Constellation Brands (STZ) ($32.94 vs. $31.92 on Aug. 6) - set a multiyear high at $34.20 on Sept. 7. STZ is rated a strong buy, has a so-so P/E ratio and is well above its 200-day SMA at $23.56. Employ a "buy and trade" strategy between the value level and risky level.
Whole Foods Market (WFM) ($97.62 vs $94.60 on August 6) set a multiyear high at $99.60 on Sept. 14. WFM is rated a Buy, has an extremely elevated P/E ratio and is well above its 200-day SMA at $84.92. Employ a "buy and trade" strategy between the value level and risky level.
Wal-Mart Stores (WMT) ($73.99 vs $74.55 on Aug. 6) set a multiyear high at $75.24 on July 30. WMT is rated a strong buy, has a so-so P/E ratio and is well above its 200-day SMA at $64.50. Consider selling strength to the multiyear high at $75.24, then employ a GTC limit order to buy weakness to my monthly value level at $72.62.
All eight of the stocks profiled today are overvalued fundamentally with overbought weekly chart profiles. All eight have traded higher by 11.3% (PG) to 72.1% (STZ) over the past 12 months, have P/E ratios between 14.4 (CCE) and 39.7 (WFM). In my judgment, when these stocks turn lower, the risk is to the 200-day simple moving averages.At the time of publication, Suttmeier held no positions in securities mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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