NEW YORK ( TheStreet) -- The yield on the U.S. Treasury bond approached 4% this week, which caused stocks to become more overvalued of less undervalued.
Friday, the ValuEngine valuation warning continues with 75.5% of all stocks overvalued 40% by 20% or more; 15 of 16 sectors are overvalued 13 by double-digit percentages. Six sectors are overvalued by more than 20% with the autos-tires-trucks the most overvalued by 26.4%.
The auto-tires-trucks sector is rated underweight with only one buy-rated stock and with 36.6% of all stocks rated sell.
The 14 stocks for this sector that I profile today have gained between 33.3% and 508.2% over the last 12 months, with four setting new multi-year or all-time highs this week. Eight of these stocks are rated hold and six are rated sell; 13 are overvalued by more than 20%, by 22.3% to 51.4%. All are above their 200-day simple moving average, which reflects the risk of a reversion to the mean.
Reading the Table
OV / UN Valued -- The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
VE Rating -- A "1-Engine" rating is a Strong Sell, a "2-Engine" rating is a Sell, a "3-Engine" rating is a Hold, a "4-Engine" rating is a Buy and a "5-Engine" rating is a Strong Buy.
Last 12-Month Return (%) -- Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage.
Forecast 1-Year Return -- Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months.
Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.