The six sectors cover two stocks each from the consumer discretionary and oils-energy sector, and one each in these sectors; business services, computer and technology, consumer staples and medical.
The ValuEngine valuation warning remains in place with 77.7% of all stocks being overvalued, 46.8% by 20% or more, with 15 of 16 sectors overvalued by double-digit percentages, 11 by 20.7% to 26.9%.
The business services sector is 25.5% overvalued with an equal-weight rating. Of the 232 stocks 62.5% in this sector have hold ratings.
The computer and technology sector is 24.1% overvalued with an overweight rating. Of the 1149 stocks 50.5% in this sector have buy or strong buy ratings.
The consumer discretionary sector is 23.9% overvalued with an equal-weight rating. Of the 400 stocks 83.3% in this sector have hold ratings.
The consumer staples sector is 18.3% overvalued with an overweight rating. Of the 261 stocks 49.4% in this sector have buy or strong buy ratings.
The medical sector is 20.9% overvalued with an equal-weight rating. Of the 780 stocks 56.8% in this sector have hold ratings. P/>The oils-energy sector is 9.8% overvalued with an underweight rating. Of the 552 stocks 31.7% in this sector have sell or strong sell ratings.
Two of the eight stocks in today's table have buy ratings and six have hold ratings. None are undervalued, while three are overvalued by 26.1% to 35.8%. All have gains over the last 12 months between 10.4% and 58.0%. Two stocks are below their 200-day simple moving averages and six 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.
Chesapeake Energy ($28.84) set a multi-year high at $29.06 on Monday and has been above its 50-day SMA at $26.86 since July 1. The hold rated oil and gas company has a monthly value level at $27.19 with a semiannual pivot at $28.31 and annual risky level at $33.16.
Humana ($94.13) has been trading sideways to down since setting a multi-year high at $99.85 on Sept. 16 and had been below its 50-day SMA at $94.48 since Oct. 17, but tested that level on Monday. The buy rated healthcare services provider has an annual value level at $91.58 with a weekly pivot at $92.94 and monthly risky level at $102.71.
Lamar Advertising ($47.86) has been above its 50-day and 200-day SMAs at $45.44 and $45.42 since Sept. 19 and traded to a second half 2013 high at $48.59 on Monday. The hold rated outdoor based advertising company has a monthly value level at $44.73 with a semiannual pivot at $48.85 and a weekly risky level at $50.59. On my trips to the New York area from Tampa Bay and back I have seen many vacant Lamar billboards.
Qualcomm ($69.57) set a multi-year high at $70.37 on Sept. 10 and is just below that level pre-earnings. The hold rated provider of digital wireless communications products has a semiannual value level at $67.26 with a weekly pivot at $69.10 and quarterly risky level at $77.02.
Ralph Lauren ($169.59) has been trading below its 200-day SMA at $172.62 since Aug. 27 and traded to a 2013 low at $157.01 on Oct. 17. The stock stayed just below the 200-day on strength on Monday. The hold rated maker of apparel, fragrances and home furnishings has a weekly value level at $166.68 with a monthly pivot at $169.46 and quarterly risky level at $187.22.
Molson Coors ($54.21) set a multi-year low at $55.53 on Oct. 29. The buy rated global beer brewer has a quarterly value level at $52.68 with a weekly pivot at $54.58 and monthly risky level at $56.85.
Tesoro ($48.36) has been trading below its 200-day SMA at $52.30 since Aug. 15 is above its 50-day SMA at $45.95 since Oct. 17. The hold rated petroleum refiner has a semiannual value at $45.87 with a monthly pivot at $48.34 and annual risky level at $56.45.
Time Warner ($68.67) set a multi-year high at $70.69 on Oct. 28 and has been above its 50-day SMA at $65.43 since Sept. 9. The hold rated media and entertainment company has a semiannual value level at $63.73 with a quarterly pivot at $70.61 and a monthly risky level at $71.20.
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.