January 24, 2012

ATTENTION Investors and Finance Professionals:

If you are reading this you should sign up for ValuEngine's award-winning stock valuation and forecast service at the low price of $19.95/month! NO OBLIGATION, 14 Day FREE TRIAL!

CLICK HERE

Short Squeeze On?

Sears Holdings (SHLD,$SHLD) Powers Up for VE Forecast 16 MNS Newsletter
Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co., is the leading home appliance retailer in North America and is a retail sales leader in tools, lawn and garden, home electronics, and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. Sears has been a real problem stock in the Retail Sector. Bad news made the stock a big short pick of late. However, share prices are up big time and analysts now see an ensuing short squeeze. Sears was the Retail Sector long pick for our VE Forecast 16 MNS Newsletter this month and the stock currently leads our long side with a return approaching 30%. But the model does not expect much from Sears over the longer term. Short-term forecasts are strong--almost 7% over the next 30 days, but the stock only ranks a "HOLD" due to the less impressive 1-Year Forecast Target. ValuEngine has issued a HOLD recommendation for SEARS HLDG CP on Jan. 24, 2012. Based on the information we have gathered and our resulting research, we feel that SEARS HLDG CP has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE price/sales ratio and company size, but UNATTRACTIVE market valuation and expected EPS growth.

Based on available data as of Jan. 24, 2012, we believe that SHLD should be trading at $36.99. This makes SHLD 28.12% overvalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For SHLD, we base this on actual earnings per share (EPS) for the previous four quarters of -$1.90, forecasted EPS for the next four quarters of -$1.93, and correlations to the 30- year Treasury bond yield of 3.15%.
ValuEngine Forecast Target Price*
1-Month 3-Month 6-Month 1-Year 2-Year 3-Year 50.67 50.12 49.34 48.63 47.78 42.55

Expected Return
6.91% 5.76% 4.12% 2.62% 0.82% -10.21%

Valuation & Rankings

Valuation 1-M Forecast Return 12-M Return Sharpe Ratio 5-Y Avg Annual Return Volatility Expected EPS Growth Market Cap (billions) Trailing P/E Ratio Forward P/E Ratio PEG Ratio Price/Sales Market/Book Beta Alpha 28.12% overvalued 6.91% -36.45% -0.41 -26.32% 63.87% -1.58% 5.07 n/a n/a n/a 0.12 1.57 1.86 -0.41 Valuation Rank 1-M Forecast Return Rank Momentum Rank Sharpe Ratio Rank 5-Y Avg Annual Rtn Rank Volatility Rank EPS Growth Rank Size Rank Trailing P/E Rank Forward P/E Ratio Rank PEG Ratio Rank Price/Sales Rank Market/Book Rank Beta Rank Alpha Rank 7 81 23 25 25 35 18 88 20 n/a n/a 93 53 18 23

Click HERE to Download a FREE Sample of Our Best Performing Newsletter

MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 65.92% 34.08% 30.53% 9.54%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
-0.23% 0.98% 0.60% -0.09% -0.43% -0.78% 0.09% 0.16% 0.18% 0.02% -0.09% -0.06% 0.35% 0.06% 0.02% 0.02%

MTD
2.45% 10.23% 7.37% 4.42% 7.08% 8.96% 4.47% 4.66% 4.76% 7.27% 3.92% 6.25% 3.41% 4.31% 5.93% -0.47%

YTD
2.45% 10.23% 7.37% 4.42% 7.08% 8.96% 4.47% 4.66% 4.76% 7.27% 3.92% 6.25% 3.41% 4.31% 5.93% -0.47%

Valuation
8.61% undervalued 10.87% undervalued 9.45% undervalued 9.06% undervalued 9.22% undervalued 3.27% undervalued 10.81% undervalued 7.56% undervalued 6.94% undervalued 7.16% undervalued 15.33% undervalued 6.40% undervalued 10.68% undervalued 0.98% undervalued 5.90% undervalued 3.79% undervalued

Last 12MReturn
-11.20% 25.64% -19.57% 3.93% -8.76% -15.45% -2.89% -1.92% -4.52% -4.49% -9.89% 9.94% -14.32% 6.39% -13.78% 0.56%

P/E Ratio
16.44 14.95 23.05 29.99 44.57 39.6 28.64 18.27 20.67 24.56 35.05 14.76 38.55 23.59 20.67 28.67