NEW YORK (TheStreet) -- Profiles of nine stocks that report their Q4 quarterly earnings this week, including five Dow components are examined below. These stocks represent a jungle of activity in seven overvalued sectors.
The most important earnings report is Amazon (AMZN), an obvious momentum stock with a growth story. Amazon traded to a new all-time high at $284.72 last Friday, Jan 25.
Stocks are approaching dangerous overvalued readings according to www.ValuEngine.com. This morning we show that 62.4% of all stocks are overvalued, and as I explained on Jan. 25 in Market Hasn't Peaked a reading of 65% and higher is a warning for the stock market. Only 37.6% are undervalued and only 14.7% of these are undervalued by 20% or more. This reflects limited additional upside for the stock market.
ValuEngine also shows that all 16 sectors are overvalued, nine by double-digit percentages. The seven sectors represented by the stocks profiled here are overvalued: aerospace by 6.8%, computer & technology by 15.7%, consumer discretionary by 9.2%, medical by 16.0%, oils-energy by 6.5%, retail-wholesale by 15.8% and transportation by 24.9%.
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 + 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