NEW YORK ( TheStreet) -- First-quarter earnings season begins like all others with the report from Alcoa (AA ) after the close today. Improved auto sales could help the company, but the global economic slowdown and sequestration spending cuts could be a drag on Alcoa and the basic materials sector.
After Alcoa, earnings shifts to consumer spending and on Wednesday we get reports from one consumer staples company and two retail-wholesale companies. Two of the three have buy ratings according to ValuEngine.
The earnings report I am watching on Thursday is a sell-rated trucker from the transportation sector I have been warned about.
Friday premarket two of the four "too big to fail" banks report quarterly results and I will cover them in a special update on the big banks on Thursday. The basic industries sector which includes Alcoa is the only undervalued sector, undervalued by 6.4%. It is also the weakest sector, down 4.0% month to date and down 31.1% overall over the last 12 months. The sector consists of 418 stocks with only one rated strong buy, 12 rated buy, 129 rated sell and 50 rated strong sell. This makes it difficult to pick winners in this sector. The consumer staples sector is 16.2% overvalued but out of 267 stocks, 130 have buy ratings with only ten rated sell and 4 rated strong sell.
The retail-wholesale sector is similarly configured with an overvalued reading of 14.0%. This sector contains 358 stocks with three rated strong buy, 232 rated buy, and just 20 rated sell and two rated strong sell. Tomorrow I will profile several retail-wholesale stocks that should outperform the market and outperform discretionary and staples stocks. Reading the Table OV / UN Valued: The 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV