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PA R T 2 Selection & Opinion FEBRUARY 19, 2016

Dear Subscribers, ECONOMIC AND STOCK MARKET COMMENTARY

As part of our ongoing efforts to keep The
Value Line Investment Survey the Continuing job growth remains a staple of the nation added jobs in that sector); and non-
most valuable investment resource for our this long expansion, and this, along with manufacturing gains decelerated again last
subscribers, all updated Ranks are now some other supportive data, give us some con- month, with growth now at its slowest pace in
being released on the Value Line Web Site
by 8:00 A.M. Eastern Time on Mondays. You fidence that the recent sharp correction on nearly two years.
can access all the Ranks each week at Wall Street may have been overdone. As to the
www.valueline.com by entering your jobs situation, the monthly employment rolls Meanwhile, the focus remains on oil. Here,
user name and password. We look forward
to continuing to provide you with accurate now have been up, without exception, for prices have continued their overall decline, with
and timely investment research. Thank you. more than five years. Further, the gains re- a few rallies along the way; global economic
main fairly consistent, with the latest quarter growth has come under stress (notably in Chi-
The Value Line View featuring an average monthly increase of na); and oil production has stayed quite high.
231,000 positions. Such progress is likely to Problems in the oil patch, meantime, have
In This Issue be sufficient to cut the jobless rate (now at curbed investment in a number of U.S. indus-
The Value Line View 3741
nearly an eight-year low of 4.9%) a little more tries and held back our economy, in general. In
Model Portfolios: Recent Developments 3742
in the coming year. Finally, the strides made fact, GDP, which edged up just slightly in last
Growth Stocks with Low Risk 3745
last month, though headlined by a below- year’s fourth quarter, may only strengthen mod-
Low-Risk Stocks for Worthwhile
Total Return 3746
trend gain of 151,000 positions, included a estly to start the year. The slow winter months—
solid gain in hourly earnings, a nice pickup in while likely a short-term restraint—might keep
Stocks for Dividend Growth with
Low Risk 3747 jobs created in the manufacturing sector, and the Federal Reserve from raising interest rates
Equity Funds Average Performance 3748 a rise in the stubbornly low labor-force partic- until much later this year.
Fixed-Income Funds Average Performance 3748 ipation rate.
Selected Yields 3749 The stock market has remained under severe
Federal Reserve Data 3749 The decent employment outlook gives us pressure this year. In fact, the selling has of-
Tracking the Economy 3750
some optimism going forward, as we now ten picked up on any fresh declines in oil pric-
would appear to have the basis for future es, on additional turmoil in the global equity or
Major Insider Transactions 3750
strength in consumer spending (after a subpar currency markets, or on signs that the world’s
Market Monitor 3751
late-2015 outcome), progressively better financial institutions could be in some trouble.
Value Line Asset Allocation Model 3751
housing numbers, and further increases in ve- That said . . .
Industry Price Performance 3751
hicle sales. Getting business capital spending
Changes in Financial Strength Ratings 3751
on the road to recovery (especially in the en- Conclusion: We now think much of this sell-
Stock Market Averages 3752
ergy area) will take longer to achieve. off is behind us and that stocks are attractive
The Selection & Opinion Index appears on page
at these lower levels. Please refer to the inside
3892 (November 27, 2015).
Still, we are somewhat cautious overall. On back cover of Selection & Opinion for our
In Three Parts: Part 1 is the Summary & Index. point, our trade deficit widened in December; statistically-based Asset Allocation Model’s
This is Part 2, Selection & Opinion. Part 3 is
Ratings & Reports. Volume LXXI, Number 27.
manufacturing contracted in January (even as current reading.
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PAGE 3742 VALUE LINE SELECTION & OPINION F E B R U A RY 1 9 , 2 0 1 6

Model Portfolios: Recent Developments

PORTFOLIO I investors, as well. Overall, we think the Shares of Apple, for example, are trad-
Weakness in the broader equity market respective selloffs had more to do with ing at only about 10 times the consen-
continues to weigh on Portfolio I. This is the general negativity surrounding the sus earnings view for this year. And we
not surprising, as stocks with strong price equity markets since the start of the still expect our biotech holdings to do
and earnings momentum are prone to year, especially for many issues, such as well over time, as these cash-rich com-
being especially vulnerable to any eco- SNA and SWK, that had previously en- panies maintain excellent growth pros-
nomic headwinds or a selloff in the joyed strong investor support. The pects out to late decade.
broader market. One of our holdings that former was up 34% in price during
has struggled of late is salesforce.com. 2015, while the latter gained 22% in a Some of our issues, meanwhile, are al-
This high-flying software stock has suf- market that ended up essentially flat for ready showing signs of bottoming.
fered as investors have sought safer alter- the year. Among these are shares of fertilizer
natives. AMN Healthcare has also producer Mosaic, which posted better-
displayed price weakness in recent Elsewhere, forest-products company than-anticipated fourth-quarter earnings,
weeks. Other stocks in the portfolio have Weyerhaeuser reported an 11% decline thanks to cost cuts. That stock certainly
held up better, including Check Point in fourth-quarter share earnings under seems like a bargain at current levels.
Software and C.R. Bard. very tough commodities conditions. Portfolio III is unaltered this week.
The stock’s Timeliness rank dropped to
Accordingly, we are replacing AMN 4 (Below Average), necessitating its re- PORTFOLIO IV
Healthcare and salesforce.com with moval from the portfolio. We will re- The U.S. stock market has lost consider-
CVS Health Corp. and Estee Lauder. place WY with appliance maker able ground, so far, in 2016. Traders have
CVS Health is a leading healthcare ser- Whirlpool. WHR shares have fallen out been increasingly concerned that eco-
vices provider. The recent acquisition of favor on Wall Street over the past nomic weakness overseas may soon vis-
of pharmacy services manager Omni- year, but we see much to like here. it the United States. This has already hurt
care strengthens the company’s pres- Fourth-quarter earnings easily topped companies operating in the industrial,
ence in this area, and ought to give it estimates, and the stock offers good 3- energy, and metals industries. Further-
access to faster-growing markets, too. to 5-year appreciation potential, has an more, earnings season, which is nearly
Estee Lauder, meanwhile, produces above-average dividend yield, and gets over, has not been overly impressive.
and markets skin care, makeup, fra- an A+ for Financial Strength. While many companies managed to
grance, and hair care products around meet their profit targets for the Decem-
the globe. Both of these companies PORTFOLIO III ber quarter, the outlook for the year
have reported solid growth in revenues Weakness has persisted across Portfolio ahead often has become more cautious.
and earnings in recent years. What’s III amid a broader selloff in equities. In-
more, CVS and Estee Lauder earn good vestors, eyeing slumping oil prices, cau- Among the numerous companies post-
marks for Safety and Financial tious words from Fed Chair Janet Yellen, ing 2015 year-end numbers, we recent-
Strength, and score well on most other and mostly ho-hum earnings reports, ly heard from HCP, Inc., a leading
stability measures. Such attributes are continue to flee stocks for safer havens, healthcare REIT. The company deliv-
especially desirable during periods of such as government bonds and gold. This ered weaker-than-expected results for
above normal market volatility. is hampering our more-volatile issues, the fourth quarter, while tempering its
including those in the biotechnology sec- 2016 outlook. Wall Street did not take
PORTFOLIO II tor, AbbVie and Biogen. Notably, despite the news well, as the stock dropped
Portfolio II’s two hand tool manufactur- favorable long-term trends affecting the considerably.
ers recently posted solid December- space, the iShares Nasdaq Biotechnolo-
quarter results, but both failed to gy (IBB) Index has plunged nearly 30% Given the skittish market environment,
impress investors. Snap-on’s share earn- so far this year. We attribute this not only we are closing out our position in HCP,
ings came in 13% above the year- to investors’ waning appetite for risk, but Inc. To fill the open slot, we are adding
earlier period and handily topped Wall to profit-taking after several years of General Motors, which is still the larg-
Street’s consensus estimate. Share net at outperformance. est automaker in the United States. GM
Stanley Black & Decker increased 30% has delivered respectable results of late,
year over year, though this merely Still, we encourage investors, especial- helped along by a pickup in business
matched expectations. Sales at both ly those with a 3- to 5-year horizon, to overseas. Too, large markets, such as
companies were below the Street’s mid- remain level-headed amidst the chaos. China, hold considerable promise. The
point call, largely due to negative cur- The companies in our group are of a stock currently trades at a reasonable
rency exchange headwinds. Stanley’s good quality, and valuations are quite price-to-earnings multiple, and also
2016 guidance may have disappointed compelling on an historical basis. provides an attractive dividend yield.
© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
F E B R U A RY 1 9 , 2 0 1 6 VALUE LINE SELECTION & OPINION PAGE 3743

PORTFOLIO I: STOCKS WITH ABOVE-AVERAGE YEAR-AHEAD PRICE POTENTIAL

(primarily suitable for more aggressive investors)

Ratings &
Reports Recent Time- Financial
Page Ticker Company Price liness Safety P/E Yield% Beta Strength Industry Name
2577 ADBE Adobe Systems 73.85 1 3 42.9 Nil 1.10 A Computer Software
583 AMT Amer. Tower ‘A’ 85.57 1 2 36.9 2.4 0.90 B++ Wireless Networking
175 BCR Bard (C.R.) 181.44 2 1 18.6 0.6 0.80 A+ Med Supp Invasive
967 CVS CVS Health 90.51 2 1 15.9 1.9 0.85 A+ Pharmacy Services
207 CAH Cardinal Health 76.65 2 1 16.8 2.3 0.85 A++ Med Supp Non-Invasive
823 CERN Cerner Corp. 53.71 2 2 23.6 Nil 1.00 A+ Healthcare Information
1811 CHKP Check Point Software 76.69 2 2 18.9 Nil 0.90 A+ E-Commerce
1189 CHD Church & Dwight 88.49 2 1 25.5 1.6 0.70 A+ Household Products
2606 CTSH Cognizant Technology 52.33 2 2 15.8 Nil 1.05 A++ IT Services
448 FDS FactSet Research 137.59 2 2 22.0 1.3 1.00 A+ Information Services
2214 FL Foot Locker 63.64 2 3 13.9 1.6 0.95 B++ Retail (Softlines)
1012 EL Lauder (Estee) 90.44 2 2 26.4 1.3 1.00 A Toiletries/Cosmetics
1140 LOW Lowe’s Cos. 64.15 1 2 16.9 1.8 1.00 A+ Retail Building Supply
2565 MA MasterCard Inc. 81.97 2 2 22.5 0.9 1.05 A++ Financial Svcs. (Div.)
1158 MHK Mohawk Inds. 153.70 2 3 13.5 Nil 1.20 B+ Furn/Home Furnishings
2222 TJX TJX Companies 69.65 2 1 19.3 1.2 0.80 A++ Retail (Softlines)
135 TMO Thermo Fisher Sci. 124.45 2 2 23.9 0.5 1.05 A Precision Instrument
1144 TSCO Tractor Supply 81.45 2 2 24.8 1.1 1.00 A++ Retail Building Supply
2197 ULTA Ulta Salon 151.98 1 3 28.2 Nil 0.95 A Retail (Hardlines)
2573 V Visa Inc. 68.33 2 1 22.8 0.9 0.95 A++ Financial Svcs. (Div.)

To qualify for purchase in the above portfolio, a stock must have a Timeliness Rank of 1 or 2 and a Financial Strength Rating of at least B+. If a stock’s Timeliness rank
falls to 3, or lower, it will be automatically removed. Stocks in the above portfolio are selected and monitored by Michael F. Napoli, Senior Analyst.

PORTFOLIO II: STOCKS FOR INCOME AND POTENTIAL PRICE APPRECIATION

(primarily suitable for more conservative investors)

Ratings &
Reports Recent Time- Financial
Page Ticker Company Price liness Safety P/E Yield% Beta Strength Industry Name

