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Update on Nine Disaster Recovery Stocks

NEW YORK ( TheStreet) -- The recovery from the damages caused by super storm Sandy has progressed another three months since I wrote "9 Stocks to Play in the Sandy Recovery" back on May 7. Today I will evaluate the winners and losers from both a price gains or losses and earnings beats and misses.

On May 7, three stocks had buy ratings according to today one of those has a hold rating leaving two with current buy ratings. Three months ago five had hold ratings and today six have hold ratings, one was a downgrade from buy, another was an upgrade from sell. A hold-rated stock became the only sell rated stock today.

On May 7, two stocks were modestly undervalued and today there are four. Back then three were overvalued by more than 20% and today there are five. The gains over the last 12 months remain robust by 20.0% to 95.7% across all nine stocks.

On May 7, all nine were above their 200-day simple moving averages and today three are below, reflecting the risk of a reversion to the mean. Six of the nine stocks returned to their 200-day SMA between the May 7 post and today's post.

Three months ago we were in the midst of first-quarter 2013 earnings season, and today we are looking at second-quarter earnings.

[Read: <a target="blank" data-add-tracking="true" href=""><em>Treasury Bonds: New Lows, Now What?</em></a>]
To review, when you evaluate companies that can help in disaster recovery the focus is on stocks in the construction sector, which is overvalued by 17.7% vs. a reading of 17.9% in May. These companies provide building materials such as lumber and paint.

Other companies are in the retail-wholesale sector, which is 25.4% overvalued up from 17.4% three months ago, and the industrial products sector, which is 20.7% overvalued today up from 7.3% overvalued in May. Such companies provide miscellaneous building, machine tools and other repair items. The consumer discretionary sector, which is 24.9% overvalued up from 8.9% in May. This sector includes companies that provide replacement household appliances.

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