The ValuEngine valuation warning continues with 78.4% of all stocks being overvalued, 46.9% by 20% or more. Also, 15 of 16 sectors are overvalued, all by double-digit percentages, 11 by 21% to 27.4%.
The aerospace sector is 23.3% overvalued with an underweight rating. 67.6% of the 74 stocks in this sector have sell or strong sell ratings.
The industrial products sector is 22.9% overvalued with an underweight rating. 42.1% of the 347 stocks in this sector have sell or strong cell ratings.
The medical sector is 22.0% overvalued with an equal-weight rating. 59.2% of the 784 stocks in this sector have hold ratings.
The retail-wholesale sector is 27.4% overvalued with an overweight rating. 81.7% of the 349 stocks in this sector have buy or strong buy ratings.
The transportation sector is 26.1% overvalued with an 'avoid-source of funds rating. 75.6% of the 176 stocks in this sector have sell or strong cell ratings.
The utilities sector is 11.2% overvalued with an overweight rating. 90.1% of the 212 stocks in this sector have buy or strong buy ratings.
Four of the nine stocks in today's table have buy ratings, three have hold ratings and two have sell ratings. One is undervalued by 24% and three are overvalued by 26.8% to 29.8%. Only two stocks are below their 200-day SMAs 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.
Boeing ($121.47) set another multi-year high at $122.86 on Friday. The sell rated maker of the Dreamliner and Dow component has a quarterly value level at $115.10 with a weekly pivot at $124.94 and monthly risky level at $126.05.
Caterpillar ($87.70) returned to its 200-day SMA at $87.21 on recent strength. The hold rated maker of construction and mining equipment maker and Dow component has a monthly value level at $71.51 with a weekly pivot at $86.33 and annual risky level at $96.43.
Citrix Systems ($56.90) set a 52-week low at $56.48 on Thursday. The buy rated enterprise software company has an annual risky level at $62.88.
Brinker International ($41.55) set a multi-year high at $44.28 on Aug. 2 then traded as low as $38.40 on Oct. 9. The buy rated owner of casual eateries such as Chili's has a weekly value level at $39.65 with a monthly risky level at $44.99.
General Dynamics ($88.00) set a multi-year high at $89.94 on Sept. 19 then fell to $83.61 on Oct. 9. The hold rated maker of land and amphibious combat systems has an annual value level at $86.80 with a weekly pivot at $89.14 and annual risky level at $90.45.
Northrop Grumman ($100.20) set another new multi-year high at $101.74 on Monday, then closed below Friday's low, which is a potential key reversal day. The hold rated defense subcontractor has a weekly value level at $98.54 with a monthly pivot at $101.98 and no risky levels.
Norfolk Southern ($80.00) is attempting to set a new multi-year high above the May 21 high at $81.00. The sell rated railroad has a semiannual value level at $77.40 with a weekly pivot at $79.70 and quarterly risky level at $81.28.
AT&T ($35.22) moved above its 50-day simple moving average at $34.06 on Wednesday and is trying to return to its 200-day SMA at $35.53. The buy rated telecom utility has a weekly value level at $33.94 with a monthly risky level at $35.70.
WellPoint ($87.60) set its multi-year high at $90 on July 24 and attempts to trade above that high failed on Sept. 16 and again on Wednesday. The buy rated health benefits provider is trading around its 50-day SMA at $86.37 with a semiannual value level at $83.77 with a weekly pivot at $85.96 and monthly risky level at $90.30.
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.