Chevron, Exxon and MasterCard Headline Earnings

Richard Suttmeier
October 30, 2013

NEW YORK ( TheStreet) -- Today's buy-and-trade earnings previews focus on energy giants and Dow components Exxon Mobil reporting premarket Thursday and Chevron reporting premarket Friday, and MasterCard reporting premarket Thursday.

Today, we look at seven companies in six sectors; two from the oils-energy sector and one each in these sectors; basic materials, business services, construction, consumer discretionary and medical.

The ValuEngine valuation warning remains in place with 78.1% of all stocks being overvalued, 48.3% by 20% or more, and 15 of 16 sectors are overvalued by double-digit percentages, 11 by 21.4% to 27.4%.

The basic materials sector is 2.6% undervalued with an underweight rating. Of the 399 stocks in this sector 58.9% have sell or strong sell ratings.

The business services sector is 25.7% overvalued with an equal-weight rating. Of the 236 stocks in this sector 61.4% have hold ratings.

The construction sector is 17.4% overvalued with an underweight rating. Of the 158 stocks in this sector 55.7% have sell or strong sell ratings.

The consumer discretionary sector is 27.4% overvalued with an equal-weight rating. Of the 400 stocks in this sector 83% have hold ratings.

The oils-energy sector is 10.1% overvalued with an underweight rating. Of the 553 stocks in this sector 32% have sell or strong sell ratings.

The medical sector is 21.4% overvalued with an equal-weight rating. Of the 782 stocks in this sector 57.9% have hold ratings.

None of the seven stocks in today's table have buy ratings. Six have hold ratings and one has a sell rating. Only one stock is undervalued by 30.3%, while one is overvalued by 51.7%. One is down 48.1% over the last 12 months, while four have gains between 20.4% and 67.0%. Two stocks are below their 200-day simple moving averages, one is just above its 200-day and four are well above, which reflects the risk of reversion to the mean.


Reading the Table

OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.

Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.

Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.

Value Level: Price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.

Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: Price at which to enter a GTC limit order to sell on strength.

Chevron ($121.50) broke below its 200-day SMA on Oct. 3 trading as low as $114.44 on Oct. 10 and today the stock is above its 200-day at $120.34. The hold rated energy company and Dow component has a semiannual value level at $113.49 with an annual pivot at $122.26 and annual risky level at $123.08.

MasterCard ($732.44) set another multi-year high at $737.83 on Tuesday. The hold rated credit card company has a semiannual value level at $593.62 with a quarterly pivot at $711.16 and weekly risky level at $769.67.

Mohawk Industries ($134.08) set its multi-year high at $134.74 on Sept. 19 and is currently knocking on the door of this level pre-earnings. The hold rated rug maker has a semiannual value level at $109.94 with a weekly risky level at $139.87.

Newmont Mining ($27.65) set a multi-year low at $25.33 on Oct. 15. The hold rated gold miner has a quarterly value level at $23.78 with its 50-day simple moving average at $28.80 and an annual risky level at $50.88.

Standard & Pacific ($8.31) has been trading back and forth around its 200-day SMA since June 24 and is currently just above its 200-day at $8.29. The sell rated homebuilder has a semiannual value level at $7.58 with a weekly risky level at $8.60.

WellCare ($67.36) set a multi-year high at $73.41 on Oct. 4 and is now below its 50-day SMA at $68.53. The hold rated managed care services company has a quarterly value level at $60.56 with a semiannual pivot at $69.44 and semiannual risky level at $72.05.

Exxon Mobil ($88.93) has been below its 200-day SMA since Aug. 13 and the stock is rebounding towards its 200-day at $89.59 pre-earnings. The low since Aug. 13 was $84.79 on Oct. 10. The hold rated energy company and Dow component has a semiannual value at $75.04 with a weekly pivot at $87.94 and quarterly risky level at $102.39.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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