2602 ADP Automatic Data Proc. 80.67 2 1 23.9 2.9 0.95 A++ IT Services
1903 BGS B&G Foods 35.44 2 3 18.7 4.0 0.80 B+ Food Processing
706 BA Boeing 118.88 3 1 14.5 3.7 1.05 A++ Aerospace/Defense
2509 CM.TO Can. Imperial Bank 86.17 3 1 9.1 5.5 0.70 A+ Bank
1190 CLX Clorox Co. 128.68 1 2 26.1 2.4 0.65 B++ Household Products
2554 AJG Gallagher (Arthur J.) 37.82 3 1 14.5 4.0 0.90 A Financial Svcs. (Div.)
1914 GIS Gen’l Mills 55.94 2 1 19.4 3.2 0.70 A+ Food Processing
220 JNJ Johnson & Johnson 101.97 2 1 17.7 3.1 0.75 A++ Med Supp Non-Invasive
1155 LEG Leggett & Platt 40.96 2 2 18.2 3.1 1.10 A Furn/Home Furnishings
2587 MSFT Microsoft Corp. 49.28 2 1 17.5 2.9 1.00 A++ Computer Software
1977 PEP PepsiCo, Inc. 98.28 3 1 20.4 2.9 0.70 A++ Beverage
2522 RY.TO Royal Bank of Canada 67.64 3 1 9.9 4.9 0.70 A Bank
1728 SNA Snap-on Inc. 135.78 1 2 15.5 1.8 1.10 A+ Machinery
1729 SWK Stanley Black & Decker 90.63 2 2 14.0 2.4 1.05 A Machinery
1956 SYY Sysco Corp. 42.61 2 1 21.2 2.9 0.70 A+ Retail/Wholesale Food
2151 TGT Target Corp. 69.86 3 1 14.0 3.3 0.75 A Retail Store
773 TRV Travelers Cos. 105.92 3 1 10.4 2.3 0.85 A++ Insurance (Prop/Cas.)
316 UPS United Parcel Serv. 97.53 2 1 16.8 3.2 0.85 A Air Transport
1546 WPC W.P. Carey Inc. 55.90 3 3 38.3 6.9 0.90 B+ R.E.I.T.
1779 WHR Whirlpool Corp. 137.04 3 3 9.4 2.6 1.30 A+ Diversified Co.

To qualify for purchase in the above portfolio, a stock must have a yield that is in the top half of the Value Line universe, a Timeliness Rank of at least 3 (unranked
stocks may be selected occasionally), and a Safety Rank of 3 or better. If a stock’s Timeliness Rank falls below 3, that stock will be automatically removed.
(Occasionally a stock will be unranked (NR), usually because of a short trading history or a major corporate reorganization.) Stocks are selected and monitored by
Craig Sirois, Editorial Analyst.

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
PAGE 3744 VALUE LINE SELECTION & OPINION F E B R U A RY 1 9 , 2 0 1 6

PORTFOLIO III: STOCKS WITH LONG-TERM PRICE GROWTH POTENTIAL

(primarily suitable for investors with a 3- to 5-year horizon)

Ratings & 3- to 5-yr
Reports Recent Time- Appreciation
Page Ticker Company Price liness Safety P/E Yield% Beta Potential Industry Name
1607 ABBV AbbVie Inc. 53.48 2 2 11.0 4.3 1.10 85 - 145% Drug
757 ALL Allstate Corp. 63.01 3 1 11.4 1.9 0.90 50 - 85 Insurance (Prop/Cas.)
1398 AAPL Apple Inc. 94.99 3 2 10.4 2.3 0.95 60 - 115 Computers/Peripherals
2507 BK Bank of New York Mellon 33.60 3 3 11.1 2.0 1.20 95 - 170 Bank
1613 BIIB Biogen 249.99 3 3 14.4 Nil 1.05 75 - 160 Drug
967 CVS CVS Health 90.51 2 1 15.9 1.9 0.85 50 - 80 Pharmacy Services
802 DVA DaVita HealthCare 62.25 2 2 15.9 Nil 0.90 55 - 110 Medical Services
2332 DIS Disney (Walt) 92.32 2 1 15.8 1.5 1.05 20 - 45 Entertainment
362 DNKN Dunkin’ Brands Group 40.84 2 3 19.2 2.9 0.65 45 - 120 Restaurant
2106 GES Guess Inc. 18.01 4 3 16.4 5.0 1.20 40 - 95 Apparel
2310 HOG Harley-Davidson 38.71 4 3 9.9 3.6 1.15 95 - 195 Recreation
1918 HRL Hormel Foods 41.43 1 1 27.6 1.4 0.75 -5 - 20 Food Processing
187 ISRG Intuitive Surgical 508.82 2 3 27.5 Nil 0.90 25 - 85 Med Supp Invasive
1603 MOS Mosaic Company 23.86 5 3 7.0 4.9 1.30 150 - 275 Chemical (Basic)
2112 PVH PVH Corp. 71.09 4 3 10.4 0.2 1.15 70 - 155 Apparel
419 RSG Republic Services 43.84 3 2 20.4 2.8 0.80 -10 - 25 Environmental
376 SBUX Starbucks Corp. 54.42 1 1 28.6 1.5 0.95 40 - 65 Restaurant
2195 TIF Tiffany & Co. 62.17 4 3 15.0 2.7 1.15 75 - 155 Retail (Hardlines)
817 UNH UnitedHealth Group 111.16 3 1 15.6 1.8 0.90 15 - 45 Medical Services
2573 V Visa Inc. 68.33 2 1 22.8 0.9 0.95 30 - 60 Financial Svcs. (Div.)

To qualify for purchase in the above portfolio, a stock must have worthwhile appreciation potential. Among the factors considered for selection are a stock’s
Timeliness and Safety Rank and its 3- to 5-year appreciation potential. (Occasionally a stock will be unranked (NR), usually because of a short trading history or a
major corporate reorganization.) Stocks in the above portfolio are selected and monitored by Justin Hellman, Editorial Analyst.

PORTFOLIO IV: STOCKS WITH ABOVE-AVERAGE DIVIDEND YIELDS

(primarily suitable for investors interested in current income)

Ratings &
Reports Recent Time- Financial
Page Ticker Company Price liness Safety P/E Yield% Beta Strength Industry Name

921 T AT&T Inc. 36.65 3 1 13.3 5.2 0.75 A++ Telecom. Services
903 LNT Alliant Energy 68.35 2 2 17.8 3.4 0.80 A Electric Util. (Central)
1029 BT BT Group ADR 33.52 2 3 13.4 3.1 1.05 B++ Telecom. Utility
1990 BTI Brit. Amer Tobac. ADR 108.93 3 2 15.9 4.2 0.90 B++ Tobacco
159 CAT Caterpillar Inc. 63.93 4 2 17.6 4.8 1.25 A+ Heavy Truck & Equip
1966 KO Coca-Cola 43.30 3 1 22.4 3.2 0.70 A++ Beverage
142 ED Consol. Edison 73.61 3 1 18.7 3.7 0.55 A+ Electric Utility (East)
1600 DOW Dow Chemical 46.60 NR 3 12.9 3.9 1.40 A Chemical (Basic)
1914 GIS Gen’l Mills 55.94 2 1 19.4 3.2 0.70 A+ Food Processing
106 GM General Motors 27.87 3 3 5.1 5.2 1.20 B++ Automotive
1364 INTC Intel Corp. 28.81 3 1 11.9 3.6 1.05 A++ Semiconductor
1404 IBM Int’l Business Mach. 124.07 4 1 9.9 4.2 0.85 A++ Computers/Peripherals
1195 KMB Kimberly-Clark 130.79 1 1 29.7 2.7 0.65 A++ Household Products
1622 MRK Merck & Co. 49.16 3 1 13.3 3.7 0.80 A++ Drug
1370 MCHP Microchip Technology 41.26 3 2 14.5 3.5 1.10 A Semiconductor
2615 PAYX Paychex, Inc. 46.66 2 1 21.7 3.8 0.90 A IT Services
1631 PFE Pfizer, Inc. 29.10 NR 1 19.3 4.1 0.85 A++ Drug
1992 RAI Reynolds American 47.69 1 2 23.0 3.0 0.65 A Tobacco
153 SO Southern Co. 49.20 3 2 17.4 4.6 0.60 A Electric Utility (East)
424 WM Waste Management 53.28 3 1 19.7 2.9 0.85 A Environmental

To qualify for purchase in the above portfolio, a stock must have a yield that is at least 1% above the median for the Value Line universe, a Timeliness Rank of at least
3, and a Financial Strength Rating of at least B+. If a stock’s Timeliness Rank falls below 4, that stock will be automatically removed. Stocks are selected and
monitored by Adam Rosner, Editorial Analyst.

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
F E B R U A RY 1 9 , 2 0 1 6 VALUE LINE SELECTION & OPINION PAGE 3745

Growth Stocks with Low Risk

This list is designed for investors seek- required that all stocks selected have a ed below comprise an elite group. Mean-
ing stocks with a combination of worth- Safety rank of at least 2 (Above Average). while, many stocks, including some with
while long-term appreciation potential Going one step further, we also set better historical and prospective earnings
and low risk. better-than-average hurdles for the two growth, were eliminated due to their less-
measures that determine the Safety rank. than-stellar marks for Financial Strength
We began by screening for companies We required that each selection have a or their volatile share price movements.
whose share earnings have compound- Financial Strength rating of at least B++ That said, as mentioned, the equities in-
ed at a minimum 8% annual rate over and a score of 85 or more on the Price cluded below are likely to provide inves-
the past five years and which are expect- Stability Index, whose range runs from tors with respectable returns over the
ed to also maintain at least an 8% annual 5 to 100. These factors should help select next 3 to 5 years, reflecting each issue’s
growth rate over the next 3 to 5 years. those companies with low risk profiles. prospects for worthwhile price appreci-
Finally, to guard against near-term un- ation during that time frame.
Next, we pared the list to stocks with derperformance, we required a Timeli-
price appreciation potential of at least ness rank of at least 3 (Average). This is a short list that is weighted to
50% over the next three to five years, those companies operating in the finan-
measured from the mid-point of each is- Given these relatively stringent criteria, cial services and healthcare industries.
sue’s target price range. By way of com- it isn’t surprising that there were not too Those wanting to hold low-risk stocks
parison, the current median appreciation many issues in our universe that made the with good prospects may consider most
potential for the entire Value Line uni- final cut. In fact, selecting growth stocks of the choices listed below. As always,
verse is 70%. Nonetheless, the long-term in the context of worthwhile appreciation we strongly urge investors to consult the
performance of the stocks in this list potential and low risk is a difficult task, individual analyses in Part 3, Ratings &
should be respectable on a risk-adjusted given the uneven prospects for global Reports, before committing to any of
basis. On point, to control for risk, we economic growth. Thus, the stocks list- the issues that appear in this screen.

Annual E.P.S.
Growth
Ratings & 3-5 Year Price Financial
Reports Time- Apprec. Last Next Stability Strength
Page Ticker Company liness Safety Potential 5 Years 5 Years Index Rating Industry

583 AMT Amer. Tower ‘A’ 1 2 65% 27.5% 14.5% 95 B++ Wireless Networking

204 ABC AmerisourceBergen 2 1 50 17.0 13.5 95 A Med Supp Non-Invasive

2537 AON Aon plc 2 1 55 12.0 13.5 90 A+ Financial Svcs. (Div.)

967 CVS CVS Health 2 1 65 11.5 13.0 95 A+ Pharmacy Services

2124 CPRT Copart, Inc. 2 2 75 12.0 12.0 85 A Retail Automotive

1748 DHR Danaher Corp. 1 2 75 12.0 13.0 90 A Diversified Co.

802 DVA DaVita HealthCare 2 2 80 14.5 11.5 90 B++ Medical Services

450 IT Gartner Inc. 1 2 80 18.0 14.5 85 A Information Services

323 JBHT Hunt (J.B.) 3 2 60 15.5 12.0 85 B++ Trucking

1795 ICE Intercontinental Exch. 1 2 55 16.5 13.5 85 A Brokers & Exchanges

809 LH Laboratory Corp. 2 1 70 8.5 9.0 90 A Medical Services

222 MCK McKesson Corp. 3 1 105 16.0 12.0 85 A++ Med Supp Non-Invasive

2568 TROW Price (T. Rowe) Group 3 2 50 15.0 9.5 85 A+ Financial Svcs. (Div.)

420 SRCL Stericycle Inc. 3 2 75 16.5 10.0 90 B++ Environmental

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
PAGE 3746 VALUE LINE SELECTION & OPINION F E B R U A RY 1 9 , 2 0 1 6

Low-Risk Stocks for Worthwhile Total Return

This week, we have screened the Value average pace of inflation that Value Line Of course, the respectable relative price
Line database for stocks that should pro- forecasts for the same period). To tie the momentum and high investment quali-
vide a worthwhile total return on a risk- growth and income criteria together, we ty implied by the above criteria would
adjusted basis. First, we limited the field required an average annual total return suggest limited opportunities for a good
to equities with Safety ranks of 2 over the next three to five years of 13%, dividend yield and worthwhile three- to
(Above Average), or better. By defini- which is favorable given the returns cur- five-year price gains. Indeed, the result-
tion, these are stocks that, in our opin- rently available on low-risk assets. For ing roster is a rather small and elite
ion, have less than normal total risk. reference, we also present the projected group of stocks that appears suitable for
average annual earnings growth over the patient investors who seek worthwhile
Then, we required price appreciation three- to five-year pull for companies total returns, but are also averse to ex-
potential to 2019-2021 of at least 50%, that survived this examination. cess risk.
which is lower than the current median
(70%) but should provide for a respect- Finally, we eliminated all holdings We would advise investors to use this
able risk-adjusted return. Next, we spec- with subpar prospects for market perfor- screen, and all others presented in
ified that the remaining equities must mance over the next six to 12 months. Selection & Opinion, as a starting point
have a current dividend yield of at least That is, equities ranked below 3 for investigating stocks that meet spe-
3.1%, 50 basis points higher than the (Average) for Timeliness were discard- cific investment criteria. We suggest
2.6% median yield for the Value Line ed. This step was taken to screen out that a point for further investigation
universe. We further limited the selec- stocks that are most at risk of underper- would begin by consulting the latest
tion to stocks with projected three- to formance in the near term, in spite of Ratings & Reports page for those
f ive-year average annual dividend their otherwise attractive investment at- stocks of interest.
growth of at least 5.0% (well above the tributes.

Ratings & 3-5 Year 3-5 Year 3-5 Year

Reports E.P.S. Avg. Apprec. Current Div’d Total Time-
Page Ticker Company Name Safety Growth Potential Yield Growth Return liness

1743 BIP Brookfield Infrastruc. 2 84.0% 75% 6.0% 9% 19% 3

946 CSCO Cisco Systems 2 6.5 55 4.6 9 15 3

603 ENB.TO Enbridge Inc. 2 10.0 45 4.7 8 13 3

1364 INTC Intel Corp. 1 10.0 75 3.6 5 17 3

2518 NA.TO Nat’l Bank of Canada 2 6.0 75 6.0 8 19 3

2615 PAYX Paychex, Inc. 1 9.5 55 3.8 9 15 2

2568 TROW Price (T. Rowe) Group 2 9.5 50 3.3 11 13 3

2522 RY.TO Royal Bank of Canada 1 6.0 50 4.9 8 14 3

1185 SON Sonoco Products 2 8.0 55 3.5 7 14 3

1383 TSM Taiwan Semic. ADR 2 16.0 90 3.2 8 19 3

2151 TGT Target Corp. 1 9.0 65 3.3 10 16 3

316 UPS United Parcel Serv. 1 10.5 60 3.2 10 15 2

2396 WPPGY WPP PLC ADR 2 9.5 70 3.5 13 17 2

2528 WFC Wells Fargo 2 5.5 55 3.4 12 15 3

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
F E B R U A RY 1 9 , 2 0 1 6 VALUE LINE SELECTION & OPINION PAGE 3747

Stocks for Dividend Growth with Low Risk

In this screen, we turned our attention points is equivalent to one percentage relative price performance over the next
to low-risk stocks that have good point) higher than the current median six to 12 months.
records for dividend growth. In addi- for all dividend-paying stocks under
tion, our selection criteria focused on our review. For comparative purposes, The set of stocks that made the final cut
those issues that our analysts project to we also show payout ratios (all divi- are not only judged to be safer than
continue providing investors with div- dends as a percentage of net profit) for most, but also possess proven and pro-
idends that are likely to increase at the most recent fiscal year. spective dividend growth rates that have
above-average rates. and are likely to advance at a rate ex-
We then restricted our search to stocks ceeding the average rate of inflation
We began our search with stocks with Safety ranks of at least 2 (Above under the time periods chosen under this
whose dividends have advanced at a Average), and Financial Strength review. We note that although utility
compound annual rate of at least 7% Ratings of B++ or better (B+ is Aver- stocks find representation in this group,
over the last five years. Similarly, we age). Companies whose shares earn its overall composition is broader, in
next narrowed the list to equities with high marks for these metrics generally keeping with most recent screens. As
projected annual dividend growth rates will fare better in volatile markets than usual, we advise investors to carefully
of at least 7% over the next three to five the typical stock under our review. Last- review both full-page and supplementa-
years. We also set a minimum estimat- ly, to reduce the risk of underperfor- ry analyses in our Ratings & Reports
ed yield for the year ahead of 3.1%, mance, we limited the selection to before making commitments to any of
which is 50 basis points (100 basis issues ranked 3 (Average), or better, for the equities on the list of stocks below.

AVG. ANN’L
GROWTH
Ratings & Next Financial
Reports Dividend Time- Payout Last 5 3-5 Strength
Page Ticker Company Yield liness Safety Ratio Years Years Rating Industry

706 BA Boeing 3.7% 3 1 39% 7% 15% A++ Aerospace/Defense

1966 KO Coca-Cola 3.2 3 1 59 9 7 A++ Beverage

143 D Dominion Resources 4.1 2 2 79 7 8 B++ Electric Utility (East)

603 ENB.TO Enbridge Inc. 4.7 3 2 63 14 8 B++ Oil/Gas Distribution

716 LMT Lockheed Martin 3.1 2 1 49 21 10 A++ Aerospace/Defense

2518 NA.TO Nat’l Bank of Canada 6.0 3 2 46 9 8 B++ Bank

148 NEE NextEra Energy 3.1 2 2 51 9 11 A Electric Utility (East)

2568 TROW Price (T. Rowe) Group 3.3 3 2 38 10 11 A+ Financial Svcs. (Div.)

2522 RY.TO Royal Bank of Canada 4.9 3 1 46 7 8 A Bank

550 SJI South Jersey Inds. 4.1 3 2 61 10 7 A Natural Gas Utility

2151 TGT Target Corp. 3.3 3 1 44 22 10 A Retail Store

934 T.TO TELUS Corporation 4.6 3 2 64 9 10 B++ Telecom. Services

2526 TD.TO Toronto-Dominion 4.4 3 2 43 9 8 B++ Bank

316 UPS United Parcel Serv. 3.2 2 1 54 8 10 A Air Transport

918 WEC WEC Energy Group 3.5 2 1 60 20 9 A+ Electric Util. (Central)

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
PAGE 3748 VALUE LINE SELECTION & OPINION F E B R U A RY 1 9 , 2 0 1 6

