Here I profile seven companies that report their quarterly earnings on Tuesday and Wednesday. These companies include the worldwide leader in Internet networking, a provider of Internet applications, a provider of paint and coatings, an agriculture equipment manufacturer, a family-oriented apparel and home furnishing retailer, a sporting goods retailer and the retailer that sponsors the Thanksgiving Day Parade and the July 4th fireworks display in New York City.
Before the wave of retail earnings reports, the July reading on Retail Sales will be released at 8:30 a.m. Tuesday. Estimates range from a decline of 0.2% to a rise of 0.3%.
The ValuEngine shows that the retail-wholesale sector is 24% overvalued with an overweight rating. The computer and technology sector is 21.2% overvalued with an overweight rating. The consumer staples sector is 20.9% overvalued with an overweight rating. The construction sector is 15.3% overvalued with an underweight rating. The industrial products sector is 19.6% overvalued with an underweight rating.
Among the seven stocks profiled today, four have buy ratings and three have hold ratings. Two stocks are slightly undervalued, and only one is overvalued by more than 20%. Four had double-digit gains over the last 12 months. Two are below their 200-day simple moving averages. The risk of a reversion to the mean is thus a factor for six of the stocks.
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.
Cisco ($26.05) set a multi-year high at $26.48 on Aug. 7. My quarterly value level is $24.44 with a monthly pivot at $26.09 and weekly risky level at $26.79.
Dillards ($80.14) set a multi-year high at $94.86 on May 22 then fell to $78.97 on June 24. My monthly value level is $78.18 with a weekly pivot at $80.72 and quarterly risky level at $84.22.
Deere ($81.74) set a multi-year high at $95.60 back on Jan. 30 then set a 2013 low at $79.50 on June 24. My quarterly value level is $77.79 with a weekly pivot at $80.72 and monthly risky level at $88.86.
Dicks Sporting Goods ($51.72) set a multi-year high at $54.25 on May 21. My weekly value level is $50.94 with a quarterly pivot at $52.92 and a semiannual risky level at $57.74.
Macy's ($48.52) set a multi-year high at $50.77 on July 9. My semiannual value level is $46.21 with a quarterly pivot at $47.88 and monthly risky level at $49.99.
NetEase ($60.40) set a multi-year high at $68.77 on July 25. My semiannual value level is $58.85 with a quarterly pivot at $61.52 and a weekly risky level at $65.14.
Valspar ($69.92) set a multi-year high at $74.25 on May 28 then tested its 200-day simple moving average at $62.78 on June 24. My weekly value level is $6.23 with a semiannual pivot at $68.80 and quarterly risky level at $70.84.
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.