NEW YORK ( TheStreet) -- The Department of Defense sent out furlough notices on May 28. Another wave of spending cuts will affect military bases next week.
I live and work in Tampa, Fla., and starting on Monday, about 3,500 civilian employees at MacDill Air Force Base in Tampa will begin to take unpaid days off. Each employee will lose about 11 days of wages through the end of September. While that may not seem as a big deal on Wall Street, these furloughs will cost Main Street in Tampa about $8 million.
It appears to me that in addition to furloughs across the country at military bases, there will be spending cuts that could hit aerospace stocks. Eight of the 10 stocks I profile today set new multiyear or 2013 highs on Tuesday.
ValuEngine still shows that stocks are trading under a valuation warning with 74% of all stocks overvalued with 38.6% overvalued by 20% or more. The aerospace sector is 18.2% overvalued. My asset-allocation rating for the aerospace sector is underweight with 32.6% of the 95 stocks in this sector rated sell.Today I profile 10 stocks in the aerospace sector that will report quarterly earnings between July 19 and August 8. All 10 of these stocks are overvalued with five overvalued by more than 20%. Five of these stocks have recently been downgraded to sell from hold and the other five continue to have hold ratings. All have had big gains over the last 12 months of between 19.7% and 53.1%.