NEW YORK (TheStreet) -- This week brings earnings reports from seven important stocks.
The market's reaction to these earnings reports should set the stage for market performance for at least the remainder of the fourth-quarter earnings season.
(Note that many major banks also are reporting earnings. You can read my profiles of them in "Buy-Rated Big-Bank Stocks to Trade Pre-Earnings.")
At www.ValuEngine.com we continue to show that all 16 market sectors are overvalued. The stocks I'm previewing today are in the following sectors: construction, which is overvalued by 20.1%; finance, overvalued by 13.0%; medical, overvalued by 12.2%; computer & technology, overvalued by 12.4%; oils-energy, overvalued by 3.3%; and multisector conglomerates, overvalued by 4.3%.Two of the seven stocks profiled today are overvalued, one by 20.5% and another by a whopping 53.1%. Five have buy ratings, and two have hold ratings.
One is down 11.8% over the past 12 months, while four had double-digit gains ranging from 15.8% to 85.1% during that period. The upside for these stocks over the next 12 months ranges from 4.3% to 11.3%. One of the seven has an elevated 12-month trailing price-to-earnings ratio of 36.8. Five of seven are trading above their 200-day simple moving averages (SMA), which reflects the downside risk of a reversion to the mean.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV