Today, we look at seven companies in six sectors; two from the oils-energy sector and one each in these sectors; basic materials, business services, construction, consumer discretionary and medical.
The ValuEngine valuation warning remains in place with 78.1% of all stocks being overvalued, 48.3% by 20% or more, and 15 of 16 sectors are overvalued by double-digit percentages, 11 by 21.4% to 27.4%.
The basic materials sector is 2.6% undervalued with an underweight rating. Of the 399 stocks in this sector 58.9% have sell or strong sell ratings.
The business services sector is 25.7% overvalued with an equal-weight rating. Of the 236 stocks in this sector 61.4% have hold ratings.
The construction sector is 17.4% overvalued with an underweight rating. Of the 158 stocks in this sector 55.7% have sell or strong sell ratings.
The consumer discretionary sector is 27.4% overvalued with an equal-weight rating. Of the 400 stocks in this sector 83% have hold ratings.
The oils-energy sector is 10.1% overvalued with an underweight rating. Of the 553 stocks in this sector 32% have sell or strong sell ratings.
The medical sector is 21.4% overvalued with an equal-weight rating. Of the 782 stocks in this sector 57.9% have hold ratings.
None of the seven stocks in today's table have buy ratings. Six have hold ratings and one has a sell rating. Only one stock is undervalued by 30.3%, while one is overvalued by 51.7%. One is down 48.1% over the last 12 months, while four have gains between 20.4% and 67.0%. Two stocks are below their 200-day simple moving averages, one is just above its 200-day and four 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.
Chevron ($121.50) broke below its 200-day SMA on Oct. 3 trading as low as $114.44 on Oct. 10 and today the stock is above its 200-day at $120.34. The hold rated energy company and Dow component has a semiannual value level at $113.49 with an annual pivot at $122.26 and annual risky level at $123.08.
MasterCard ($732.44) set another multi-year high at $737.83 on Tuesday. The hold rated credit card company has a semiannual value level at $593.62 with a quarterly pivot at $711.16 and weekly risky level at $769.67.
Mohawk Industries ($134.08) set its multi-year high at $134.74 on Sept. 19 and is currently knocking on the door of this level pre-earnings. The hold rated rug maker has a semiannual value level at $109.94 with a weekly risky level at $139.87.
Newmont Mining ($27.65) set a multi-year low at $25.33 on Oct. 15. The hold rated gold miner has a quarterly value level at $23.78 with its 50-day simple moving average at $28.80 and an annual risky level at $50.88.
Standard & Pacific ($8.31) has been trading back and forth around its 200-day SMA since June 24 and is currently just above its 200-day at $8.29. The sell rated homebuilder has a semiannual value level at $7.58 with a weekly risky level at $8.60.
WellCare ($67.36) set a multi-year high at $73.41 on Oct. 4 and is now below its 50-day SMA at $68.53. The hold rated managed care services company has a quarterly value level at $60.56 with a semiannual pivot at $69.44 and semiannual risky level at $72.05.
Exxon Mobil ($88.93) has been below its 200-day SMA since Aug. 13 and the stock is rebounding towards its 200-day at $89.59 pre-earnings. The low since Aug. 13 was $84.79 on Oct. 10. The hold rated energy company and Dow component has a semiannual value at $75.04 with a weekly pivot at $87.94 and quarterly risky level at $102.39.
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.