The six sectors cover two stocks each from the consumer discretionary and oils-energy sector, and one each in these sectors; business services, computer and technology, consumer staples and medical.
The ValuEngine valuation warning remains in place with 77.7% of all stocks being overvalued, 46.8% by 20% or more, with 15 of 16 sectors overvalued by double-digit percentages, 11 by 20.7% to 26.9%.
The business services sector is 25.5% overvalued with an equal-weight rating. Of the 232 stocks 62.5% in this sector have hold ratings.
The computer and technology sector is 24.1% overvalued with an overweight rating. Of the 1149 stocks 50.5% in this sector have buy or strong buy ratings.
The consumer discretionary sector is 23.9% overvalued with an equal-weight rating. Of the 400 stocks 83.3% in this sector have hold ratings.
The consumer staples sector is 18.3% overvalued with an overweight rating. Of the 261 stocks 49.4% in this sector have buy or strong buy ratings.
The medical sector is 20.9% overvalued with an equal-weight rating. Of the 780 stocks 56.8% in this sector have hold ratings. P/>The oils-energy sector is 9.8% overvalued with an underweight rating. Of the 552 stocks 31.7% in this sector have sell or strong sell ratings.
Two of the eight stocks in today's table have buy ratings and six have hold ratings. None are undervalued, while three are overvalued by 26.1% to 35.8%. All have gains over the last 12 months between 10.4% and 58.0%. Two stocks are below their 200-day simple moving averages and six 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.
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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