on their Next Twelve Months (NTM) P/E, EBIT/EV, and their Trailing Twelve Month (TTM) FCF/EV.
     
  • We chose these 3 factors because they are unique and differentiated in their methods of measuring valuation. The final 10 stocks highlighted in the table are based on an aggregate overall ranking score.  
     
  • Alcoa Corporation (AA) is the most expensive Russell 1000 stock and maintains a “Top Short” rating in the Quantamize models, making it a high conviction short idea! 

 

Most Expensive Stock in the Russell 1000

Name Ticker Sector NTM Price/Earnings TTM Free Cash Flow/
Total Enterprise Value
NTM EBIT/
Total Enterprise Value
Primary Rating Secondary Rating
Alcoa Corporation AA Materials 14.10x 16.11% 21.51% Top Short -
News Corporation NWSA Communication Services 33.00x 6.14% 6.79% Neutral Neutral
Premier, Inc. PINC Health Care 13.59x 8.46% 17.46% Neutral -
ConocoPhillips COP Energy 13.04x 8.75% 12.75% Neutral -
H&R Block, Inc. HRB Consumer Discretionary 14.21x 8.68% 10.57% Attractive Attractive
Juniper Networks, Inc. JNPR Information Technology 14.53x 8.55% 9.97% Neutral Top Buy
The Progressive Corporation PGR Financials 15.34x 12.23% 8.81% Top Buy -
W. R. Berkley Corporation WRB Financials 23.98x 5.94% 6.95% Top Buy -
First American Financial Corporation FAF Financials 11.06x 20.05% 12.85% Attractive -
Armstrong World Industries, Inc. AWI Industrials 20.36x 10.80% 6.60% Attractive Attractive

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

Select Highlights: 

  • News Corporation (NWSA) is a media and information services company that serves consumers and business worldwide through the creation and distribution of content.  
     
  • H&R Block, Inc. (HRB) is the provider of assisted income tax return preparation, do-it-yourself tax solutions, and other services related to income tax returns primarily for the general public. 
     
  • Juniper Networks, Inc. (JNPR) is the designer and developer of network products and services across the globe, operating through direct sales, distributors, value-added resellers, and original equipment manufacturer partners.  
     
  • The Progressive Corporation (PGR) is the provider of various insurance products and services through its Personal Lines, Commercial Lines, and Property business segments.   
     
  • Armstrong World Industries (AWI) is the designer and manufacturer of ceiling systems that are mainly used in the construction and renovation of commercial and residential buildings in North and South America. 
     
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS