PRO DUC T GU I DE

The Value Line Investment Survey — ®

Selection & Opinion

Smart research. Smarter investing.™

©2019 Value Line, Inc. All Rights Reserved. Value Line, the Value Line logo, The Value Line Investment Survey, The Most Trusted Name in
Investment Research, “Smart research. Smarter investing.”,Timeliness, and Safety are trademarks or registered trademarks of Value Line, Inc.
and/or its affiliates in the United States and other countries. All other trademarks are the property of their respective owners. Factual material
is obtained from sources believed to be reliable and any information contained herein is provided without warranties of any kind. VALUE
LINE IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN OR ANY DAMAGES OR LOSSES ARISING FROM ANY USE OF
THIS REPORT. This report is strictly for each subscriber’s own, non-commercial, internal use. No part of this report may be reproduced,
resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication,
service or product. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. Value Line
Arithmetic and Geometric indices calculated by Thomson Reuters. Information supplied by Thomson Reuters.  1507511
 TABLE OF CONTENTS

PART 1 Quick Overview 2

PART 2 Economic Materials 2

PART 3 Model Portfolios 4

PART 4 Screens and Stock Selections 6

PART 5 Special Features 6

Product Guide — The Value Line Investment Survey — Selection & Opinion 1
PART 1 — QUICK OVERVIEW and upcoming economic and corporate earnings reports
are also discussed in this section.
Selection & Opinion (S&O) brings you Value Line’s latest
weekly economic and stock market commentary, along with Beneath the Economic and Stock Market Commentary are
a host of additional information that can prove invaluable in the Closing Stock Market Averages as of Press Time. This
overseeing your investments. More specifically, the product table displays the recent prices (current and week ago) and
includes economic data and forecasts, four actively-managed percent changes (one week and 12 months) of the major
Model Portfolios, stock screens, stock highlights, and special market indexes, including the Dow Jones Industrial Aver-
features. If you spend time with the S&O each week, you age, Standard & Poor’s 500 Index, and NASDAQ. Value
will receive unique investment ideas and insights. Line’s two indexes, the Geometric (VALUG) and Arithmetic
(VALUA) are also showcased.
PART 2 — ECONOMIC MATERIALS
Further on in the S&O, Value Line provides the Selected
Each week, Selection & Opinion includes Value Line’s Eco- Yields of a variety of fixed-income securities. For instance,
nomic and Stock Market Commentary, which is composed we provide data on Bank CDs, U.S. Treasuries, Corporate
by Harvey S. Katz, CFA. Mr. Katz is our Chief Economist Bonds, and other taxable securities. On the tax-exempt
and Managing Editor, and has been with Value Line for front, information on Bond Buyer Indexes and General
more than four decades. The economic commentary pro- Obligation Bonds, among other statistics are displayed.
vides readers with the latest hard facts on the state of the Lower down, Federal Reserve Data, such as Bank Reserves
domestic and global economy, as well as our thoughts on and the Money Supply can be found.
the stock market’s current and future prospects. Recent
Tracking The Economy consists of a number of important

AUGUST 16, 2019 VALUE LINE SELECTION & OPINION 1565

Selected Yields
ISSUE 1
Pages 1557-1568
Recent 3 Months Ago Year Ago Recent 3 Months Ago Year Ago
TAXABLE (8/7/19) (5/8/19) (8/8/18) TAXABLE (8/7/19) (5/8/19) (8/8/18)
Market Rates Corporate Bonds
Discount Rate 2.75 3.00 2.50 Financial (10-year) A 2.64 3.39 3.99
August 16, 2019 Federal Funds 2.00-2.25 2.25-2.50 1.75-2.00 Industrial (25/30-year) A 3.43 4.01 4.25
Prime Rate 5.25 5.50 5.00 Utility (25/30-year) A 3.38 4.06 4.28
30-day CP (A1/P1) 2.18 2.43 2.02 Utility (25/30-year) Baa/BBB 3.73 4.40 4.61
3-month LIBOR 2.19 2.56 2.34 S&P 500 High Yield Corp. Bond Index 4.41 4.79 5.11
Dear Subscribers,
ECONOMIC AND STOCK MARKET COMMENTARY U.S. Treasury Securities Foreign Bonds (10-Year)
As part of our ongoing efforts to keep The 3-month 2.01 2.42 2.05 Canada 1.24 1.71 2.36
Value Line Investment Survey the most The waters have turned choppy on Wall on news that Germany’s industrial output
6-month 1.95 2.44 2.23 Germany -0.58 -0.04 0.40
valuable investment resource for our Street, with international storms brewing had fallen sharply. 1-year 1.77 2.38 2.42 Japan -0.19 -0.05 0.11
subscribers, all updated Ranks are now that may continue to affect our economy 5-year 1.55 2.29 2.83 United Kingdom 0.49 1.14 1.31
being released on the Value Line Web Site
by 8:00 A.M. Eastern Time on Mondays. and financial markets. Thus, our market, There also are reasons not to overreact. 10-year 1.73 2.48 2.96 Mortgage-Backed Securities
You can access all the Ranks each week at which had set one record after another, has To wit, our economy is still enjoying 10-year (inflation-protected) 0.18 0.65 0.88 GNMA 5.5% 3.57 3.94 3.44
www.valueline.com by entering your user 30-year 2.25 2.89 3.11 FHLMC 5.5% (Gold) 3.86 3.54 3.78
come under pressure recently. modest, low-inflationary growth, and that 30-year Zero 2.32 2.95 3.12
name and password. We look forward to FNMA 5.5% 3.80 3.52 3.58
continuing to provide you with accurate should persist, despite these headwinds, Common Stocks Preferred Stock
and timely investment research. Thank you. There are reasons for the reversals. First, with the strength in consumer confidence VL Stocks (Median) 2.30 2.20 2.00 Utility A 6.03 6.02 6.04
there’s the Federal Reserve, which had and healthy levels of household spending DJ Industrials (12-mo. est.) 2.50 2.50 2.30 Financial BBB 5.99 6.00 5.92
unnerved investors in July—even though it being key catalysts. Also, there is the Fed, VL Utilities 3.30
30 Year
3.30 3.40 Financial Adjustable A 5.50 5.50 5.50

The Value Line View reduced interest rates—by voicing indeci- which despite its hesitation, is likely to
sion about future rate action. Investors had continue cutting interest rates, especially TAX-EXEMPT

In This Issue sought assurances there would be a steady if the new tariffs put downward pressure Bond Buyer Indexes

The Value Line View 1557

stream of reductions going forward. Then, on global growth as seems likely. Finally, Treasury Security Yield Curve 20-Bond Index (GOs)
25-Bond Index (Revs)
3.42
3.90
3.73
4.21
3.95
4.45
there is the economy, which is giving off there is earnings season, which is ending 6.00%
Model Portfolios: Recent Developments 1558 General Obligation Bonds (GOs)
mixed signals, with strong consumer con- on a decent note and should continue 1-year AAA 0.94 1.52 1.47
Stock Highlight: Argo Group fidence and steady income gains, offset by to be a modest counterweight as things 1-year A 1.03 1.78 1.66
5.00%
International Holdings 1561 slower manufacturing growth and uneven stand now. 5-year AAA 0.98 1.58 1.98
Income Stocks with Worthwhile Total employment trends. 5-year A 1.18 1.93 2.34
10-year AAA 1.31 1.77 2.50
Return Potential 1562 All in all, there is still a bullish case to be 4.00%
10-year A 1.69 2.22 2.97
Growth Stocks with Low Risk 1563 But the biggest thorn in Wall Street’s made, which suggests that the latest selling 25/30-year AAA 1.96 2.40 3.01
Selection & Opinion Index 1564 side is trade, with the President announc- may be more of a short-term adjustment 3.00% 25/30-year A 2.49 2.87 3.89
Selected Yields 1565 ing plans to impose tariffs on virtually all than a longer-term correction—unless Revenue Bonds (Revs) (15 Years)
Federal Reserve Data 1565
of China’s exports. Such a move figures global woes worsen significantly. 2.00%
Education AA 1.92 2.27 3.02
to depress investment spending and put Current Electric AA 2.30 2.45 2.98
Tracking the Economy 1566 Water/Sewer AA 1.92 2.29 3.05
added pressure on GDP. China, meantime, Conclusion: For now, we consider Wall 1.00%
Year-Ago
Hospital AA 1.94 2.46 3.26
Major Insider Transactions 1566
is retaliating, by allowing its currency to Street’s recent stumbles to be an oppor- 3 6 1 2 3 5 10 30 Toll Road AA 1.91 2.34 3.11
Market Monitor 1567 Mos. Years
fall in order to stimulate exports. This tit- tunity to get into stocks at more attractive Source: Bloomberg Finance L.P.
Value Line Asset Allocation Model 1567 for-tat showed no signs of abating as we levels. Please refer to the inside back cover
Industry Price Performance 1567 went to press. Also unnerving were added of Selection & Opinion for our statistically-
declines in U.S. Treasury note and global based Asset Allocation Model’s current
Federal Reserve Data
Changes in Financial Strength Ratings 1567
Stock Market Averages 1568 bond yields, with these returns skidding reading. ■
The Selection & Opinion Index appears in this BANK RESERVES (Two-Week Period; in Millions, Not Seasonally Adjusted)
issue on page 1564. Recent Levels Average Level Over the Last...
CLOSING STOCK MARKET AVERAGES AS OF PRESS TIME
In Three Parts: Part 1 is the Summary & Index. 7/31/19 7/17/19 Change 12 Wks. 26 Wks. 52 Wks.
%Change %Change
This is Part 2, Selection & Opinion. Part 3 is 7/31/2019 8/7/2019 1 week 12 months Excess Reserves 1384926 1381030 3896 1382303 1441899 1558626
Ratings & Reports. Volume LXXV, Number 1. Borrowed Reserves 127 118 9 82 52 112
Dow Jones Industrial Average 26864.27 26007.07 -3.2% +1.5%
Net Free/Borrowed Reserves 1384799 1380912 3887 1382220 1441846 1558514
Published weekly by VALUE LINE PUBLISHING LLC Standard & Poor’s 500 2980.38 2883.98 -3.2% +0.9%
551 Fifth Avenue, New York, NY 10176
N.Y. Stock Exchange Composite 13066.60 12632.96 -3.3% -2.8%
© 2019 Value Line, Inc. All rights reserved. Factual material is obtained
from sources believed to be reliable and is provided without warranties NASDAQ Composite 8175.42 7862.83 -3.8% -0.3% MONEY SUPPLY (One-Week Period; in Billions, Seasonally Adjusted)
of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR NASDAQ 100 7848.78 7551.90 -3.8% +1.2%
OMISSIONS HEREIN. This publication is strictly for each subscriber’s own, Recent Levels Annual Growth Rates Over the Last...
non-commercial, internal use. No part of this publication may be reproduced, Amex Major Market Index 2539.64 2416.74 -4.8% -9.9%
resold, stored or transmitted in any printed, electronic or other form, or Value Line (Geometric) 534.33 508.02 -4.9% -13.1% 7/22/19 7/15/19 Change 3 Mos. 6 Mos. 12 Mos.
used for generating or marketing any printed or electronic publication,
service or product. Officers, directors, employees and affiliates of Value Value Line (Arithmetic) 6274.03 5981.15 -4.7% -8.1% M1 (Currency+demand deposits) 3832.1 3816.2 15.9 8.9% 5.3% 4.3%
Line, Inc. (“VLI”) and EULAV Asset Management, LLC (“EULAV”), may own
London (FT-SE 100) 7586.78 7198.70 -5.1% -6.7% M2 (M1+savings+small time deposits) 14881.7 14827.2 54.5 10.5% 6.3% 5.1%
stocks that are reviewed or recommended in this publication. Nothing
herein should be construed as an offer to buy or sell securities or to give Tokyo (Nikkei) 21521.53 20516.56 -4.7% -9.5% Source: United States Federal Reserve Bank
individual investment advice.
See back cover for important disclosures. Russell 2000 1574.61 1500.69 -4.7% -11.1%
© 2019 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, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.
To subscribe call 1-800-VALUELINE

The front page of Selection & Opinion Selected Yields

Product Guide — The Value Line Investment Survey — Selection & Opinion 2
charts that showcase the current state of the domestic factors. Before considering this allocation, it is important
economy. Included in this section, for example, are visual for investors to evaluate their individual goals, investment
representations of the Trade Deficit, New Home Sales, and time horizon, risk preferences, and view of the emotional
Manufacturing Index. We also include information on element, or current “sentiment” in the market.
Major Insider Transactions, where investors can view the
To the right of the Allocation Model, S&O provides a list
recent stock trades (purchases and sales) of officers and/or
of the best and worst performing industries over the past
directors of the issuers of the approximately 1,700 equities
six weeks. The industries are derived from The Value Line
that are tracked in The Value Line Investment Survey.
Investment Survey, which tracks approximately1,700 stocks
The Market Monitor page provides key pertinent statistics across nearly 100 industries. Also in this area of the page is
about the universe of equities our analysts cover, such as the a list of any Financial Strength changes that occurred over
median P/E ratio and average dividend yield. Data pertain- the course of the past week. Financial Strength is one of
ing to important domestic yields, like the Prime Rate and Value Line’s key proprietary ratings, and is a measure of the
Federal Funds Rate can be found here, as well. company’s financial condition. It is reported on a scale of
A++ (Highest) to C (Lowest), in nine increments.
Just below these statistics is the Value Line Asset Alloca-
tion Model. This feature is maintained by senior staff, In sum, Value Line’s Selection & Opinion contains numerous
and represents Value Line’s view of the proper investment data points and information that enable readers to gain a
allocation in the current market. Value Line’s opinion, firm understanding of the current state, and future prospects,
for this model, is based only on economic and financial of the economy and stock market. These metrics can help
investors make sound financial decisions.

1566 VALUE LINE SELECTION & OPINION AUGUST 16, 2019 AUGUST 16, 2019 VALUE LINE SELECTION & OPINION 1567

Tracking the Economy Market Monitor

Last market top Last market bottom

Merchandise Trade Deficit ISM - Manufacturing Index Valuations and Yields 8/7 7/31 13-week range 50-week range (7-26-2019) (3-9-2009)
3-Month Average (In Billions) (Seasonally Adjusted)
70 Median price-earnings ratio of VL stocks 16.2 17.3 16.2 - 17.3 14.3 - 18.5 17.3 10.3
2 20 Imports P/E (using 12-mo. est’d EPS) of DJ Industrials 15.7 17.0 15.4 - 17.3 14.1 - 17.3 17.0 17.3
Median dividend yield of VL stocks 2.3% 2.2% 2.2 - 2.3% 2.0 - 2.6% 2.2% 4.0%
1 80 60 Div’d yld. (12-mo. est.) of DJ Industrials 2.5% 2.5% 2.4 - 2.6% 2.2 - 2.7% 2.5% 4.0%
Prime Rate 5.3% 5.3% 5.3 - 5.5% 5.0 - 5.5% 5.3% 3.3%
Fed Funds 2.1% 2.4% 2.1 - 2.4% 1.9 - 2.5% 2.4% 0.2%
1 40 Deficit
50 91-day T-bill rate 2.0% 2.1% 2.0 - 2.4% 2.0 - 2.5% 2.1% 0.3%
AAA Corporate bond yield 3.2% 3.3% 3.2 - 3.7% 3.2 - 4.2% 3.3% 5.5%
1 00
Exports 30-year Treasury bond yield 2.3% 2.5% 2.3 - 2.8% 2.3 - 3.4% 2.5% 3.7%
40
Bond yield minus average earnings yield -3.0% -2.5% -3.0 - -2.2% -3.0 - -1.4% -2.5% -4.3%
60 2013 2 01 4 20 1 5 2016 2017 2018 2019
201 3 2014 201 5 20 16 201 7 201 8 201 9
Source: Bureau of the Census Source: Institute for Supply Management Short interest/avg. daily volume (5 weeks)
Short interest/avg. daily volume (5 weeks) 17.6 17.6 15.5 - 17.6 11.8 - 19.1 17.6 8.6
CBOE put volume/call volume 1.16 .88 .82 - 1.18 .67 - 1.41 .88 .93
Nonagricultural Employment ISM - Nonmanufacturing Index
(In Millions - Seasonally Adjusted) (Seasonally Adjusted)
78
15 2 VALUE LINE ASSET ALLOCATION MODEL (Based only on economic and financial factors) INDUSTRY PRICE PERFORMANCE
68
LAST SIX WEEKS ENDING 8/6/2019
14 8
Current Previous
14 4 (last adjusted at market open 4/5/19) (before 4/5/19) 7 Best Performing Industries
14 0
58
Common Stocks 60%–70% 55%–65% Precious Metals +15.9%
Cash and Treasury Issues 40%–30% 45%–35% Office Equip/Supplies +15.2%
13 6
48 Homebuilding +9.9%
13 2
Publishing +9.4%
12 8
2013 2014 2015 2016 2017 2018 2019
38
2013 2014 2015 2016 2017 2018 2019 INTEREST RATES Trucking +8.2%
Source: Bureau of Labor Statistics Source: Institute for Supply Management 8%
Semiconductor +6.8%
7% Previous
Recent Week Semiconductor Equip +5.5%
6%
Prime Rate 5.3% 5.3% 7 Worst Performing Industries
5%
Major Insider Transactions† 4%
30-Yr. Treasury
Fed Funds
2.3%
2.1%
2.5%
2.4%
Natural Gas (Div.)
Oilfield Svcs/Equip
-20.0%
-15.0%
3%
2% Prime Rate
Engineering & Const -11.7%
1% Metal Fabricating -11.0%
PURCHASES 30-Yr. Treasury
Petroleum (Producing) -10.9%
0% Fed Funds
Latest Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Paper/Forest Products -8.9%
Full-Page Report Company Insider, Title Date Shares Traded Shares Held Price Range Recent Price Chemical (Specialty) -8.4%
1607 AbbVie Inc. H. O. Gosebruch, EVP 7/29/2019 30,000 75,763 $67.28 64.77 148 Index: 12/30/1988 = 100
VALUE LINE UNIVERSE The corresponding change in the Value Line
1607 AbbVie Inc. R. S. Austin, Dir. 7/30/2019 10,000 62,114 $66.35 64.77
Previous Arithmetic Average* is -1.6%
1616 Bristol-Myers Squibb R. J. Bertolini, Dir. 7/31/2019 11,000 11,397 $44.72 45.69
142 Recent Week
526 Cabot Oil & Gas ‘A’ P. B. Delaney, Dir. 7/30/2019 9,000 23,725 $19.28-$19.30 17.29
Advances 242 1066
796 Centene Corp. J. L. Blume, Dir. 7/26/2019 2,850 10,000 $52.99 48.95
Declines 1454 621
572 Grace (W.R.) & Co. H. A. La Force, Pres. 8/1/2019 4,000 96,391 $69.04 67.20 136 Issues Covered 1705 1710
110 Tesla, Inc. R. M. Denholm, Dir. 7/29/2019 1,000 1,000 $232.72 230.75
Market Value
35.924 37.650
($ Trillion)
SALES 130
Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 CHANGES IN FINANCIAL
Latest STRENGTH RATINGS
Full-Page Report Company Insider, Title Date Shares Traded Shares Held Price Range Recent Price 1200 Ratings &
VALUE LINE UNIVERSE Prior New
2120 AutoNation, Inc. E. S. Lampert* 7/25/2019 156,819 10,241,337 $48.57 47.81 Company Reports
1000 Rating Rating
435 CoStar Group A. C. Florance, Pres. 7/26/2019 24,210 96,298 $628.64 594.74 Previous Page
800 Recent Week Coherent, Inc. A B++ 117
2630 Manhattan Assoc. E. Capel, Pres. 7/29/2019 40,000 261,357 $87.48 82.60
New Highs 90 265 Keysight Techn. B++ A 123
720 Raytheon Co. D. C. Wajsgras, Officer 7/25/2019 50,000 112,926 $190.00 184.83 600 New Lows 231 71
2653 Snap Inc. E. Spiegel* 7/25/19-7/26/19 2,780,306 67,223,248 $18.00-$18.01 16.29
110 Tesla, Inc. J. B. Straubel, Officer 7/29/2019 15,000 276,398 $226.86-$235.80 230.75 400 New Highs

446 TransUnion C. A. Cartwright, Pres. 7/29/2019 44,040 155,978 $83.30 80.17 200 New Lows

* Beneficial owner of more than 10% of common stock 0

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
† Includes only large transactions in U.S.-traded stocks; excludes shares held in the form of limited partnerships, excludes options & family trusts

© 2019 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. © 2019 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, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.
To subscribe call 1-800-VALUELINE 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, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.
To subscribe call 1-800-VALUELINE

Tracking the Economy Market Monitor and Value Line

Asset Allocation Model

Product Guide — The Value Line Investment Survey — Selection & Opinion 3
PART 3 — MODEL PORTFOLIOS
For those individuals that want more direct guidance in regard to stock selections, our S&O contains four Model Port-
folios, each one with a specific investment objective. The portfolios are actively managed, updated each week, and always
contain 20 equities each.

Portfolio I, Stocks with Above-Average PORTFOLIO I: STOCKS WITH ABOVE-AVERAGE YEAR-AHEAD PRICE POTENTIAL

Year-Ahead Price Potential, is oriented Primarily suitable for more aggressive investors
Ratings &
to expected price performance approxi- Reports
Page Ticker Company
Recent
Price Timeliness Safety P/E Yield% Beta
Financial
Strength Industry Name

mately six to 12 months ahead. It is primar- 2639

2541
GOOG
AXP
Alphabet Inc.
Amer. Express
1169.95
122.55
2
2
1
1
21.0
14.6
Nil
1.4
1.05
1.05
A++
A++
Internet
Financial Svcs. (Div.)

ily suitable for investors who wish to take 2544

1967
AON
BFB
Aon plc
Brown-Forman ‘B’
187.39
54.19
1
2
1
1
19.6
29.0
0.9
1.2
0.95
0.80
A+
A
Financial Svcs. (Div.)
Beverage
356 CBRL Cracker Barrel 167.49 2 2 17.3 3.1 0.70 A Restaurant
more risk in hopes of greater returns than 388 G Genpact Limited 38.02 2 2 18.8 0.9 0.80 B++ Industrial Services
1139 HD Home Depot 208.80 2 1 20.5 2.6 1.05 A++ Retail Building Supply
might be afforded in Portfolios II or III. 1919
440
HRL
INFO
Hormel Foods
IHS Markit
40.52
63.12
2
1
2
3
21.6
24.3
2.2
Nil
0.65
1.05
A
B++
Food Processing
Information Services

