United Technologies And Harley-Davidson Headline Tuesday's Earnings

TheStreet.com

NEW YORK (TheStreet) -- Today's buy-and-trade earnings previews 11 companies; two from the computer and technology sector, two from the finance sector, and one each from the aerospace, autos-tires-trucks, basic materials, consumer discretionary, multi-sector conglomerates, oils-energy and retail-wholesale sectors.

The ValuEngine valuation warning intensified with 78.2% of all stocks being overvalued, 46.3% by 20% or more. 15 of 16 sectors are overvalued, all by double-digit percentages, ten by 20.2% to 26.3%.

The aerospace sector is 22.1% overvalued with an underweight rating. 67.6% of the 74 stocks in this sector have sell or strong sell ratings.

The autos-tires-trucks sector is 26.2% overvalued with an underweight rating. 40.2% of the 97 stocks in this sector have sell or strong sell ratings.

The basic materials sector is 4.5% undervalued with an underweight rating. 57.4% of the 401 stocks in this sector have sell or strong sell ratings.

The computer and technology sector is 24.3% overvalued with an overweight rating. 47.4% of the 1155 stocks in this sector have buy or strong buy ratings.

The consumer discretionary sector is 23.7% overvalued with an equal-weight rating. 82.5%% of the 401 stocks in this sector have hold ratings.

The finance sector is 20.2% overvalued with an equal-weight rating. 81.9% of the 3050 stocks in this sector have hold ratings.

The multi-sector conglomerates sector is 19.9% overvalued with an overweight rating. 64.7% of the 51 stocks in this sector have buy or strong buy ratings.

The oils-energy sector is 10.6% overvalued with an underweight rating. 32.7% of the 553 stocks in this sector have sell or strong sell ratings.

The retail-wholesale sector is 26.3% overvalued with an overweight rating. 81.7% of the 349 stocks in this sector have buy or strong buy ratings.

Three of the 11 stocks in today's table have buy ratings, and eight have hold ratings. Only two are undervalued, and five are overvalued by 20.1% to 40.3%. Only one stock is below its 200-day SMA with 10 above which reflects the risk of reversion to the mean. One of these tested its 200-day SMA recently.

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.

Cree ($73.86) is approaching its multi-year high at $75.76 set on Aug. 13 with a low at $53.80 on Aug. 27. The hold rated semiconductor company has a semiannual value level is $70.97 with a weekly pivot at $72.45 and monthly risky level at $74.29.

Du Pont ($59.62) set a multi-year high $60.86 on Sept. 19 then traded as low as $56.46 on Oct. 9. The hold rated diversified chemical company and Dow component has a weekly value level at $59.18 and a monthly risky level at $61.73.

EMC Corp ($25.08) traded below its 200-day SMA at $24.64 on Oct. 17. The buy rated computer storage device company has an annual value level at $22.54 with a monthly pivot at $24.45 and a quarterly risky level at $29.73.

Harley-Davidson ($65.75) set a multi-year high at $66.59 on Oct. 16. The hold rated iconic motorcycle maker has a monthly value level at $62.06 with a semiannual picot at $65.15 and quarterly risky level at $68.22.

Lockheed Martin ($128.90) set a multi-year high at $131.60 on Sept. 19 on strength that defies the risk of sequestration spending cuts. The hold rated defense stock has an annual value level at $112.40 with a quarterly pivot at $128.16 and monthly risky level at $134.36.

Nabors ($17.80) is attempting to return to its 2013 high at $18.24 set on Feb. 19. The hold rated land drilling contractor in the oil and gas industry has a monthly value level at $14.89 with an annual pivot at $18.49 and quarterly risky level at $19.15.

Panera Bread ($159.90) has had its share price sliced to $155.07 on Oct. 9 well below its 200-day SMA at $172.44. The buy rated retail bakery-cafe has an annual value level at $145.66 with a weekly pivot at $157.53 and semiannual risky level at $179.90.

Regions Bank ($10.11) is attempting to return to its multi- year high at $10.52 set on July 24. The hold rating regional bank has a semiannual value level at $9.81 with a monthly pivot at $10.20 and quarterly risky level at $11.83.

Travelers ($86.58) traded down from $87.53 on Sept. 19 to $82.24 on Oct. 9 and is trying to get back to the high. The hold rated provider of commercial property and liability insurer and Dow component has a semiannual value level at $72.35 with a semiannual pivot at $85.15 and monthly risky level at $87.46.

United Technologies ($107.74) set a multi-year high at $112.46 on Sept. 19 then traded down to $102.21 on Oct. 9. The buy rated conglomerate is a Dow component has a semiannual value level at $96.86 with a monthly pivot at $107.61 and monthly risky level at $108.97.

Whirlpool ($133.43) set a multi-year high at $151.84 on Sept. 19 then declined to $129.22 on Oct. 14. The hold rated appliance maker has a semiannual value level at $130.26 with a monthly risky level at $138.68.

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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