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Apple Buy, Google Hold, Amazon Sell

Amazon.com ($275.59) had a hold rating back on Feb. 5, but with new monthly benchmark data from ValuEngine the stock has been downgraded to sell with the stock below its Jan. 25 high at $284.72.

Amazon is 71.1% overvalued with a twelve month forward P/E ratio at 171.9. The weekly chart shifts to neutral with a close this week above its five-week MMA at $266.29.

The 200-week SMA lags at $175.17.

My quarterly value level is $255.75 with a monthly pivot at $275.15 and a weekly risky level at $277.07, so profits should be taken with the stock between these levels. My semiannual risky level is $307.64.



Chart Courtesy of Thomson / Reuters

Google ($838.60) continues to have a hold rating and set a new all time high at $840.14 on Tuesday. Google is 3.3% overvalued according to ValuEngine with a twelve month forward P/E ratio at 16.61. The one-year price target is just above Tuesday's all time high at $841.81.

As oversold as Apple is on its weekly chart, that's how overbought Google has become with a 12x3x3 weekly slow stochastic reading at 91.27, where readings above 80.00 are overbought. The five-week MMA is $783.72 with the 200-week SMA at $576.35. My quarterly value level is $660.40 with a weekly pivot at $809.61 and semiannual and monthly risky levels at $854.04 and $868.08.

Chart Courtesy of Thomson / Reuters

Tomorrow I will profile 10 to 15 brand name stocks that were downgraded to hold from buy following monthly benchmark revisions to ValuEngine data. Many of these names may surprise you.

With the Dow at new all-time highs, a Dow Theory Buy Signal has been confirmed, but with strength in a market that's overvalued fundamentally and overbought technically, individual stocks will lose buy ratings on strength as they move from value investments to momentum trades.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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