Today's earnings preview covers two stocks each in the finance, transportation and computer and technology sectors and one each in the medical and consumer staples sectors.
We begin the week with the persistent overvalued condition we call a ValuEngine valuation warning with 77.2% of all stocks overvalued 42.9% by 20% or more.
The finance sector is 18.1% overvalued with an equal-weight rating.
The transportation sector is 23.2% overvalued with an 'avoid-source of funds' rating with 74.7% of the 178 stocks in the sector rated sell or strong sell.
The computer and technology sector is 23.3% overvalued with an overweight rating with 47.5% of the 1160 stocks in the sector rated buy or strong buy.
The medical sector is 20.5% overvalued with an equal-weight rating.
The consumer staple sector is 16.2% overvalued with an overweight rating with 51% of the 263 stocks in the sector rated buy or strong buy.
Only one of today's eight stocks has a buy rating, five have hold ratings and two have sell ratings. All eight are overvalued with three overvalued by more than 20%. One stock is down fractionally over the last 12 months with five up between 22.1% and 114.5%. Only one stock is below its 200-day SMA with seven 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.
Johnson & Johnson
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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