Equity Funds Average Performance

TOTAL RETURN*
Percent Change through January, 2016
Five Year
Year-to-Date Three Month Six Month One Year (Annualized)
Performance Objective
Aggressive Growth -6.2 -7.7 -10.3 -4.6 5.6
Growth -6.4 -8.9 -11.4 -5.6 7.2
Growth/Income -5.0 -7.5 -9.5 -5.2 7.5
Income -3.6 -6.2 -7.8 -4.9 6.5
Balanced -3.1 -5.2 -6.9 -4.6 4.9

International
European Equity -6.1 -9.1 -13.2 -6.5 2.1
Foreign Equity -5.8 -8.7 -13.2 -10.3 -0.5
Global Equity -5.6 -8.2 -11.5 -6.7 4.3
Pacific Equity -7.2 -9.4 -14.1 -12.4 -1.2

Sector
Energy/Natural Res -7.3 -19.1 -24.4 -29.9 -10.6
Financial Services -9.5 -10.4 -14.2 -3.6 5.7
Health -13.4 -11.6 -22.2 -9.7 16.7
Precious Metals 1.5 -6.1 -0.1 -29.3 -19.7
Real Estate -4.3 -5.2 -4.3 -8.3 7.1
Technology -7.8 -8.8 -9.1 -1.7 7.6
Utilities 1.0 -1.8 -4.2 -6.4 7.9

Other
Convertible -6.2 -8.7 -12.4 -9.6 2.9
Flexible -2.6 -4.8 -6.6 -5.4 3.0
Specialty -4.0 -8.4 -10.9 -10.8 1.5
Small Company -8.0 -10.7 -15.6 -9.4 5.9

S&P 500 -5.0 -6.2 -6.8 -0.7 10.9

Source: The Value Line Fund Advisor

* Dividends plus capital appreciation. Dividends are reinvested as of the ex-dividend date.
The returns are arithmetic averages based on the performances of all funds within each category.

Fixed-Income Funds Average Performance

TOTAL REINVESTMENT*
Percent Change through January, 2016
Five Year
Year-to-Date Three Month Six Month One Year (Annualized)
U.S. Government and Agency Bond
U.S. Gov’t 0.9 — -0.3 -1.8 1.6
GNMA 0.6 0.1 0.2 — 2.3

Corporate Bond
High Quality 0.2 -0.9 -1.0 -2.1 2.3
High Yield -1.4 -5.3 -7.0 -5.6 2.5
International -0.5 -2.5 -3.7 -5.8 0.7

Municipal Bond
California Tax Exempt 1.0 2.1 3.5 2.0 5.7
New York State Tax Exempt 1.0 2.0 3.2 1.7 4.6
National Tax Exempt 0.7 1.4 2.5 1.1 4.3

Source: The Value Line Fund Advisor

* The cumulative rate of investment growth, including the reinvestment of dividend income and capital gains distributions
as of the ex-dividend date. The investment objective averages are arithmetic averages calculated on the basis of the total
reinvested rates of return produced by all funds within each investment objective category.

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
F E B R U A RY 1 9 , 2 0 1 6 VALUE LINE SELECTION & OPINION PAGE 3749

Selected Yields
3 Months Year 3 Months Year
Recent Ago Ago Recent Ago Ago
(2/10/16) (11/11/15) (2/11/15) (2/10/16) (11/11/15) (2/11/15)

TAXABLE
Market Rates Mortgage-Backed Securities
Discount Rate 1.00 0.75 0.75 GNMA 5.5% 1.97 1.85 1.49
Federal Funds 0.25-0.50 0.00-0.25 0.00-0.25 FHLMC 5.5% (Gold) 2.04 2.18 1.49
Prime Rate 3.50 3.25 3.25 FNMA 5.5% 1.65 1.87 1.24
30-day CP (A1/P1) 0.38 0.14 0.13 FNMA ARM 1.81 1.81 1.85
3-month LIBOR 0.62 0.36 0.26 Corporate Bonds
U.S. Treasury Securities Financial (10-year) A 3.45 3.78 3.23
3-month 0.31 0.13 0.01 Industrial (25/30-year) A 4.01 4.44 3.85
6-month 0.41 0.33 0.07 Utility (25/30-year) A 4.00 4.48 3.70
1-year 0.51 0.50 0.23 Utility (25/30-year) Baa/BBB 4.66 4.95 4.05
5-year 1.12 1.72 1.54 Foreign Bonds (10-Year)
10-year 1.67 2.33 2.02 Canada 1.00 1.71 1.45
10-year (inflation-protected) 0.51 0.82 0.35 Germany 0.24 0.61 0.36
30-year 2.49 3.12 2.59 Japan 0.02 0.32 0.40
30-year Zero 2.63 3.25 2.67 United Kingdom 1.41 2.05 1.67
Common Stocks Preferred Stocks
VL Stocks (Median) 2.60 2.20 2.00 Utility A 5.98 5.87 5.93
DJ Industrials (12-mo. est.) 2.90 2.60 2.30 Financial BBB 5.99 6.02 6.57
VL Utilities 3.60 3.88 N/A Financial Adjustable A 5.51 5.51 5.51

TAX-EXEMPT
Treasury Security Yield Curve Bond Buyer Indexes
6.00% 20-Bond Index (GOs) 3.30 3.69 3.49
25-Bond Index (Revs) 3.78 4.05 4.16
5.00% General Obligation Bonds (GOs)
1-year AAA 0.37 0.37 0.16
1-year A 0.50 0.72 0.52
4.00%
5-year AAA 0.90 1.37 1.08
5-year A 1.33 1.96 1.64
3.00% 10-year AAA 1.59 2.22 2.05
10-year A 2.19 3.11 2.68
2.00% 25/30-year AAA 2.55 3.11 2.86
25/30-year A 3.28 4.12 3.75
Revenue Bonds (Revs) (15 Years)
1.00%
Current Education AA 2.58 3.07 2.79
Year-Ago Electric AA 2.33 2.75 2.81
0.00% Housing AA 2.90 3.43 3.30
3 6 1 2 3 5 10 30
Mos. Years Hospital AA 2.59 2.64 2.66
Toll Road AA 2.51 3.05 2.65
Source: Bloomberg Finance L.P.

