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Will Google and Microsoft Earnings Trump QE?

Stocks in this article: COFGOOGISRGMSMSFTUNHUNPVZ

Morgan Stanley (MS) ($27.70) beat EPS estimates by 2 cents earning 45 cents per share reported premarket on Thursday. The stock traded to a new multi-year high at $27.95 on Thursday. My weekly value level is $25.75 with a monthly pivot at $27.13 and semiannual risky level at $29.47. Morgan Stanley has a hold rating and is 34.7% overvalued and is up 98.0% over the last 12 months.

Microsoft (MSFT) ($35.44) missed estimates by 15 cents earning 59 cents per share. The company also missed on the revenue line. Shares fell 6.3% in after hours trading down to $33.20. My monthly value level is $32.41 with quarterly and semiannual pivots at $33.52 and $33.95 and a semiannual risky level at $35.89 versus the July 16 multi-year high at $36.42. Microsoft has a hold rating and is 25.1% overvalued and is up 16.4% over the last 12 months going into this earnings report.

UnitedHealth Group (UNH) ($70.55) beat estimates by 15 cents earning $1.40 per share premarket on Thursday. The stock set a new multi-year high at $70.85 vs. my semiannual risky level at $73.01. My semiannual value level is $62.39. UnitedHealth has a hold rating and is 24.5% overvalued and is up 25.2% over the last 12 months.

Union Pacific (UNP) ($161.36) beat estimates by 2 cents earning $2.37 per share reporting premarket on Thursday. The stock set a new multi-year high at $162.30 versus my semiannual risky level at $167.94. My monthly value level is $159.33. Union Pacific has a sell rating and is 20.6% overvalued and is up 36.1% over the last 12 months.

Verizon Communications (VZ) ($49.97) matched estimates premarket on Thursday earning 73 cents per share. The stock declined to $49.19 versus my semiannual pivot at $49.86. My weekly value level is $47.35 with a semiannual pivot at $49.86 and monthly risky level at $50.86. Verizon has a buy rating and is just 1.4% overvalued and is up 8.9% over the last 12 months. >

At the time of publication the author held no positions in any of the stocks mentioned.

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

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
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