UPS, Exxon, Ford in Earnings Profiles

TheStreet.com

NEW YORK (TheStreet) -- Today I profile nine stocks from seven sectors including four Dow components, two of which are rated buy according to www.ValuEngine.com. Three companies report their quarterly results pre-market on Wednesday, one after the close on Wednesday, and five pre-market on Thursday.

Today's nine stocks represent seven sectors, all of which are overvalued according to ValuEngine.

By the start of business on Friday we will have a map projecting the path of the transportation sector as the market reacts to quarterly results from two sell rated truckers and one hold rated air freight company. All three of these transports began the year with buy ratings.

On Monday we learned that buy rated Dow component Caterpillar missed estimates by nine cents earning $1.31 per share, and that the company also missed on the revenue line. Caterpillar was rated hold on March 26 when I suggested that investors should Allocate U.S. Holdings to 14 Top Dow Stocks. The stock traded up to $83.13 on Monday before ending the session at $82.71. The low for the day was a dip into the red at $79.49.


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 six companies I cover today represent five overvalued sectors.

Companies reporting pre-market on Wednesday:

Boeing ($86.94) is a hold rated Dow component in the aerospace sector which is 8.4% overvalued. The stock set a multi-year high at $89.46 on April 11. The weekly chart profile is positive but overbought with the stock above its five-week modified moving average at $84.92. My monthly value level is $77.99 with an annual pivot at $88.82 and semiannual risky level at $89.98.

Ford Motor ($13.06) is a sell rated stock in the autos-tires-trucks sector which is 2.1% overvalued. The stock set its 52-week high at $14.30 on Jan. 17. The weekly chart profile shifts to positive with a close this week above its five-week MMA at $13.03. The 200-week simple moving average is support at $11.80. My quarterly value level is $8.51 with a monthly risky level at $14.45.

Procter & Gamble ($81.40) is a buy rated Dow component in the consumer staples sector which is 14.9% overvalued. P&G set a multi-year high at $81.70 Friday. The weekly chart profile is positive but extremely overbought with the five-week MMA at $78.65. My annual value level is $78.73 with a monthly pivot at $79.68.

One company reports quarterly results after the close on Wednesday:

Qualcomm ($64.58) is a hold rated stock in the computer and technology sector which is 6.7% overvalued. Qualcomm set its multi-year high at $68.87 back on March 27, 2012. The weekly chart profile is stays negative on a close this week below its five-week MMA at $65.27. My annual value level is $53.29 with an annual pivot at $64.58 and quarterly risky level at $65.63.


Companies reporting pre-market on Thursday:

Landstar Systems ($54.77) is a sell rated transportation stock with that sector 14.2% overvalued and viewed as a "avoid-source of fund" in my opinion. Landstar set a multi-year high at $59.97 on Jan. 28. The weekly chart profile stays negative on a close this week below the five-week MMA at $55.63 with the 200-week SMA at $44.97. My semiannual value level is $51.73 with a quarterly risky level at $55.95 and monthly risky level at $56.30.

3M Company ($105.80) is a buy rated Dow component in the multi-sector conglomerate sector which is fractionally overvalued. 3M set a multi-year high at $108.71 on April 11. The weekly chart profile shifts to negative on a close this week below the five-week MMA at $105.27. My monthly value level is $102.90 with a weekly pivot at $108.35 and semiannual risky level at $111.34.

Old Dominion Freight ($37.23) is a sell rated stock in the transportation sector which is 14.2% overvalued and rated "avoid-source of funds." The stock set a multi-year high at $48.76 on March 15. The weekly chart profile stays negative with a close this week below its five-week MMA at $37.19. My semiannual value level is $35.09 with a quarterly pivot at $37.20 and weekly risky level at $39.27.


United Parcel Service ($83.26) is a hold rated stock in the transportation sector which is 14.2% overvalued. The stock set a multi-year high at $85.95 on April 1. The weekly chart profile stays negative with a close this week below its five-week MMA at $83.42. My semiannual value level is $80.21 with a weekly risky level at $85.30.

Exxon Mobile ($88.09) is a hold rated Dow component in the oils-energy sector which is 0.4% overvalued. The weekly chart profile stays negative with a close this week below the five-week MMA at $88.73. My quarterly value level is $86.82 with a weekly pivot at $88.59 and monthly risky level at $91.89.

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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