These six stocks report earnings on Thursday or Friday premarket. The computer and technology company provides the equipment that manufactures semiconductors. The consumer staples retailer makes skin care, fragrances and hair products. The retail-wholesale companies include a fashion specialty retailer, another is a family-oriented apparel, shoes and accessories retailer, one provides off-price apparel targeting consumers between the age of 25 and 54 in middle-to-upper income households, and the fifth is a sit-down chain of family-friendly restaurants featuring gourmet burgers.
The ValuEngine valuation warning continues with 76.3% of all stocks overvalued with 43.2% overvalued by 20% or more. The computer and technology sector is 21.3% overvalued. The consumer staples sector is 18.3% overvalued. And, the retail-wholesale sector is 23% overvalued.
Among the six stocks profiled today, five have buy ratings and one has a hold rating. All six are overvalued, two by more than 20%. Two stocks have traded fractionally higher over the last 12 months. Three have traded higher by 21% to 78.6% higher over the last 12 months. All five stocks are above their 200-day simple moving averages reflecting the risk of a 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.
Applied Materials ($15.65) set a multi-year high at $16.78 on July 17. My semiannual value level is $14.88 with a weekly pivot at $16.20 and monthly risky level at $17.89.
Estee Lauder ($66.58) set a multi-year high at $72.70 on May 28 then fell to $63.93 on June 24. My weekly value level is $65.32 with an annual pivot at $67.56 and annual risky level $70.93.
Nordstrom ($60.79) set a multi-year high at $63.34 on July 11. My monthly value level is $56.31 with an annual pivot at $59.87 and quarterly risky level at $60.75.
Kohls ($51.22) set its 2013 high at $54.38 on Aug. 1 then ended last week midway between its 200-day SMA at $48.51 and its 50-day SMA at $52.24. My quarterly value level is $46.73 with an annual pivot at $49.19, weekly risky level at $51.97 and an annual risky level at $54.80, not shown in the table.
Ross Stores ($67.72) set its 2013 high at $69.36 on Aug. 1, and the stock is above its 50-day SMA at $65.84. My annual value level is $54.55 with a monthly pivot at $67.94 and weekly risky level at $68.18.
Red Robin Gourmet Burgers ($56.06) set a multi-year high at $61.28 on July 15 then dipped to $55.27 on July 29 and has been trading back and forth around its 50-day SMA at $56.82 since then. My semiannual value level is $47.20 with a weekly pivot at $57.78 and monthly risky level at $62.93.
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.