Federal Reserve Data

BANK RESERVES
(Two-Week Period; in Millions, Not Seasonally Adjusted)
Recent Levels Average Levels Over the Last...
2/3/16 1/20/16 Change 12 Wks. 26 Wks. 52 Wks.
Excess Reserves 2278319 2347268 -68949 2375617 2459684 2485865
Borrowed Reserves 57 54 3 99 164 123
Net Free/Borrowed Reserves 2278262 2347214 -68952 2375518 2459521 2485743

MONEY SUPPLY
(One-Week Period; in Billions, Seasonally Adjusted)
Recent Levels Ann’l Growth Rates Over the Last...
1/18/16 1/11/16 Change 3 mo. 6 mo. 12 mo.
M1 (Currency+demand deposits) 3101.2 3105.5 -4.3 8.6% 4.7% 6.1%
M2 (M1+savings+small time deposits) 12409.3 12400.8 8.5 9.0% 6.5% 6.2%
Source: United States Federal Reserve Bank

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
PAGE 3750 VALUE LINE SELECTION & OPINION F E B R U A RY 1 9 , 2 0 1 6

Tracking the Economy

Nonagricultural Employment Initial Unemployment Insurance Claims

(In Millions - Seasonally Adjusted) Weekly Average in Thousands - Seasonally Adjusted
14 4 500

450
14 0

400
13 6
350

13 2
300

12 8 250
201 0 20 11 201 2 201 3 201 4 2 015 20 16 201 0 2 011 201 2 20 13 201 4 2015 201 6
Source: Bureau of Labor Statistics Source: Department of Labor

Selected Interest Rates Retail Unit Auto Sales

(In Percent) (In Millions at Seasonally Adjusted Annual Rates)
8 24
Federal Funds 10-Yr. Treasury Note 3-Mo. Treasury Bill

6 19

4 14

2 9

0 4
2010 2 0 11 201 2 2013 2014 2015 2016 2010 2 0 11 2012 20 1 3 2 01 4 2015 20 1 6
Source: Federal Reserve Board Source: Bureau of Economic Analysis

Major Insider Transactions†

PURCHASES
Latest
Full-Page Timeliness Shares Shares Price Recent
Report Rank Company Insider, Title Date Traded Held Range Price
2441 2 Air Products & Chem. S. Ghasemi, Chair. 2/1/16 50,000 314,865 $126.00-$127.53 132.46
2542 5 CIT Group S. T. Mnuchin, Dir. 2/4/16 114,623 114,623 $27.77 26.74
2542 5 CIT Group J. A. Thain, Chair. 2/4/16 50,000 486,848 $27.31 26.74
2416 4 CARBO Ceramics W. C. Morris* 2/1/16-2/4/16 76,000 2,784,859 $14.71-$17.50 15.26
2512 4 Cullen/Frost Bankers C. Alvarez, Dir. 1/29/16 40,000 370,000 $47.24 47.58
770 3 Progressive (Ohio) J. F. Auer, Pres. 2/1/16 50,000 106,003 $30.28 30.88
728 4 Triumph Group D. J. Crowley, Pres. 2/2/16-2/4/16 250,000 250,000 $23.65-$27.77 25.09

SALES
Latest
Full-Page Timeliness Shares Shares Price Recent
Report Rank Company Insider, Title Date Traded Held Range Price
525 4 Concho Resources T. A. Leach, Chair. 1/29/16 24,791 726,751 $95.04 85.58
2008 1 Electronic Arts A. Wilson, Dir. 2/1/16 58,000 198,118 $64.09-$64.97 58.25
2182 2 Liberty Interactive J. C. Malone* 2/1/16 100,000 219,837 $25.66 22.68
2336 - Liberty Media Corp. J. C. Malone* 2/1/16 104,000 17,012,220 $35.36 32.15
2587 2 Microsoft Corp. W. H. Gates III, Dir. 2/1/16-2/3/16 5,000,000 209,992,934 $51.93-$54.76 49.28
1798 1 Nasdaq, Inc. H. Jochumsen, Pres. 2/1/16 35,000 9,392 $61.44 61.49
1820 1 salesforce.com M. Benioff, Chair. 2/1/16-2/3/16 37,500 36,475,000 $64.05-$68.54 57.33

* Beneficial owner of more than 10% of common stock.

† Includes only large transactions in U.S.-traded stocks; excludes shares held in the form of limited partnerships, excludes options & family trusts.

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
F E B R U A RY 1 9 , 2 0 1 6 VALUE LINE SELECTION & OPINION PAGE 3751

Market Monitor

13-week 50-week Last market top Last market bottom

Valuations and Yields 2/10 2/3 range range (5-21-2015) (3-9-2009)
Median price-earnings ratio of VL stocks 16.1 16.9 16.1 - 18.1 16.1 - 19.6 19.3 10.3
P/E (using 12-mo. est’d EPS) of DJ Industrials 14.2 14.8 14.2 - 16.2 14.2 - 17.6 16.2 17.3
Median dividend yield of VL stocks 2.6% 2.6% 2.2 - 2.6% 2.0 - 2.6% 2.0% 4.0%
Div’d yld. (12-mo. est.) of DJ Industrials 2.9% 2.9% 2.5 - 2.9% 2.3 - 2.9% 2.4% 4.0%
Prime Rate 3.3% 3.5% 3.3 - 3.5% 3.3 - 3.5% 3.3% 3.3%
Fed Funds 0.4% 0.4% 0.1 - 0.4% 0.1 - 0.4% 0.1% 0.2%
91-day T-bill rate 0.3% 0.3% 0.1 - 0.3% 0.0 - 0.3% 0.0% 0.3%
AAA Corporate bond yield 3.9% 4.0% 3.9 - 4.1% 3.5 - 4.3% 4.1% 5.5%
30-year Treasury bond yield 2.5% 2.7% 2.5 - 3.0% 2.5 - 3.2% 3.1% 3.7%
Bond yield minus average earnings yield -2.3% -1.9% -2.3 - -1.6% -2.3 - -0.9% -1.1% -4.3%
Market Sentiment
Short interest/avg. daily volume (5 weeks) 13.1 13.4 13.1 - 18.1 13.1 - 21.2 20.0 8.6
CBOE put volume/call volume 1.01 .93 .93 - 1.22 .67 - 1.33 .89 .93

VALUE LINE ASSET ALLOCATION MODEL

(Based only on economic and financial factors) INDUSTRY PRICE PERFORMANCE
LAST SIX WEEKS ENDING 2/9/2016
Current (last adjusted at market open 8/31/15) Previous (before 8/31/15)
7 Best Performing Industries
Common Stocks 60%-70% 55%-65% Precious Metals +14.1%
Natural Gas Utility +6.8%
Cash and Treasury Issues 40%-30% 45%-35% Electric Utility (East) +6.8%
Trucking +6.5%
Electric Utility (West) +5.4%
5%
Electric Util. (Central) +4.4%
INTEREST RATES Water Utility +3.7%
4% Prime Rate
30-Year Treasury Bond 7 Worst Performing Industries
3% x —x —x—x—x —x —x—x —x—x
Biotechnology -29.7%
Federal Funds Maritime -28.7%
2%
Previous Pipeline MLPs -27.1%
1% Recent Week Internet -26.7%
Prime Rate 3.3% 3.5% Petroleum (Producing) -25.8%
0% 30-Yr. Treasury 2.5% 2.7% Homebuilding -24.5%
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Fed Funds 0.4% 0.4%
Oilfield Svcs/Equip. -24.4%
148 Index: 12/30/1988 = 100 The corresponding change in the Value Line
Arithmetic Average* is -13.0%
VALUE LINE UNIVERSE
Previous
142 Recent Week

Advances 507 817

136 Declines 1188 874 CHANGES IN FINANCIAL
Issues Covered 1700 1701 STRENGTH RATINGS
Market Value
($ Trillion) 23.751 24.576 Ratings &
130 Prior New Reports
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Company Rating Rating Page
800 Anadarko Petroleum B+ B 2398 *
Bristow Group B++ B 306 *
VALUE LINE UNIVERSE
600 Cenovus Energy B+ B 503 *
New Highs
FEI Company B B++ 121
New Lows OSI Systems B++ A 130
400
Terex Corp. C++ B+ 170
Previous
Recent Week * Supplementary report in this week’s Ratings &
200 Reports.
New Highs 48 80
New Lows 495 320
0
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.
PAGE 3752 VALUE LINE SELECTION & OPINION F E B R U A RY 1 9 , 2 0 1 6

Stock Market Averages

VALUE LINE ESTIMATED P/E, YIELD, APPRECIATION POTENTIAL
VERSUS DOW JONES INDUSTRIALS (JANUARY 3, 2000 - FEBRUARY 9, 2016)

20 000

10 000
Dow Jones Industrials 6 000
(Right Scale)
4 000

2 000
Estimated Appreciation Potential
20 0 (Left Scale) 1 000
10 0
60
40 E stimated P/E
(Left Scale)
20
10
6 Estimated Yield
(Left Scale)
4
2
1
2000 2002 2004 2006 2008 2010 2012 2014 2016

THE VALUE LINE GEOMETRIC AVERAGES THE DOW JONES AVERAGES

Arithmetic*
Composite Industrials Rails Utilities Composite Composite Industrials Transportation Utilities
1673 stocks 1586 stocks 11 stocks 76 stocks 1673 stocks 65 stocks 30 stocks 20 stocks 15 stocks
2/4/2016 409.80 315.85 5761.96 321.41 4049.80 5757.55 16416.58 7051.25 622.07
2/5/2016 400.33 308.27 5682.47 319.95 3959.67 5697.23 16204.97 6942.82 624.62
2/8/2016 392.24 301.74 5675.78 319.81 3882.31 5655.94 16027.05 6924.31 622.95
2/9/2016 389.43 299.48 5724.39 319.50 3856.29 5675.57 16014.38 6996.30 626.77
2/10/2016 389.40 299.48 5692.86 319.10 3857.30 5652.32 15914.74 6983.94 626.02
%Change
last 4 weeks -2.8% -3.3% +10.1% +7.1% -1.8% +1.6% -1.5% +3.9% +8.1%

WEEKLY VALUE LINE GEOMETRIC AVERAGES* (JANUARY 2, 2015 - FEBRUARY 10, 2016)

600 12

Composite 11
Rails
550

10
500
9
450
8

400
7

350 6

300 5
Q1 201 5 Q2 20 15 Q3 201 5 Q4 201 5 Q1 201 6 Q1 2 015 Q2 20 15 Q3 2015 Q4 201 5 Q1 2 016

48 0
Industrials 3 40
Utilities
44 0

3 10
40 0

36 0
2 80

32 0
2 50
28 0

24 0 2 20
Q1 2015 Q2 2 015 Q3 20 15 Q4 2 015 Q 1 20 16 Q1 2 0 15 Q2 20 1 5 Q3 2 0 15 Q4 2 0 15 Q1 2 0 16

Officers, directors, employees and affiliates of Value Line, Inc. (“VLI”), the parent company of Value Line Publishing LLC (“VLP”) and EULAV Asset Management (“EULAV”), may hold stocks that are reviewed or
recommended in this publication. EULAV also manages investment companies and other accounts that use the rankings and recommendations in this publication as part of their investment strategies. These
accounts, as well as the officers, directors, employees and affiliates of VLI, may dispose of a security notwithstanding the fact that The Value Line Investment Survey (the “Survey”) ranks the issuer favorably;
conversely, such accounts or persons may purchase or hold a security that is poorly ranked by the Survey. Some of the investment companies managed by EULAV only hold securities with a specified minimum
Timeliness Rank by the Survey and dispose of those positions when the Timeliness Rank declines or is suspended. Subscribers to the Survey and its related publications as well as some institutional customers
of VLP will have access to all updated Ranks in the Survey by 8:00 AM each Monday. At the same time, portfolio managers for EULAV will receive reports providing Timeliness Ranking information. EULAV’s
portfolio managers also may have access to publicly available information that may ultimately result in or influence a change in rankings or recommendations, such as earnings releases, changes in market
value or disclosure of corporate transactions. The investment companies or accounts may trade upon such information prior to a change in ranking. While the rankings in the Survey are intended to be predictive
of future relative performance of an issuer’s securities, the Survey is not intended to constitute a recommendation of any specific security. Any investment decision with respect to any issuer covered by the
Survey should be made as part of a diversified portfolio of equity securities and in light of an investor’s particular investment objectives and circumstances. Value Line, Value Line logo, The Value Line Investment
Survey, Timeliness are trademarks of Value Line, Inc. *Value Line Arithmetic & Geometric Indices calculated by Thomson Reuters. Information supplied by Thomson Reuters.
© 2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT
RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, To subscribe call 1-800-VALUELINE
stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, ser vice or product.