This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Positive Earnings in Overvalued Market


NEW YORK ( TheStreet) -- Earnings winners continued on Thursday with more beats than misses. But this week we also observed that all stocks are not created equal in an extremely overvalued market. Stocks that missed earnings estimates or offered cautious outlooks can get their share price severely cut in a move to behind the investor woodshed.

I did not realize that potash prices were controlled by cartels similar to OPEC in the oil market. This week companies that produce fertilizer took a major hit on a glut of the ingredient called potash. Wholesale potash prices have been falling since mid-2009, so when a dominating potash cartel collapsed, the industry got hit hard on a potential price war. The three names I profile today were taken to the woodshed on Tuesday on this news.

On July 30 I profiled nine stocks in, Apple Downgraded, Chevron, Exxon and P&G Earnings Preview Apple Downgraded, Chevron, Exxon and P&G Earnings Preview where I profiled eight stocks that reported results on Aug. 1. The ninth Chevron (CVX) ($126.44) reports results premarket this morning.

Beazer Homes (BZH) ($17.01) beat EPS estimates by 13 cents with a loss of 22 cents a share. The homebuilder has been hovering above its July 5 low at $16.48. My weekly value level is $15.79 with a monthly risky level at $19.71.

Cardinal Health (CAH) ($51.09) beat EPS estimates by 2 cents earning 79 cents a share. This retail-wholesale stock set a new multi-year high at $51.33 on Aug. 1. My semiannual value level is $43.56 with monthly and semiannual pivots at $50.97 and $51.18.

Linkedin (LNKD) ($213.00) beat EPS estimates by 3 cents earning 7 cents a share. This social media stock traded up to a new all time high at $228.80 in the afterhours vs. my new monthly risky level at $231.49.

Mohawk Industries (MHK) ($121.29) beat EPS estimates by 18 cents earning $1.84 a share. This consumer discretionary stock traded up to $131.50 in afterhours trading versus my monthly risky level at $132.63.

Procter & Gamble (PG) ($81.64) beat EPS estimates by 2 cents earning 79 cents a share. The reaction high on August 1 was $82.23 vs. the May 24 high at $82.35 and the April 23 high at $82.54. This Dow component has annual value levels at $78.73 and $75.13 with semiannual and monthly risky levels at $81.86 and $82.93.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs