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.
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 + 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