Facebook Booms, Merck, Pfizer Earnings Loom

TheStreet.com

NEW YORK (TheStreet) -- Earnings season peaked this week in terms of the number of stocks that reported. On July 23 I profiled nine stocks that reported results on July 24 in Boeing, Caterpillar, Facebook Earnings Ahead . Seven beat their EPS estimates and only one missed.

On July 24 I profiled 13 stocks in Amazon, GM and 3M Earnings Preview. These stocks reported earnings results Thursday, and on Monday I will provide a scorecard for these names. I will also profile eight stocks that report their earnings on Wednesday.

Today I provide my buy-and-trade data for five stocks that report results on Tuesday.

Here's my scorecard for the July 24 field of stocks:

Akamai Tech ($45.19) matched estimates earning 37 cents a share. The stock opened lower Thursday with a low at 42.40. Buy-and-trade investors who had GTC Limit Orders to buy weakness to my monthly value level is $43.27 were filled at the opening price at $42.50 and the stock popped to $45.59.

Boeing ($106.70) beat estimates by 9 cents earning $1.67 a share. Boeing reported premarket on July 24 and traded up to a new multi-year high at $109.49 at the open. Buy-and-trade investors with a GTC Limit Order to sell did so as $109.49 is my semiannual risky level. My monthly value level is $103.24 with a weekly pivot at $105.72 and semiannual risky level at $109.49.

Caterpillar ($82.14) missed estimates by 26 cents earning $1.45 a share. This stock disappointed once again and traded to a low of $81.35 on Thursday. Failing to hold the 50-day simple moving average at $84.91 lead to a test of this week's pivot at $82.80.

Citrix Systems ($67.98) beat estimates by 2 cents earning 47 cents a share. The stock opened Thursday with a high at $70.66 then fell to $66.98. Buy-and-trade investors with a GTC Limit Order to sell strength to my annual risky level were filled at the opening price at $70.45. Support is the 200-day SMA at $66.44.

EMC ($26.75) beat estimates by a penny earning 35 cents a share premarket on Wednesday. The stock spiked to $27.34 then declined to $26.31 on Thursday. My monthly value level is $23.59 with a weekly pivot at $25.75 and semiannual risky level at $32.66.

Facebook ($34.36) beat estimates by 4 cents earning 13 cents a share. The stock opened Thursday at $33.54 traded up to $34.00 then dipped to $32.75 before popping to a day's high at $34.88. Since Facebook is a May 2012 IPO, my model can only generate weekly and monthly levels, and the stock stayed above my monthly risky level, now a pivot at $32.29.

F5 Networks ($87.29) beat estimates by 2 cents earning 87 cents a share. The stock opened at $87.97 just above its 200-day SMA at $87.65. The day's high was $92.79 before closing below the 200-day SMA. Given opening strength buy-and-trade investors could have sold at my monthly risky level at $89.96.

Pepsico ($85.55) beat estimates by 12 cents earning $1.31 a share premarket Wednesday. The stock opened at $86.70 then drifted to a low of $85.28 on Thursday. My monthly value level is $84.80.

Visa ($194.61) beat estimates by 9 cents earning $1.88 a share. The stock traded up to a new multi-year high at $196.00 above my quarterly risky level, now a pivot at $193.54.

Stocks continue to trade under a ValuEngine valuation warning with 76.7% of all stocks overvalued, 45.1% are overvalued by 20% or more. Fifteen of 16 sectors are overvalued, 14 by double-digit percentages.

Here is my table of data for the five stocks reporting results on Tuesday:

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.

The five stocks in today's table are all rated hold with three overvalued by more than 20%. Four have double-digit gains of 13.0% to 85.7% over the last 12 months. With hold ratings these stocks can be up or down by 5.0% over the next 12 months. Four out of five are trading above their 200-day SMA reflecting the risk of a reversion to the mean.

Aetna ($65.58) set a multi-year high at $66.00 on July 24. My monthly value level is $63.19.

Cummins ($116.58) traded down from $122.31 on May 31 then down to $105.55 on June 24. My quarterly value level is $100.94 with a monthly risky level at $127.74.

Merck ($48.17) set a multi-year high at $50.16 on June 4 then as low as $46.03 on July 2. My annual value level is $46.99 with a quarterly pivot at $47.75 and semiannual risky level at $51.80.

Pfizer ($29.19) set a multi-year high at $31.15 on April 23 then traded as low as $27.12 on June 3. My semiannual value level is $28.62 with a monthly risky level at $29.76.

United States Steel ($18.77) set its 2013 high at $26.29 on Jan. 3 and its 2013 low at $15.80 on April 22. My weekly value level is $17.13 with a monthly risky level at $19.31.

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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