NEW YORK ( TheStreet) -- Today I provide my pre-earnings buy-and-trade profiles for six companies reporting results this week. Two are buy-rated stocks in the consumer staples sector. Three are buy-rated stocks in the retail-wholesale sector. The sixth is a hold-rated stock in the transportation sector.
Stocks remain fundamentally overvalued and under a ValuEngine valuation warning with 76.8% of all stocks overvalued, 43.4% by 20% or move. The retail-wholesale sector is 23.6% overvalued with the consumer staples sector 15.6% overvalued, and the transportation sector is 24.6% overvalued.
On Friday we learned that the University of Michigan consumer sentiment index declined to a preliminary reading for September at 76.8, the lowest score since April and well below the August final reading at 82.1. Consumer sentiment continues to stay below the neutral zone for this data at 90 to 110.
One of the six stocks previewed today is undervalued and two of the other five are overvalued by more than 20%. One stock is down 11.8% over the last 12 months, while four have gained between 18.7% and 58.1%. Four of the six are trading above their 200-day SMAs, which reflects the risk of reversion to the mean.