To qualify for purchase, stocks have to be 806

1012
IQV
EL
IQVIA Holdings
Lauder (Estee)
154.45
179.56
1
1
3
2
23.4
30.6
Nil
1.0
0.95
0.90
B+
A
Medical Services
Toiletries/Cosmetics

ranked 1 (Highest) or 2 (Above Average) for 2127

184
LAD
MDT
Lithia Motors
Medtronic plc
128.77
101.24
1
1
3
1
11.7
18.4
0.9
2.1
1.20
0.85
B++
A++
Retail Automotive
Med Supp Invasive

Timeliness. To reduce portfolio turnover (and 957

1980
MSI
PEP
Motorola Solutions
PepsiCo, Inc.
171.58
126.45
1
2
2
1
21.9
20.0
1.3
3.0
0.95
0.75
B++
A++
Telecom. Equipment
Beverage

recognizing the fact that many good growth

444 SPGI S&P Global 245.82 2 2 26.5 0.9 1.10 A Information Services
2151 TGT Target Corp. 82.77 2 3 13.7 3.2 0.90 A Retail Store
774 TRV Travelers Cos. 145.96 2 1 14.2 2.2 0.85 A++ Insurance (Prop/Cas.)
stocks go up and down in price along the 790 USB U.S. Bancorp 53.56 2 1 12.3 2.9 1.00 A Bank (Midwest)
819 UHS Universal Health `B’ 146.39 2 3 14.3 0.5 0.95 B++ Medical Services
way), a stock may be held until it drops to 3 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,
(Average) for Timeliness, and then it must be Senior Analyst.

sold. We attempt to diversify the holdings as

Portfolio I: Stocks with Above-Average
much as possible, but note that the Timeliness Year-Ahead Price Potential
Rank tends to favor high earnings growth
issues that may cluster in a few industries;
they can also be more volatile than average.
PORTFOLIO II: STOCKS FOR INCOME AND POTENTIAL PRICE APPRECIATION

Portfolio II, Stocks for Income and Potential Primarily suitable for more conservative investors
Ratings &
Price Appreciation, combines an investment Reports
Page Ticker Company
Recent
Price Timeliness Safety P/E Yield% Beta
Financial
Strength Industry Name

objective for above-average income with a 917

1583
T
ARLP
AT&T Inc.
Alliance Resource
33.96
16.46
1
2
1
3
9.4
6.9
6.1
13.1
0.75
1.20
A++
B+
Telecom. Services
Metals & Mining (Div.)

limitation on risk. This portfolio is suitable

2510 CM.TO Can. Imperial Bank 99.83 3 1 8.2 5.8 0.85 A+ Bank
505 CVX Chevron Corp. 119.38 3 1 15.9 4.0 1.20 A++ Petroleum (Integrated)
356 CBRL Cracker Barrel 167.49 2 2 17.3 3.1 0.70 A Restaurant
for more-conservative investors. To qualify 307 DAL Delta Air Lines 58.79 3 3 8.2 2.7 1.15 B+ Air Transport
1974 DEO Diageo plc 163.74 3 1 24.8 2.1 0.90 A+ Beverage
for purchase, a stock’s yield (the estimated an- 628
575
EPD
IFF
Enterprise Products
Int’l Flavors & Frag.
28.97
118.91
3
1
3
1
14.4
17.8
6.1
2.6
1.30
0.85
B++
A+
Pipeline MLPs
Chemical (Specialty)

nual dividend for the next 12 months divided 214

613
JNJ
KMI
Johnson & Johnson
Kinder Morgan Inc.
130.77
20.03
3
3
1
3
18.0
19.8
2.9
5.0
0.85
1.45
A++
B
Med Supp Non-Invasive
Oil/Gas Distribution

by the recent stock price) must be higher 716

1140
LMT
LOW
Lockheed Martin
Lowe’s Cos.
366.78
97.92
2
3
1
2
25.3
16.7
2.5
2.2
0.80
1.10
A++
A+
Aerospace/Defense
Retail Building Supply

than the median yield for all approximately 1930

959
MDLZ
NOK
Mondelez Int’l
Nokia Corp. ADR
52.83
5.35
3
3
2
3
20.8
15.7
2.2
4.1
0.95
0.90
A
B+
Food Processing
Telecom. Equipment
1637 PFE 36.95 NR 1 18.8 3.9 0.90 A++ Drug
1,700 stocks Value Line follows. The stock 1542 O Realty Income Corp. 69.87 3 2 51.4 4.1 0.65 A R.E.I.T.
2319 RCL Royal Caribbean 107.06 2 3 10.6 2.6 1.15 B++ Recreation
must also have a Safety rank of 3 or better. 315 UPS United Parcel Serv. 115.00 3 1 14.8 3.3 0.95 A Air Transport
417 WM Waste Management 116.10 1 1 26.6 1.8 0.75 A Environmental
The higher-than-average yields provide sup- 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 and a Safety Rank of 3 or better.
Stocks are selected and monitored by Wayne Nef, Senior Analyst.
port to the shares in down markets. This
portfolio tends to be less volatile because the Portfolio II: Stocks for Income and Potential Price Appreciation
companies, as a whole, are more likely to be
mature and predictable.

Product Guide — The Value Line Investment Survey — Selection & Opinion 4
Portfolio III, Stocks with Long-Term Price PORTFOLIO III: STOCKS WITH LONG-TERM PRICE GROWTH POTENTIAL

Growth Potential, is based on the fundamen- Primarily suitable for investors with a 3- to 5-year horizon
Ratings & 3- to 5-Yr.
tal research of our staff of research analysts. Reports
Page Ticker Company
Recent
Price Timeliness Safety P/E Yield% Beta
Apprec.
Potential Industry Name

This portfolio is suitable for investors with a 2589

756
ADBE
ALL
Adobe Inc.
Allstate Corp.
286.21
103.87
3
3
2
1
47.4
11.3
Nil
1.9
1.15
0.85
30-75% Computer Software
55-95 Insurance (Prop/Cas.)

3- to 5-year horizon; in terms of risk, it falls 1990

1396
MO
AAPL
Altria Group
Apple Inc.
46.16
197.00
3
3
2
2
10.8
16.3
6.9
1.6
0.70
1.05
60-115
30-75
Tobacco
Computers/Peripherals

somewhere between Portfolios I and II. This 2120

2508
AN
BK
AutoNation, Inc.
Bank of NY Mellon
47.81
45.45
3
3
3
2
10.7
11.5
Nil
2.7
1.10
1.10
45-120
75-140
Retail Automotive
Bank
435 CSGP CoStar Group 594.74 2 3 55.2 Nil 1.10 0-50 Information Services
portfolio tends to be the most flexible, allowing 2330 DIS Disney (Walt) 141.87 2 1 18.0 1.2 0.95 15-35 Entertainment
2010 EA Electronic Arts 90.10 3 3 23.8 Nil 1.00 40-105 Entertainment Tech
purchases of a broader array of companies. It 2647 FB Facebook Inc. 184.51 2 3 21.4 Nil 1.10 80-175 Internet
308 FDX FedEx Corp. 161.19 4 1 10.9 1.8 1.25 90-135 Air Transport
is constructed under the principles of modern 1919
1360
HRL
INTC
Hormel Foods
Intel Corp.
40.52
46.96
2
4
2
1
21.6
10.6
2.2
2.7
0.65
1.05
25-60
90-125
Food Processing
Semiconductor

portfolio theory, which state that the risk of 1164

2112
IP
PVH
Int’l Paper
PVH Corp.
39.97
77.86
3
3
3
3
10.2
7.4
5.0
0.2
1.25
1.20
115-215
120-220
Paper/Forest Products
Apparel

a portfolio should be viewed within the con- 412

312
RSG
LUV
Republic Services
Southwest Airlines
88.03
49.71
2
3
2
3
26.4
10.1
1.8
1.4
0.75
1.20
0-35
70-150
Environmental
Air Transport

text of the portfolio as a whole, rather than 371

818
SBUX
UNH
Starbucks Corp.
UnitedHealth Group
95.34
248.28
1
2
1
1
32.4
16.1
1.7
1.7
0.95
1.00
5-30
25-55
Restaurant
Medical Services

judging the portfolio according to the aver- 2582 V Visa Inc. 172.48 2 1 29.3 0.6 1.00 30-55 Financial Svcs. (Div.)

To qualify for purchase in the above portfolio, a stock must have above-average 3- to 5-year price-appreciation potential. As the price of a stock in this
age rankings of individual securities it holds. Portfolio rises, the computed appreciation potential may fall; it may still be held. This portfolio is most appropriate for investors focused on long-term
capital gains. Stocks in the above portfolio are selected and monitored by Justin Hellman, Editorial Analyst.

To that end, this portfolio is generally well

diversified, comprising stocks in a variety of Portfolio III: Stocks with Long-Term Price Growth Potential
different non-related industries.
Portfolio IV focuses on stocks with above- PORTFOLIO IV: STOCKS WITH ABOVE-AVERAGE DIVIDEND YIELDS

average dividend yields. Investors seeking Ratings &

Primarily suitable for investors interested in current income

current income are likely to find interest Reports

Page Ticker Company
Recent
Price Timeliness Safety P/E Yield% Beta
Financial
Strength Industry Name

here. Stocks selected for the portfolio must 917

903
T
LNT
AT&T Inc.
Alliant Energy
33.96
50.44
1
1
1
2
9.4
22.0
6.1
2.8
0.75
0.60
A++
A
Telecom. Services
Electric Util. (Central)
2453 BX Blackstone Group 45.81 NR 3 16.1 4.2 1.25 B++ Public/Private Equity
have a yield at least 1% above the median 706 BA Boeing 332.45 3 2 18.5 2.6 1.15 A++ Aerospace/Defense
1991 BTI Brit. Am. Tobacco ADR 36.27 4 2 8.2 7.5 0.95 B++ Tobacco
of all dividend-paying stocks tracked in The 152
1968
CAT
KO
Caterpillar Inc.
Coca-Cola
122.08
52.27
4
2
2
1
10.3
24.7
3.4
3.1
1.30
0.65
A+
A++
Heavy Truck & Equip
Beverage
Value Line Investment Survey, and a Financial 137
984
ED
ETN
Consol. Edison
Eaton Corp. plc
86.63
78.89
3
2
1
2
20.9
13.2
3.5
3.6
0.45
1.20
A+
A+
Electric Utility (East)
Auto Parts

Strength rating of at least a B+ (average) at the 1360

1193
INTC
KMB
Intel Corp.
Kimberly-Clark
46.96
134.52
4
3
1
1
10.6
19.8
2.7
3.1
1.05
0.75
A++
A+
Semiconductor
Household Products

time of purchase. Although the senior analyst 579

365
LYB
MCD
LyondellBasell Inds.
McDonald’s Corp.
75.80
214.08
3
3
3
1
7.0
26.2
5.5
2.2
1.40
0.80
A
A++
Chemical (Specialty)
Restaurant

managing Portfolio IV may sell a holding at

1629 MRK Merck & Co. 84.35 1 1 17.5 2.6 0.95 A++ Drug
2632 PAYX Paychex, Inc. 82.27 1 1 27.1 3.2 0.95 A IT Services
1637 PFE 36.95 NR 1 18.8 3.9 0.90 A++ Drug
any time, replacing it with a new stock with 1563 PRU Prudential Fin’l 86.23 3 3 6.6 4.6 1.30 B++ Insurance (Life)
146 SO Southern Co. 56.94 3 2 18.0 4.4 0.50 A Electric Utility (East)
better prospects, any stock whose Timeliness 315
417
UPS
WM
United Parcel Serv.
Waste Management
115.00
116.10
3
1
1
1
14.8
26.6
3.3
1.8
0.95
0.75
A
A
Air Transport
Environmental

rank falls below 4 is automatically replaced. 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, and a Financial
Strength Rating of at least B+. Stocks are selected and monitored by Adam Rosner, Editorial Analyst.
Despite the focus on current income, stocks
are typically selected from a broad range of
Portfolio IV: Stocks with Above-Average Dividend Yields
industries, providing a meaningful degree of
diversification. The portfolio’s risk profile will
likely be less than the broader market, given
the typical concentration of low-Beta stocks.

Product Guide — The Value Line Investment Survey — Selection & Opinion 5
PART 4 — SCREENS AND PART 5 — SPECIAL FEATURES
STOCK SELECTIONS A selection of special articles and analyses are also found
Most weeks, the S&O contains at least one stock screen in S&O each quarter. Among these are the “Quarterly
that can provide readers with additional investment ideas. Economic Review”, an in-depth look at the domestic
These screens are usually derived from one or more of Value economy complete with forecasts for a broad range of
Line’s proprietary systems, and full reports on the particular economic statistics, and the “Stock Market Review”, an
stocks mentioned can be found in The Value Line Investment analysis of the market’s twists and turns in the most recent
Survey. Some of the screens that commonly appear in the quarter. In “Sector Analysis”, S&O takes a broad view of
S&O are listed below. the stocks in the Investment Survey, focusing on the relative
performance of 10 market sectors. “The 30 Largest Market
• Stocks for Dividend Growth with Low Risk
Capitalizations” is also found quarterly, featuring a review
• Stocks with High Expected Appreciation in the and table of 30 of the largest market cap stocks found in
Next Eighteen Months The Value Line Investment Survey.
• Stocks for Long-Term Gains
• Income Stocks with Worthwhile
Total Return Potential
Stock Highlights are also frequently published in the
Selection & Opinion. When an equity appears to hold signifi-
cant investor appeal, an experienced Value Line analyst will
often create a detailed and thorough review of the company
and provide the particular investment merits of the issue.

Product Guide — The Value Line Investment Survey — Selection & Opinion 6
Value Line Publishing LLC
551 Fifth Avenue
New York, NY 10176-0001
[email protected]

www.valueline.com www.valuelinepro.com www.valuelinelibrary.com

1-800-VALUELINE (1-800-825-8354)