Agricultural equipment maker Deere (DE) ($82.51 vs. $81.74 on Aug. 9) beat EPS estimates by 40 cents a share premarket on Aug. 14. Since then the stock has traded back and forth around its 50-day SMA at $83.11 staying below its 200-day at $86.70. The trading range was from a low of $81.00 last Thusday to a high of $85.07 on Monday. The hold rated stock stayed between my quarterly value level at $77.79 and my monthly risky level at $88.86 with a pivot this week at $83.50.
Department store Macy's (M) ($44.93 vs. $48.52 on Aug. 9) joined the earnings parade with an EPS miss of 6 cents a share earning 72 cents premarket on Aug. 14. The buy rated stock fell from its 50-day SMA at $48.23 on Aug. 13 to a low of $44.56 yesterday still above the 200-day SMA at $43.40 with my semiannual pivot at $46.21.
The Internet technology company NetEase (NTES) ($72.45 vs. $60.40 on Aug. 9) beat EPS estimates by 11 cents a share earning $1.37 in afterhours trading on Aug. 14. The stock opened the next morning above my quarterly pivot at $61.52, which began a moon-shot to a high of $74.69 on Aug. 20. This strength caused the stock to be to become a momentum trade. Buy-and-trade investors should thus consider booking profits, as the stock was downgraded to hold from buy.
Paint and coatings supplier Valspar (VAL) ($63.30 vs. $69.92 on Aug. 9) missed EPS estimates by 4 cents earning $1.07 a share on Aug. 13. The hold rated stock held its 200-day SMA at $64.54 on Aug. 13 then failed at its 50-day SMA at $67.46 on Aug. 14. Since then the stock has slipped to a low of $62.12 on Tuesday. My semiannual pivot is $63.88 with semiannual and quarterly risky levels at $68.80 and $70.84.At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV